2/3/1987 - Laserfiche WebLink

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F E B 3 1987 Boor I -' F' ?'?7 0�1F ?'d 7 Commissioner Eggert wished.to know if the reason those agencies came to us was that it was so difficult for them to find insurance. Chairman Scurlock advised that they came here because the premiums would be less, and Administrator Balczun agreed premiums elsewhere would be far more expensive, and the reason is that we really don't charge a premium, we eat the cost. Commissioner Wheeler believed that we are providing insur- ance for a fee to someone outside the County employ, but we are not licensed to provide insurance. Chairman Scurlock noted that actually there is an adminis- trative charge; everything else is set up as a self-insurance program. Commissioner Bird believed the situation has changed in that when they first came to us we had a group insurance plan and they joined that which gave us a larger base and spread the risk, and now we have become more self-insuring and they are still a part of the plan. Administrator Balczun advised that you really only spread the risk in merging groups if both groups have a fairly uniform distribution of employees in terms of age, health, sex, nature of work and terms of exposure, and they don't. Chairman Scurlock felt the Commission has the ability to do this if the boundaries were co -terminus, but what we are doing is taking ad valorem taxes which are collected countywide and using those potentially to subsidize the program when each of these entities has its own political boundaries and can levy its own millage rate. He felt that is where the problem is and that it probably is illegal to do it. ON MOTION by Commissioner Eggert, SECONDED by Com- missioner Wheeler, the Board unanimously authorized the Administrator to serve notice on both districts that they will no longer be able to participate in the 38