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Personnel committee explores municipal self-insurance for employee health benefits; consultants and RFP expected
Summary
Councilman Lambert reported the Personnel & Labor Committee has studied municipal self-insurance as a possible response to rising annual premiums (about $5.2 million) and will seek consultant proposals (RFQ/RFP) to analyze feasibility, stop-loss needs and reserve requirements; estimated potential savings cited were roughly $300,000.
Councilman Lambert reported that the Personnel & Labor Committee has spent months studying whether Glens Falls should shift employee health benefits from fully insured plans to a self-insured model.
Lambert said the city currently pays an annual premium “presently around $5,200,000” and that the committee heard from local governments and institutions that self-insurance can yield savings in some cases. The committee explored stop-loss insurance needs, reserve requirements, administrative costs and possible additional staffing. Lambert said initial estimates suggested possible savings in the range of $300,000.
The committee plans to prepare an RFQ (request for qualifications) or RFP to hire a consultant to analyze detailed claims history (loss runs) over five years, estimate reserve needs and determine the staffing and stop-loss necessary to operate a self-insurance program. Lambert told council members that the consultant fee could be as much as $30,000 and that the process would likely extend into the late summer or early fall if pursued.
No final decision was made; the council supported moving to the consultant-selection phase to gather the data needed for a policy decision.
