Fairfield Township weighs Anthem renewal, self-insurance and other plans amid steep health-cost growth

Fairfield Township administrators presented health-insurance renewal options during the June 2 meeting, recommending the board authorize a short-term contract to maintain employee coverage while exploring longer-term changes including self-insurance.

Township Administrator Shannon Lipinski told trustees the carrier market initially quoted increases but that Anthem returned a renewal at no increase after the township indicated it might leave; other options would save money but entail trade-offs. Lipinski said UnitedHealthcare would reduce premiums by roughly 5% if the township remained fully insured with a different carrier, while some self-insurance proposals could reduce costs by up to about 14% in the analysis presented.

Lipinski explained self-insurance would require the township to hold premium dollars in a dedicated account, hire a third-party administrator to pay claims, and buy stop-loss (reinsurance) coverage to cap large claims. She summarized a proposal estimating expected annual claims and an annual-maximum exposure; under one illustration expected claims were about $610,000 with an annual maximum of roughly $763,000, requiring stop-loss above a specified per-claim threshold.

Trustees and staff discussed operational implications, including network compatibility (a self-funded administrator would need to use a provider network such as Medical Mutual of Ohio or Cigna), employees’ familiarity and comfort, and enrollment timing. Union and department-head feedback, Lipinski said, reflected reluctance to change carriers because of the “fear of the unknown.”

The board adopted Resolution 25-89 authorizing the township administrator to execute a contract with Anthem for short-term coverage to preserve continuity while staff pursues options. Trustees asked staff to pursue additional analysis and a plan to evaluate switching brokers or exploring captive/self-funded arrangements in the coming months.

Lipinski and trustees discussed potential employee-facing measures to lower claims under a self-insurance scenario, such as wellness programs, incentives for generic drugs and earlier use of in-network care; one model discussed included rebate or premium reductions tied to favorable claims experience. Trustees directed staff to return with additional carrier comparisons, network implications, and an implementation timeline if staff recommends a switch from full-insurance to self-insurance.