County-owned health consortium reports steady surplus, lower premium growth than private insurers

Don Barber, executive director of the Tompkins County Health Benefits Consortium, briefed the Legislature on the consortium's finances and governance under New York's Article 47 municipal cooperative statute. Barber said the consortium had about $36,000,000 in premium revenue in 2014 and paid roughly $30,000,000 in claims, leaving an improving surplus that the Board intends to use to moderate premium increases.

"For 2014, the number that we had of premiums was $36,000,000 ... We paid $30,000,000 in claims," Barber reported, saying the consortium's combined-stop-loss and reserve strategy had kept increases below what private carriers sought. Barber said the Board planned a 5% premium increase for 2016, compared with a pending 13% filing from a regional competitor, and that the consortium's pooled, community-rated approach had produced more predictable claims experience. He reviewed reserves, incurred-but-not-reported liabilities and the consortium's move to add Bronze and Platinum ACA-compliant plan options.

Legislators asked about catastrophic reserves, membership growth (several municipalities have joined), and governance/oversight by the Department of Financial Services. Barber said the consortium is subject to quarterly reporting and regulatory oversight, and he described a continuing outreach effort to recruit other municipalities into the pool.