The Delaware Valley Health Trust is a regional risk sharing pool providing health & dental insurance benefits to nearly 10,000 employees and dependants of participating members. The Trust was formed under the authority granted by the Pennsylvania Intergovernmental Cooperation Law.
The DVHT began operations with fifteen charter members in April, 1999 after a two-year study conducted by the Delaware Valley Health Insurance Cooperative. The Cooperative was an intergovernmental organization formed solely to explore the feasibility of pooling employee benefit risks.
DVHT is governed by a Board of Trustees comprised of a representative from each member municipality. The governing body of each municipal member selects an appointed or elected official to serve as a Trustee on the Board of Trustees. Each municipality receives one (1) vote on the Board; voting is not weighted. The Trustees elect five officers to serve on an Executive Committee that provides management oversight to staff and professional advisors on a monthly basis.
Funding and Financial Information
The Trust is funded by annual member contributions determined by the trust's actuary and underwriting consultant, in amounts necessary to pay expected claim costs, administrative expenses, and a recommended risk margin. The Trust's financial statements are prepared in conformity with generally accepted accounting principles using a full accrual basis of accounting.
The overall financial condition of the Delaware Valley Health Trust continues to meet or exceed original expectations. DVHT is well positioned for continuing to meet its two long term goals of: 1) maintaining an insurance program managed by municipal officials, offering meaningful coverage designed to prudently protect municipalities from loss, and; 2) maintaining a financially secure product which is consistently priced year after year.
Excess funds are returned to members through two methods or programs: multi-trust discounts and rate stabilization fund (RSF) credits.
As of January 1, 2008, all three trusts began offering multi-trust discounts as a reward for participating in more than one trust. Should a DVHT member decide to also join the Delaware Valley Insurance Trust (DVIT) and/or the Delaware Valley Workers' Compensation Trust (DVWCT), the reduction in benefit premium contributions would be 1% to 2%. The municipal participant would also receive a comparable reduction in premium contributions from DVWCT and / or DVIT.
The Trust also offers contribution credits through a rate stabilization fund (RSF). Members have the option to use the credits allocated, to reduce annual premium contributions due, or to roll the balance forward to future years. In effect, the RSF allows each member the discretion of choosing the most opportune time to apply their own rate relief. If the RSF balance is rolled over to future years, the Trust will add interest, and, if approved by the Trustees, an additional year's allocation to the balance. DVHT has allocated $9.5 million to the RSF since 2004.
Trust Professional Advisors and Support Organizations
Risk & Benefit Plan Consulting
Insurance Buyers Council, Inc. Cockeysville, MD
The Segal Company, New York, NY
Geoffrey L. Beauchamp, Esq., Willow Grove, PA
Wachovia Securities, Hartford, CT
Citizens Bank, Plymouth Meeting, PA
Claims, Provider Networks and Reinsurance:
Aetna, Inc., Blue Bell, PA
Bee, Bergvall & Company, Warrington, PA