City of Canandaigua (population 10545)
Name of service/government operation: Finger Lakes Health Insurance Trust
Form of sharing: Shared purchasing of health insurance services by a consortium of municipalities
Services affected: health insurance
Year started: 2011
Partners: Monroe County towns of Brighton, Chili, E. Rochester, Fairport, Henrietta, Penfield, Perinton, Pittsford, Webster. Ontario County Town of Victor, Cities of Geneva and Canandaigua.
Primary goal(s)/motivation(s): To provide health insurance benefits for municipal employees at rates lower than available on the open market, with plans that controlled by the Trust, rather than insurance companies.
What planning process preceded the sharing? The muncipalities met with each other and with an insurance brokerage to develop the plans and seek competitive bids from providers.
What governance structures and/or agreements are required to maintain this agreement? Inter-Municipal Cooperation Agreement, formation of Trust and Membership Agreement
Challenges: Some municipalities that had orginally agreed to participate made individual "side deals" with the insurance company that lost the bid, for lower rates than the consortium had obtained through bidding.
Benefits: More control over the plan offerings, more stable rates.
Impact on budget: Reduced increases in medical insurance expenses.
Impact on labor: None
Impact on service: Employees won't be removed from health insurance plans that the insurance company has decided to stop offering, because the Trust owns the plans.
Key contact: Victor Town Supervisor Jack Marren