Hannibal’s employee benefit board moves city coverage to state program; city and retirees face transition costs

Summary

The Employee Benefit Trust Board voted to enroll the City of Hannibal and Board of Public Works in the Missouri Consolidated Health Care Program, shifting from a self-funded plan to a fully funded plan with estimated annual savings above $1 million; runout costs and retiree coverage changes were discussed at the May 6 council meeting.

The Employee Benefit Trust Board has elected to enroll the City of Hannibal and the Board of Public Works in the Missouri Consolidated Health Care Program (MCHCP), moving the city from a self-funded insurance model to a fully funded plan that the board estimates could save the city more than $1,000,000 per year.

City Clerk Melissa Cogdell, who presented the update to the City Council, said the change will shift claims liability from the city to the carrier and set fixed annual premiums. Cogdell told the council the city has been self-funded for more than 30 years and that reserves were depleted by large claimant costs and rising local and prescription expenses.

The change matters to city finances and employees. Under the plan the board selected, runout claims, third-party administrator fees and stop-loss premiums for prior liabilities are estimated between $600,000 and $800,000. The…

Hannibal’s employee benefit board moves city coverage to state program; city and retirees face transition costs

Summary

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