Keys Energy Services Caps Health Insurance Costs with FMPA-Facilitated Program
ORLANDO, Fla., August 28, 2003 – Keys Energy Services (KEYS) will cap health insurance costs this year by participating in a self-insurance program facilitated by the Florida Municipal Power Agency (FMPA).
The Utility Board voted unanimously on Wednesday to participate in the FMPA-facilitated program, the Florida Joint Action Health Initiative (FJAHI). Their decision will benefit KEYS by reducing health insurance costs while maintaining a flexible, customized benefits plan.
By working together through FJAHI, municipal electric utilities like KEYS can gain economies of scale to negotiate more favorable rates and coverage. For example, KEYS, which pays health insurance for its 154 employees, was facing a 17.6 percent rate hike this year if it opted to remain with its current carrier and maintain existing benefits. By selecting a self-insurance plan with stop-loss insurance limits, KEYS will save an estimated $244,000 for its ratepayers this year, while retaining the same level of coverage.
Also, dependent health insurance will decrease by 5 percent, which will save an estimated $104,000 for the more than 100 KEYS employees who purchase it. These savings in particular have drawn praise from KEYS workers’ union, the International Brotherhood of Electric Workers, which supported the change in plans.
KEYS’ new self-insurance plan also will offer greater flexibility to best meet employees’ needs. Although the FJAHI purchases insurance services as a group, each utility selects its own benefits plan from a wide variety of options. Rates are developed separately for each participating city, based on its individual claims history. Local healthcare networks will be established to suit each utility’s community.
In September, FMPA’s Executive Committee will vote on approval of the FJAHI. KEYS’ plan will go into effect on Oct. 1. Several other Florida cities are currently evaluating or preparing for bids, and the program is open to all FMPA member cities at any time.