Revised on April 20, 2012
Is there an administrative cost for joining GIC coverage?
Yes; as authorized by Section 19 and Section 23, the GIC charges an administrative fee of up to 1% of total premium per year. This fee is determined by the GIC Commission each March as part of the fiscal year premium rates determination, and is subject to change annually. This fee pays for the GIC’s systems, operations, communications, customer service, and other services needed to accommodate and cover the Municipal Employers’ subscribers each year.
Will the administrative fee be included in the Municipal Employers’ and their subscribers’ share of health premium?
Yes, the law requires that the fee be included in their respective health premium rates.
May brokers’ fees be factored into Municipal Employers’ and their subscribers’ premium contributions to GIC coverage?
No. Since the GIC and its consultant will be performing the services that brokers perform, there will be no need for any brokers’ fees. The GIC prohibits the payment of any such fees.
What will happen if the city, town, or other political subdivision self-insures, and has a deficit in the claims trust fund at the time of transfer?
If the deficit is attributable to a failure to accrue claims which had been incurred but not paid, the political subdivision may capitalize the deficit and amortize the amount over a period of not more than ten fiscal years. Only claims incurred on or after the date of transfer may be covered via the GIC.
This information provided by the Group Insurance Commission.