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TML Intergovernmental Employee Benefits Pool Mission Statement:
To provide excellent service offering competitive health benefits and administrative services to eligible municipalities and other governmental entities in Texas by utilizing innovative, viable and affordable alternatives while maintaining financial integrity.
Overview of Basic Operations:
The Pool consists only of political subdivisions, primarily municipalities, which join together through Interlocal Agreements to provide health benefits to employees, officials, retirees and the dependents thereof. Provider agreements are in place, which enable the Pool to obtain services and DME at a discount. Economies based on provider contracts are passed on to Pool participants in the rate setting process. The Pool also provides Administrative Services only to political subdivisions, which self-fund their health benefits. As of October 2008, the Pool services 694 Members.
Financial Stability:
TML IEBP works consistently to manage the financial integrity of the Pool. TML IEBP strives to maintain operation costs which do not exceed 15% of its total revenue. Member equity may be used for rate stabilization during periods of unusually high claims experience. The Membership has consistently emphasized the request for rate stability, and TML IEBP works diligently to manage contribution rates.
Benefit funding levels for manual rates are affected by geographic area, employee age/gender, plan design, medical inflation and medical utilization. Every three years an external actuary audits TML IEBP's funding levels, manual-rating system and network discounts to ensure fiscal integrity. The Pool purchases individual and aggregate reinsurance to assist in rate stabilization.
Philosophy:
From inception, the Pool's purpose has been to provide Texas municipalities and other political subdivisions with an alternative to the commercial insurance marketplace. Availability at a competitive price, coupled with excellent service is the main component of the Pool's mission. As a result, the Board of Trustees closely scrutinizes administrative costs and takes a very aggressive position towards cost containment and managed care. TML IEBP is not-for-profit and strives to maintain an operation cost, which does not exceed 15% of its total revenue.
Member service is, to a great extent, the Pool's most important offering. Political subdivisions are the Pool's clients, so our focus is specific to the needs of our Member's workforce. The Pool's benefit design reflects this specific focus and the underlying mission of availability and affordability.
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