Erie County to study regional group health insurance captive after consultant finds sufficient interest

Tris Felix, Managing Director of Cornerstone Risk Solutions, and Sam Burns, the firm's Alternative Risk Solutions Leader, presented Phase 1 findings on June 10, 2026, urging Erie County to pursue a formal feasibility study for a regional group health insurance program.

Felix said the program's goals would be to give participating entities greater control, accountability and flexibility over health plan services, improve employee medical outcomes and encourage mutual aid among public entities. He described how the county's current self-funded approach — where each employer buys stop‑loss coverage and pays claims up to a deductible — differs from a proposed "fronted" group captive that would pool primary claims risk and reinsure the first roughly $300,000 per claimant.

Burns said group captives require strong reserves and long‑term commitment from members. He told commissioners that Cornerstone estimates a minimum of about 1,000 enrollees and roughly four to five plan sponsors would be needed to support a captive, with a longer‑term enrollment goal of about 2,000 lives to improve stability.

Cornerstone reported that 16 entities responded to an initial interest survey, including six organizations with at least 50 employees enrolled in health plans; Medical Mutual and Anthem were the two most common carriers identified. The consultants said three respondents already participate in a captive or group arrangement.

Based on the intake analysis and survey, Cornerstone recommended moving to Phase 2 — a formal Feasibility Study and Business Plan that would include an actuarial rate study, captive facility selection, governance charter development, stop‑loss carrier proposals and third‑party administrator procurement. The firm estimated Phase 2 would take about 90 days and cost $20,000; Cornerstone noted consulting fees could be credited toward Phase 3 if the program moves to launch.

City Manager John Orzech said the City of Sandusky recently joined a captive with a 60/40 split and currently contributes about $200,000 annually; Burns added that Sandusky participates in a large national captive covering roughly 1.4 million lives. Perkins Township Administrator Gary Boyle said his township has seen favorable premium performance recently and would need to compare projected captive costs against its current carrier before joining.

Commissioner Old said rising health insurance costs were a common concern identified during the Blue Ribbon Commission process and expressed support for a deeper feasibility study. Commissioner Shoffner said the Phase 2 investment would be worthwhile to obtain accurate cost projections. All three commissioners agreed to proceed to Phase 2.