Health-insurance costs could drop by thousands of dollars a year for Miami-Dade County government employees who cover their spouse or children, under a plan being considered next week by the County Commission. By becoming self-insured -- taking on the risk for health insurance instead of paying a private company to carry it -- county leaders believe they can cut costs by $45 million and pass on the savings.
County employees already receive free HMO coverage for themselves, but family coverage can cost $5,190 to $6,405 per year. County Mayor Carlos Alvarez believes the proposal could cut those payroll deductions by up to $4,100 per year. In particular, healthcare for children will be cheaper.
As healthcare costs rise, a growing number of large companies and government agencies are insuring themselves. However, there is still disagreement on how much risk is involved and how much money is saved.
Howard Gruverman, president of EDIFY, a Fort Lauderdale healthcare consulting firm, said the risks are probably small because healthcare costs tend to be predictable with such a large group -- the county covers nearly 27,000 employees and can base its predictions on the last 15 to 20 years of coverage. The county will also buy a "stop-loss" policy to cover extreme claims.
"We're still going to be lower than we ever would have been with a fully-insured HMO," said Wendi Norris, director of the county's General Services Administration.
http://www.miamiherald.com/103/story/29944.html
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