Gurnee approves joining IPBC to stabilize municipal health insurance costs

The Village of Gurnee voted to approve Ordinance 2025-56 authorizing the village to accept the Intergovernmental Personnel Benefit Cooperative (IPBC) contract and bylaws and to seek membership in the cooperative. Staff told the board the village, which has been self‑insured for more than 20 years, had seen rising claims costs and projected a possible 20% increase if it remained standalone. Erica, a village finance staff member, told trustees that IPBC — a pool formed in 1979 with more than 170 public‑sector members — estimates an initial 4.2% premium increase for 2026 with the village’s current plan design and that the pool caps rate changes at plus or minus 5% for both HMO and PPO plans. The board heard that under IPBC’s risk model, members pay fixed monthly rates; claims under $50,000 are paid by the member entity, claims between $50,000 and $2,000,000 are allocated among members by employee counts, and claims above $2,000,000 are covered by stop‑loss insurance. Erica said the village could largely keep its existing carriers (Blue Cross Blue Shield for health, Delta Dental, ComPsych for EAP and other carriers for vision) and retain flexibility to bring the village’s plan design into the pool. IPBC executive director David Cook attended the meeting and staff said IPBC’s board will consider the village’s membership at its September 25 meeting; village approval tonight was the village’s required step. Trustee Garner moved to approve the ordinance; Trustee O'Brien seconded. The roll call vote recorded Balmes, Thorsenson, Woodside, Ross, Garner and O’Brien as voting aye; the motion passed 6‑0. The board presentation emphasized administration and employee support services offered by IPBC, including on‑site enrollment help, a member portal, and periodic financial reporting. Staff recommended membership as a way to achieve cost stability and retain benefit flexibility. Pending IPBC approval, the village will proceed with the administrative steps to join and to implement any carrier/ID changes required by the transfer; staff noted employees would receive assistance during the conversion.