Self-Funded Cooperatives

Self-Funded Cooperatives

A self funded cooperative is just another intergovernmental agreement for public entities. It should be a financial vehicle to control and stratify claims costs, yet be flexible to accommodate different plan designs and bring a level of control that is rarely available in fully insured and self funded annual insurance contracts.

This is a long term vehicle meant be budgetable, stable and predictable.

Your managing partners which would include Mark III will also include legal, accounting, auditing and recordkeeping resources.

The best part of your experience is a cooperative is the ability to make decisions as an owner/partner of the cooperative rather than a customer of an insurance company.

 

Why your public entity should be…

  • Transparency is all cost elements
  • Plan design flexibility
  • Proven track record of annual adjustments in the single digits
  • Enhanced contract language
  • Mitigation of risk elements to create stability
  • Budget integrity annually
  • Owner/partner status

 

How to start a co-oP

    • Gauge public entity interest
    • Secure participation of insurance network, Rx program and stop loss
    • Develop legal documents according to state laws and regulations
    • Design cash flow through accounting firm to handle the cooperative financial obligations
    • Provide necessary underwriting protocols to maintain standard of budgetable, stable and predictable
    • Provide quotes to all interested parties
    • Support public entity management to secure board/council approval

 

How to Maintain a Co-Op

    • Provide ongoing service on a macro basis to the cooperative and micro basis to each public entity
    • Commit to quarterly meetings of the cooperative to discuss financial results and operational issues
    • Solicit new membership to be voted on by existing members
    • Promote the cooperative through participation in public entity conferences
    • Consultants to stay abreast of changing dynamics in the insurance marketplace and provide the cooperative with advice
    • Consider bringing the cooperative choices that mirror a “best of the best” mentality

 

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