Authorities hope insurance switch conserves $300000 for city – Insurance coverage News Net

5September 2020

Natchez Democrat, The (MS)



Sep. 5– NATCHEZ– Officials hope to save the City of Natchez over $300,000 a year by switching the health insurance company for

city workers. The Natchez Mayor and Board of Aldermen authorized the switch to a self-insured plan with Byrne Insurance coverage Firm– administered by Blue Cross & Blue Shield of Mississippi– during a special-called meeting Friday by a vote of 5-1. Ward 6 Alderman Dan Dillard voted”nay,”and said after the meeting that he ‘d hoped the city would have a totally funded plan rather of a self-insured one– in which the city has more expense exposure based

on the quantity of health claims. Natchez Mayor Dan Gibson said a self-insured plan, matching the city’s present plan with L.S. and Associates, allows the city to have higher control of their health insurance expenses and therefore a greater chance for savings. The present plan with L.S. and Associates cost the city more than$1,570,000 with the expense of the plan and health claims combined, Gibson said. Ad The brand-new plan with Byrne Insurance coverage, based upon present health claims, is projected to cost around $1.3 million with 168 workers insured, Gibson said.” Our claims might increase by$300,000 plus and we ‘d still be as great as where we are now,”Gibson said. The worker deductible is the exact same with both strategies at$1,000 for private and$2,000 for family, Gibson said. Dillard said he wasn’t comfy with the city’s expense exposure entering into an uncertain with the COVID-19 pandemic.

“I was wishing for a fully-funded plan simply because I’m uneasy with the outlook of the next as far as our finances. I know our budget is tight and the savings from a self-insured plan are going to assist however I think the distinction is only about $92,000 in between self-insured and completely funded. Besides that, I believe the mayor’s recommendation is a good option and I hope he proves me incorrect,” Dillard said.

The motion to accept the brand-new plan was provided by Ward 5 Alderman Benjamin Davis and seconded by Ward 3 Alderwoman Sarah Carter-Smith.

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(c)2020 The Natchez Democrat (Natchez, Miss.)

Check Out The Natchez Democrat (Natchez, Miss.) at www.natchezdemocrat.com

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Source: insurancenewsnet.com

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