Special Board of Aldermen Public Hearing Page 6
Mayor Donchess
Well | think the first question was do we save money as a result of being self-insured and how much
might that be?
Fred Teeboom
Okay we can.
Director Budreau
| reviewed comparable data from seven communities in Southern New Hampshire, including
Manchester. Six of them are fully insured or actually participating through Healthtrust therefore
they're paying a premium. Manchester is also self-insured. Our per employee per month rates are at
the lowest of any of those organizations. We have an upside and none of them do except for
Manchester. They upside meaning that if we’re paying what we call premium equivalence which are
less than those other communities and we have the potential of not spending all that money because
we’re self-insured as the Mayor said.
Fred Teeboom
Have you prepared what we’re paying in previous years to 2017, 2016, 2015 being insured against
the self-insured and show let’s say consistently below the cost of being insured through an insurance
company?
Director Budreau
So our costs have increased in the last four or five years by no more than 5 percent per year. The
two carriers that would do business with Harvard Pilgrim and Anthem, they maintain that same
measure for their entire book of business and that’s averaged 9 percent between the two carriers for
the same period of time. So we’ve been increasing it 5 percent while they’ve increased it 9.
Fred Teeboom
So we can verify that.
Director Budreau
Oh yes.
Fred Teeboom
So we'll verify that.
Director Budreau
| can provide exhibits through the Board of Aldermen or whatever is appropriate.
Fred Teeboom
I'd also like to see is some historical data with the insurance company is going forward independent
population that we insure versus what our costs and are we consistently below the costs if we were
not self-insured. I'll tell you $4 million is a hell of a bite.
