A self-funded health insurance plan for the city of Winchester is about $200,000 under budget, indicating that the city's new approach to providing health coverage has proven successful, according to a report Tuesday.
Mark Morgan, president of consultant firm Sherrill Morgan, said the plan came in more than $115,000 under budget during its first year of operation in 2008-09. Since then, the program has performed even better, he said.
"There is no financial health care crisis in the city of Winchester," said Morgan. "In fact, there are reserves."
Commissioners Rick Beach and Shannon Cox spearheaded the move to a self-funded plan two years ago in the aftermath of skyrocketing costs through private firms.
In the 2008-09, the city budgeted $1.2 million for the program, but only spent around $1.1 million.
The cost of the program remained about $5,000 more expensive than a private plan quoted through Humana. But, Morgan said the city's plan provided higher quality and may have added beneficiaries, accounting for the difference.