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Council approves joining Western Michigan health insurance pool; staff and consultant say savings expected
Summary
Holland City Council approved a resolution to join the Western Michigan health insurance pool and a business-associate agreement. Staff and Gallagher estimated about 9.31% savings (roughly $400,000–$500,000) and said employees would keep current plans and providers.
Holland — The Holland City Council voted Aug. 20 to authorize the city to join the Western Michigan health insurance pool and to enter a business-associate agreement with the pool’s administrator.
City Human Resources staff presented the item as a fiscal and administrative step to move the city — and the Holland Board of Public Works separately — from a decades-long self-funded insurance arrangement into a membership pool. “We have a self funded insurance plan for the last 3 decades,” Jennifer Orme said, explaining the city currently retains claims up to a stop-loss level and buys stop-loss coverage at roughly $130,000 per claim.
Chris Glass, a consultant with Gallagher, presented the pool’s structure and the expected fiscal effects. He said the pool is comprised of public entities only and now includes more than 230 members across the state, covering roughly 25,000 employees. Based on an analysis for 2025, Gallagher estimated “roughly 9.31% savings or around $400,000 to $500,000” from lower indirect costs, while allowing the city to keep current benefit carriers such as Priority Health and Delta Dental if it chooses.
Council members asked for details on projected rates and on how runout funds from the city’s existing self-funded plan would be handled. Staff said the precise rates for the coming calendar year remained under analysis and would be presented to council in October; they also said runout balances would be retained for employee-benefit purposes and not swept into the general fund.
Councilmember Rowan said the June study session had thoroughly vetted the proposal and expressed support. Councilmember Freeman asked for an estimate of next-year plan-rate increases; staff said FY26 budget assumptions were still being finalized but that the move should put the city under budgeted projections.
The motion to adopt the resolution and include the business-associate agreement passed on a roll call vote. Mayor Box and staff said the formal rates that will take effect Jan. 1 will be brought back to council once Gallagher and city finance complete calculations.
Next steps include returning to council with finalized rates and details about how runout and transition accounting will be handled.
