City considers self-funded insurance plan
By SHANNON CRABTREE scrabtree@leader-news.com

El Campo City Council is trying to decide if returning employees to a self-funded insurance plan will save money and offer benefits.

Although the city had sought bids on fully funded insurance programs, Entrust, a Houston third-party administrator that acts as the insurance company for its clients, offered a selffunded package and requested Council consider it Tuesday night.

The package could be approved without seeking additional self-funded bids, Council was told, although City Attorney Ronny Collins urged them to consider honoring the process.

With self-funding, the city would create a funding pool to cover costs rather than pay the larger premiums of a fullyfunded program. Deductibles on self-funded programs can be monthly or yearly.

"It protects your maximum exposure. I don't want you to think you're hanging it out there in the wind," Entrust Vice President David Jacobson said.

Benefit plans can be tailored for specific hospital use. Jacobson told Council they could create a plan where users would be offered an extreme discount to use El Campo Memorial Hospital, but the pay higher (normal) rates anywhere else.

ECMH uses the plan, according to ECMH Administrator Steve Gularte, but added he can offer local service to his people at cost - a benefit the city probably won't be able to provide. The hospital has used Entrust for its insurance administrator for eight years, and Gularte said he's been pleased with the program.

Mayor Philip Spenrath appointed himself, Councilwoman Gloria Harris and Councilman Ed Erwin to meet with the city's consultant, Burke Sunday, to discuss health plans and have a recommendation Sept. 9.

The city's current health plan expires by Oct. 1.

"Speed is of the essence," Sunday said.

Five years ago, the city dropped self-funded insurance based on Sunday's advice.

"We've done all right, but at the same time with our small numbers we've really been living on the edge," City Manager John Steelman said.

The problem, staff told Council at the time it dropped self-funding, was the relatively small numbers of employees making it difficult to adjust during "bad" health years.

In 2003, the city had 100 employees. Five staff members have been added since then.