HomeMy WebLinkAboutInsurance Committee Minutes 12.10.2009BENEFITS COMMITTEE
Thursday, December 10, 2009
2:00 P.M. @ City Hall
Members Present: Bill Sheridan H.P. Nuernberger
Cathy Gabrian James Huertas
Alex Wilkins Chuck Dickerson
Donnie Nelson
Others Present: Dave Allen Susan Canape
A packet was handed out with information for the committee. Bill said we need to do an
RFP and advertise. A copy of an RFP from last year was included in the packet. Jim
questioned why we are doing an RFP on exactly the same plans we have, as this will put
the insurance companies in a box. Bill said we will get an opinion from the attorney. It
was questioned what the unions' interpretation of this is. Donnie and Jim say something
comparable.
The time table for going through this process was discussed and it is very important to get
going and stay on track to meet the deadline. This committee needs to make a
recommendation to the council to go forward with an RFP. This will be on the Council
Workshop agenda for December 291H
Bill asked Dave's opinion and he said our group is not considered a large group in the
insurance world. Dave can't speak for each company but BCBS will bid this because
these were their plans. It would not be complicated to duplicate the lesser plans but it is
complicated for our custom plan. If the RFP has to duplicate our current plans, it would
limit the competition. Dave said BCBS will not allow the agents to sell the Blue Select
Plan but they could put together a comparable plan. The Benefits Committee needs to list
the options that are important to our group.
Motion by Cathy, seconded by James to make the recommendation to the Council to go
out for RFP on our health insurance. Motion carried.
Chuck Dickerson arrived at 2:20 p.m.
More discussion followed regarding what we would like to see in our plan and Jim said
each person would have their own specifics, based on their own family's needs. Dave
said it would be a really long process unless we are somewhat specific on the options.
The union members looked at their contracts and felt the RFP does not have to be exactly
what we have now but rather comparable plans.
Dave passed out information on the different plans he represents: BCBS, Assurant, New
West, Allegiance, John Alden and Clear One. It was stated the committee needs to
decide if we would only accept one bid from each company and if we already have an
agent who represents that company, we can ask if they represent any other companies
It was stated we are held hostage by MMIA, due to their March 1st deadline. In order to
look at other insurance, it would have to go through underwriting two times. Chuck
wondered if we could get a quote from Allegiance, as this would be beneficial for us with
the time crunch we are in. Dave feels that since Allegiance is the administrator for
MMIA, they would not touch it.
It was stated the city has all its insurance through MMIA but it was understood that we
could leave the liability, worker's comp, etc. with MMIA, even if we dropped the health
insurance.
Jim questioned whether we could get a better deal from our insurance. It was felt that
MMIA would play hardball. Dave feels BCBS sees MMIA as taking their business and
BCBS really wants us back. We are one of the biggest groups in the MMIA pool and
they will try to block us from leaving by using these dates.
Bill asked each union to tell us what benefits are most important to them and bring this to
the next meeting. He will try to meet with the attorney before this meeting.
The next meeting will be held on Tuesday, December 15, 2009 at 10:00 a.m.
Respectfully Submitted,
Cathy Gabrian