Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Health Insurance topic
No spam. Unsubscribe anytime.
Fairfield Township trustees approve switch to partially self-funded health plan, contract with MedBen
Summary
After a presentation on self-funded options, trustees authorized a contract with MedBen to administer a partially self-funded township health plan, citing projected savings of about $136,788 and two plan options including a reference-based, all-copay design. Trustees asked staff to educate employees and union leadership before open enrollment.
The Fairfield Township Board of Trustees voted Nov. 12 to authorize the township administrator to sign a contract with MedBen for third-party administration of township health benefits and to transition the township to a partially self-funded plan.
Health insurance consultant Lisa Stamm told the board that self-funding "is a way that you can actually maintain benefits at an affordable cost" and described two proposal options she and her firm modeled for township employees: Option 1 largely mirrors the current fully insured plan design but on a self-funded basis; Option 2 uses reference-based pricing and an all-copay design intended to remove deductibles and coinsurance for most services. Stamm said the stop-loss carrier proposed a $60,000 individual specific deductible and cited HCC Life as the stop-loss carrier in modeling. She also recommended using MedBen as the third-party administrator and the pharmacy benefit manager Bentegra for transparent drug-pricing arrangements.
Board action and rationale: Staff presented savings estimates of $136,788 to the township from switching administration and plan financing. Trustees discussed timing and employee engagement and passed Resolution 25-142 authorizing the administrator to sign the MedBen contract. The board directed staff to hold employee meetings and coordinate with union leadership ahead of open enrollment; staff said the plan design and options had previously been shared with employee representatives (presentation referenced May 27 discussions) and that open enrollment preparations would take place in December to implement changes effective Jan. 1.
What this means for employees: Under the preferred option staff recommended, the township would continue to subsidize a base plan and permit employees to "buy up" to a higher option at their own cost; administrators said out-of-pocket maximums would be lower under the all-copay reference-based option in modeled scenarios and that members would retain access to care across providers (with MedBen handling balance-billing negotiations when out-of-network charges occur). Trustees asked for follow-up education sessions so employees and union leaders could review changes before final enrollment decisions.
Vote: The resolution to contract with MedBen was moved and seconded and adopted by roll call with all trustees recorded in favor.
