MERS Premier Health Board votes to close MERS Premier Health; other programs unaffected.

The MERS Premier Health (MPH) Board voted last Thursday (July 30) to close MERS Premier Health as of January 31, 2010. Premier Health is a trust with a governing body that is separate and apart from the MERS Board, as required by state law.

Due to rapidly rising health care costs, many MERS members began asking the MERS Board in 2002-2004 to look at providing a statewide health care pool. As a result of those requests, MERS undertook a full exploration of a range of health care program possibilities. Following a comprehensive feasibility study, MERS formed four individual programs — MERS Premier Health, Group Life and Disability insurance (through The Standard Insurance Company), the MERS Retiree Health Funding Vehicle and the MERS Health Care Savings Program. Premier Health was licensed by the Insurance Commissioner in late 2004 as a voluntary plan, a trust whose reserves and governing body were separate from MERS.

These four programs – Premier Health, Group Life and Disability, RHFV and HCSP-- have proven to be extremely beneficial for MERS members as well as non-members. For Premier Health, it is very difficult to quantify the actual dollar savings as a result of lower rates, but we know MPH introduced competition and provided substantial savings.

In 2005, MERS began quoting rates for MPH. During the past four + years, MPH grew to a high of 70 municipal members. The program had a dramatic effect of reducing the quoted rates as part of the competitive process. Yet after its peak, the health plan experienced declining enrollment and rising claims costs driven by several factors, including the economy and additional competitors.

The MERS Premier Health Board reviewed the sustainability of the plan going forward, as part of their due diligence, and determined it was necessary to discontinue the plan effective January 31, 2010. While we are very disappointed in this outcome, we gave it our very best efforts.

Even though MPH is closing, the other MERS programs are thriving and experiencing steady, regular growth. With our retirement plans at the core of our business, we bring our passion and our expertise to a full complement of programs that enhance both retireeand employee benefits.

Often in life we are surprised at what works and at what doesn't quite turn out as anticipated.Our gratitude goes to the following:

... the MERS Board, who had the vision and foresight to sponsor the MPH effort to begin with;
... to the MPH Board, who believed in our efforts and worked diligently along side of staff to put the program in place;
... to those of you who gave us the opportunity to make presentations;
... and most especially to those municipalities who believed in us, took a chance and joined MPH.