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Seaside approves $307,312 payment to MiCSIG after insurer announces unexpected deficit
Summary
Council authorized a one-time, pro rata assessment payment of $307,312.10 to the Municipalities, Colleges & Schools Insurance Group (MiCSIG) after the pooled insurer reported a late-year claims deficit.
The City Council on Jan. 16 approved a one-time payment of $307,312.10 to the Municipalities, Colleges & Schools Insurance Group (MiCSIG) after the joint insurance pool reported an unforeseen end-of-year deficit caused by late-arriving claims.
Human Resources specialist Melissa Falanga said MiCSIG provides medical insurance coverage for city employees and other member agencies. The pool notified members on Dec. 11 that an unprecedented deficit — approximately $11.6 million in late claims registered in October–December — required a pro rata assessment. Member agencies were required to pay their share by Jan. 17. The council authorized the finance director to appropriate funds within the FY 2024–25 budget to cover the assessment.
Falanga told the council the city previously recovered a substantial refund connected to a separate Medicare/Medicaid matter; after an appeal and review the city received about $480,134 back in December following an earlier authorization to pay $493,159.40. Falanga said MiCSIG rates and member contributions had been approved in August before the late claims were known; she said the pool expects to reflect this assessment in future premium and rate-setting discussions and that members should expect updated rate information later in the year.
Council asked whether not paying the assessment would risk losing coverage through the pool; Falanga replied that the MiCSIG bylaws require member compliance and failure to pay could jeopardize membership. The council approved the payment unanimously.
