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What's Up Huntsville Lake of Bays July 2011 - Whatsupmuskoka.com

What's Up Huntsville Lake of Bays July 2011 - Whatsupmuskoka.com

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<strong>Huntsville</strong> goes solo on employee benefits<br />

By Karen Wehrstein<br />

After traditionally pooling with the<br />

District <strong>of</strong> Muskoka and the other area<br />

municipalities to provide extended<br />

health, dental and disability plans for its<br />

employees, the Town <strong>of</strong> <strong>Huntsville</strong> has<br />

abandoned the arrangement to contract<br />

with an outside provider.<br />

“We’ve been involved with the district<br />

for a number <strong>of</strong> years,” says town councillor<br />

Chris Zanetti, who heads up<br />

<strong>Huntsville</strong>’s corporate services <strong>com</strong>mittee.<br />

“We thought that we should shop it<br />

and see if we could get a better rate and<br />

we certainly found that: a savings <strong>of</strong><br />

about $30,000. That’s substantial, so we<br />

opted out <strong>of</strong> the district plan.”<br />

According to Zanetti, Selectpath Benefits<br />

& Financial is able to provide the<br />

same benefits package to town employees<br />

for that much less cost. The move was<br />

passed by the <strong>com</strong>mittee on May 30 and<br />

town council on June 20. It <strong>com</strong>es into<br />

effect immediately.<br />

An amount <strong>of</strong> about $230,000 that<br />

was being held in an insurance reserve<br />

fund by the district for the Town <strong>of</strong><br />

<strong>Huntsville</strong> will also be returned to the<br />

town. Zanetti says it will be continue to<br />

be kept as an insurance reserve.<br />

Stephen Cairns, <strong>com</strong>missioner <strong>of</strong><br />

finance and corporate services, continues<br />

to believe the strategy <strong>of</strong> pooling insurance<br />

money is best. “If you’re self-insured<br />

and have a fairly regular and predictable<br />

cost, you save in not paying the middle<br />

man,” he says, explaining that the district<br />

“We thought that we should<br />

shop it and see if we could<br />

get a better rate ...”<br />

hires an outside agency to manage the<br />

program, but otherwise no administration<br />

fee, extra overhead or pr<strong>of</strong>its are<br />

drawn from the funds. “We pay the actual<br />

cost rather than an external premium.”<br />

Cairns is not concerned about one<br />

town leaving the plan. “<strong>Huntsville</strong> not<br />

being there is not going to materially<br />

affect us one way or another,” he says.<br />

Cairns notes the district and the<br />

municipalities, other than <strong>Huntsville</strong>,<br />

will be putting out a request for proposals<br />

for life and long-term disability insurance<br />

for employees. Selectpath will be<br />

one <strong>of</strong> the carriers it approaches, he says,<br />

since it’s one <strong>of</strong> the main carriers.<br />

“We might find a similar saving,” he<br />

says, noting that the request will go out<br />

once all relevant information is gathered<br />

from the municipalities.<br />

But he feels the medical and dental<br />

plans should stay in the shared self-insurance<br />

program.<br />

“I’d have to have a very good documented<br />

business case to move away from<br />

that concept, because it’s served us well in<br />

the past,” he says.<br />

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www.whatsupmuskoka.<strong>com</strong> <strong>July</strong> <strong>2011</strong> 7

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