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Broker warns Connellsville of run‑out costs as council considers new health‑insurance carrier
Summary
A broker who said he represents NFP urged Connellsville officials to seek competitive quotes before switching carriers and warned of run‑out and termination costs—an estimated $35,852 stop‑loss invoice and an estimated claims run‑out of $39,000–$47,000—if the city leaves its self‑funded arrangement mid‑year.
Casey Mashue, who signed in for public comment at the Connellsville City Council meeting on Nov. 18, urged council members to share current premium information with brokers and to seek competitive quotes before finalizing a planned switch of the city's health insurance program.
Mashue said he is with NFP and explained that while the city's recent arrangement with a self‑funded stop‑loss model (referred to in the meeting as 'PIMIC' in spoken remarks) had been the lowest cost option in prior years, marketwide premium increases have been steep. He warned council members that if the city moves carriers, the existing self‑insured program will generate termination and run‑out costs. Mashue gave a specific example: based on stop‑loss run‑out coverage, the city would face an estimated claimed deductible billing of $35,852 and an overall run‑out estimate in the $39,000–$47,000 range, depending on claims incurred before the end of the year.
He asked whether current payment levels had been shared with prospective carriers and encouraged the city to allow incumbent carriers to respond with revised quotes rather than proceeding "blind." City staff responded that quotes were obtained using the city's demographic footprint rather than the city's current paid premium, and the mayor and council noted the competitive process that had been used.
Mashue also said ancillary products (dental, disability, electronic enrollment) could remain with existing brokers even if the medical carrier changed, and he urged the council to consider seeking clarifications and additional competitive proposals before finalizing a carrier change. The council proceeded with a motion later in the meeting authorizing Ministry of Benefit Services (MBS) as the city's health insurer, but the public comment tonight highlighted potential termination and run‑out liabilities the city may face.
