Jerome to Withdraw from Health Insurance Fund [The Times-News, Twin Falls, Idaho]

Jan. 18--JEROME -- The city of Jerome plans to withdraw from a health insurance fund over concerns about rising costs.

After an executive session Tuesday night, the city council decided to break ties with the Idaho Independent Intergovernmental Authority, effective Jan. 31.

City spokeswoman Zoe Monahan said they'll request to withdraw without a penalty and will challenge any penalty the IIIA imposes.

Jerome and about 38 other Idaho cities are part of the fund, acting as their own insurer for employee health benefits. They pool monthly premiums into a health insurance fund.

Now, Jerome officials plan to enlist in group health coverage for employees from Blue Cross of Idaho. That will be effective Feb. 1.

Jerome city administrator Polly Hulsey said during the city council meeting Tuesday that they've been part of IIIA for nine months.

The cost of premiums went up 19 percent in December and a 35 percent increase is expected this month. There have also been issues with claims, Hulsey said.

The group was hit with 11 claims in its first 40 days of operation. As a result, pool members have to kick in extra to shore up the account.

Jerome isn't the only city to express concerns about increases in premiums.

The topic came up last month during a Burley city council meeting. The city could face a $1 million penalty if they decide to pull out of IIIA.

Burley city administrator Mark Mitton didn't return a phone call for comment Thursday.

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