ROGERS — City leaders are considering hiring an insurance broker to find health insurance for employees to save the city and employees money next year.
BY THE NUMBERS
Health Insurance Costs
Blue Cross and Blue Shield has been the health, dental and prescription insurance carrier for the city for more than 20 years. Premiums have risen every year. The premium rose 12 percent from 2011 to 2012 with the city absorbing the bulk of the increase.
Costs for insurance in 2011:
- Single employees paid $30.77 per month with a $300 deductible. The city paid $277.42 per month.
- For family coverage, the employee paid $73.70 per month with a $600 deductible and the city paid $628.09 per month.
- There was $30 co-pay for doctor visits.
- Pharmacy co-pay for prescriptions was $10, $30 and $50, depending on whether medication was generic or not.
Costs for insurance in 2012:
- Single employees pay $50 per month with a $500 deductible. The city pays $277.42 per month
- Family coverage rose to $100.01 per month, with a $1,000 deductible for the employee and the city paying $672.90 per month.
- Pharmacy co-pays also rose for second- and third-tier drugs. Generics remained a $10 co-pay, second-tier drugs rose to $40 co-pay and third-tier drugs rose to $60 co-pays.
- The doctor visit co-pay rose to $35.
- Dental deductible, $25 per person per year, did not change from 2011 to 2012.
Source: City Of Rogers
Aldermen, meeting as a committee of the whole Monday morning, heard from four insurance brokers.
No decision was made. The council is scheduled to select a broker during the regular council session at 6:30 p.m. today.
The city has had health insurance with Blue Cross Blue Shield for more than 20 years, said Mayor Greg Hines.
“After careful consideration we think it’s time the city hired an insurance broker to find and negotiate health insurance,” Hines said.
A Blue Cross Blue Shield spokesman said it appears city leaders are working to keep health care affordable.
“There is a lot of uncertainty in the health care insurance business right now. Companies and individuals are looking for ways to lower the health care costs,” said Max Heuer, media representative for the insurance company. We don’t know what’s going to happen until the U.S. Supreme Court rules later this week and we may not know then. The city seems to be doing the right thing.”
“Last year Blue Cross asked for an 18 percent increase in rates. We thought that was too high,” Hines said.
Hines and Jerry Hudlow, former city treasurer, negotiated the rate increase down to 12 percent, but Hines thought that was still high.
“We need someone who knows the business who can help us over the next few years,” Hines said. “We know health insurance is changing and will likely be more complicated over the next few years.”
Hines and Angela Brewer, city human resource director, talked to several brokers and narrowed the field to four companies.
“I think any of these four companies can do a good job of finding and negotiating health and dental insurance for city employees,” Hines said.
The four companies who made presentations Monday included Regions Insurance, Legacy Capital Group, Stephens Insurance LLC and Brown & Brown Insurance.
Each company was given 15 minutes to present. The representatives offered basically the same services, brokering an insurance package that fits the needs of the city.
After the basics, each company also offers a variety of other services, including keeping the city in compliance with health insurance laws, assisting the human resource director in tracking claims and other insurance related services.
One difference is the way the brokers will be paid. Three of the companies said they would make money from commissions on the insurance.
The Regions representative, James Broglen Jr., said his company would charge a flat fee for the service.
“The fee would increase based on the amount of service you would want,” Broglen said. “If we just broker your health insurance the fee would be much lower.”
Each of the company representatives said their company covers several municipalities or county governments in the state.
All the representatives said they would work diligently for the city in an effort to save as much money as possible.
Libby Primm, representing Brown and Brown Insurance, said her company has saved as much as $200,000 for clients, although she didn’t specify which clients.