PMHIC Pennsylvania Municipal Health Insurance Cooperative

Pennsylvania Municipal Health Insurance Cooperative

A Proven Method to Control Health Care Costs
Municipalities Working Together To Lower
Health Benefit Costs Through Self-Funding


If your organization is struggling with the high cost of health insurance for your employees, consider the Pennsylvania Municipal Health Insurance Cooperative (PMHIC) program. This unique, self-funded program helps you lower costs by eliminating insurance company profits. The program eliminates typical self-funded cash flow concerns and protects you in both good and bad years. As a result, it allows you to enjoy savings, transparency, and greater control over your future.

As a member of PMHIC, you will:

  • Retain premium dollars that typically go to the insurance carrier (SURPLUSES)
  • Save up to 50% on your administrative costs
  • Experience low, stable renewals
  • Effectively position your municipality to secure multi-year savings
  • Obtain low-cost dental, vision, life, and disability coverage

As a PMHIC member you will:

  • Have greater flexibility to change benefits to meet the needs of your local government
  • Have benefits provided by leading insurance companies that offer excellent customer service
  • Attain claim risk that is well-defined and limited…no assessments
  • Know your pricing and renewals are set appropriately by actuaries that work for you
  • Own and have a voice in the running of the cooperative

As a member of PMHIC, you will:

  • Know where every dollar is spent for claims, administration, and insurance protection
  • Learn what is causing your claim utilization through detailed claim data
  • Receive a full accounting of the performance of your plan
  • Know how your rates are developed and what's driving your next renewal

The cooperative will provide a member with:

  • A cap on claim liability
  • A fixed monthly budget amount based on enrollment
  • Stability in renewals
  • Significant protection when experiencing a "bad" claim year

The cooperative will provide a member with:

  • Nurse navigation services through ConnectCare3
  • A billing system that is customer-friendly and understandable
  • Assistance with the Affordable Care Act regulations
  • Personnel with experience in negotiating union contracts
  • A two-day seminar for all your health benefit needs

PMHIC Claim Fund Performance Results

2007 2008 2009 2010 2011 2012 2013 2014 2015
PMHIC Employers: 101 131 156 165 184 200 213 230 249
Surplus Return: $5.1M $8.3M $8.6M $8.9M $12.6M $13.5M $16.7M $19.4M $19.3M
Average Return: $49,948 $63,632 $55,469 $54,003 $68,679 $67,754 $78,578 $84,138 $77,676
Total Return Since 2006 $117,745,469