A Letter to Our Members

October 1, 2022

Dear PMHIC Members,

Thank you for being a valued customer of the Pennsylvania Municipal Health Insurance Cooperative (PMHIC). We strive to continue providing seamless service and stability to our members. On behalf of the PMHIC Board of Directors, thank you for your ongoing participation in the program.

For 2023, the average renewal increase for the 288 members of PMHIC is 8%. When developing the rates for individual members, the actuarial staff considered the following:

• Medical trend estimate (projected at 8% for 2023) • Plan designs and demographics for each member group • Claims experience for 2020, 2021 and the first six months of 2022 • Other relevant factors

Everest Re will remain as our stop loss partner for PMHIC, and we continue to stabilize the reinsurance costs through our partnership.

Your renewal is only one indicator of the total cost of your health insurance program. For the 2021 plan year, 79% of PMHIC members received a surplus. When combining surplus returns with your projected 2023 costs, many members experience level funding or decreases in their total costs.

This renewal booklet and accompanying packet include other information relating to your 2023 renewal, the PHMIC program, Benecon, your claim fund performance and dental & vision rates. Additionally, the packet contains information regarding an important meeting of the Board of Directors where we need you to complete a ballot and a proxy form. We hope you take a few minutes to review this important information.

We appreciate your participation in PMHIC and look forward to serving you in 2023. We sincerely hope that you, your families and employees continue to remain safe and healthy.

Sincerely,

Michelle Joy VP Account Management Fred Bean VP Program Management