The Intergovernmental Personnel Benefit Cooperative (IPBC) is an entity created under Illinois state laws, which allows municipal groups to band together for the purposes of insurance. The IPBC was established in 1979 and as of July 1, 2019 has over 130 municipalities or municipal entities as members.
The purpose of the IPBC is to provide economies of scale and risk pooling that will allow members more financial stability than offered by the commercial insurance market in a fully transparent environment. The members retain the right within the IPBC to create and change their plan design, which is often required due to the nature of bargained contracts. Members also operate as part of a larger Board of Directors to control the finances within the pool.
Long-term commitment by members to the philosophy of risk pooling has been instrumental in the success of the IPBC. Many members have been part of the organization for more than two decades. Current Board Member List.
The IPBC offers self-insured PPO, HMO, and Dental programs. Upon entering the IPBC, each community will have access to a Life/AD&D benefit as well as a multitude of other products (vision, property and casualty, long-term care, retirement, etc.). The PPO program allows members authority over plan design, but provides a unique pooling of risk among all members for individual claims between $35,000 and $500,000. Claims over $500,000 are fully reinsured. Therefore, members are responsible for claims under $35,000 and the redistributed claims cost for claims between $35,000 and $500,000. This allows for enhanced budgeting and stability from year to year.
The HMO product is also self-insured through a special arrangement. Members pay for fixed costs of capitation (monthly stipend paid to primary care physician) for hospital and Rx charges. There are several different choices of plan designs with different levels of office visit and prescription drug co-pays. All members pay the same rates based on plan design offerings.
The Dental program is self-insured, and each member has complete flexibility over plan design.