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Commissioners flag risk of multi-year rate guarantee if county switches carriers
Summary
Commissioners cautioned that selecting Makos three-year contract could reduce short-term premiums but leave the county exposed to premium increases once the carrier acquires the countys claims history. Risk, actuarial assumptions and potential volatility were discussed.
Committee member (S5) warned that switching to Mako would lock Daniels County into a three-year contract "and we're gonna have no control over what our premiums are gonna be for 3 years," making commissioners wary of short-term savings that could lead to later spikes. Several members observed that a carrier without the countys prior history may offer attractive introductory pricing that changes once claims experience is known.
Commissioner (S4) urged the county to seek annual comparisons and to ask carriers for claims-history assumptions; S4 noted that JPT had historically produced higher average increases in some materials cited (about 8.33%), which complicates the decision between short-term savings and long-term stability.
