Eleven Massachusetts colleges and universities are teaming up to form their own health-insurance company, which will serve a total of 8,900 employees and their families. The idea is to save these workers money on their premiums.
The Boston Globe reported that the initiative, called Educators Health LLC — or EdHealth — lets the schools “bypass commercial insurers by pooling their risk and money, and paying claims from that pool.”
“If they can keep employees healthy and insurance claims low, the schools can keep the savings. Since the initiative was launched two years ago, the colleges combined have saved at least $10 million from what they were paying before and limited average insurance premium increases to less than 1 percent, compared with 7 to 9 percent increases for employers nationally.”