Insurance-coverage consolidation should save Independence Township $15,000 a year.
‘We have several coverages including basic life, AD&D (accidental death and dismemberment), voluntary life, short and long term disability that had not been shopped or looked at in six or seven years,? said Carol Gabris, township Human Resource director.
Township broker Hantz Group checked companies including CIGNA, Prudential, Hartford, MetLife and Mutual of Omaha. It found Mutual of Omaha could save the township $1,219.15 a month in premiums, approximately $14,629.80 a year for the same coverage they have through One America/AUL. Currently, the township pays $9,600 a month, $115,200 a year.
‘In addition, Mutual of Omaha will give us a two-year rate guarantee, which will help us certainly in terms of budgeting,” Gabris said. “It will give us consistency in the language of the benefits and administration of those plans because it will only be one carrier.”
It will also provide consolidated billing, so accounting will be easier, she said.
‘It will also make changes to enrollment easier when you get new people coming into the plan because we would have one renewal day in February of each year,” she said. “It would be one open enrollment for the employees and consequently easier for us to budget our cost.?
Resident Henry Woloson commended Gabris for her efforts, but noted the ‘benefiting consultant,? Hantz Group, was located in Southfield.
‘With the number of benefit providers providing life insurance within the community, has there been any kind of recent effort to ask if there are individuals within the community with the expertise to provide some of these services, especially since many are licensed with Mutual of Omaha,? Wolson asked. ‘Perhaps someone within the community would have an incentive, desire, or opportunity to do this review much more frequently than 6-7 years and thereby save the community substantial dollars.?
Gabris confirmed Hantz Group is located in Southfield, and has been township consultants since 2005.
Trustee Mark Petterson asked Gabris if she knew to look around locally for the same service.
‘No, because this group has provided us excellent service since I’ve walked in the front door,? Gabris said. ‘They have been diligent in terms of saving us cost and because we have all of our benefits under one umbrella, it makes it consistent.”
Petterson said he would like to see them ‘get a little bit closer to home.?
‘I don’t want to see the money going down there. I’d rather see it come up here and start trying to utilize companies that are here,? he said.
Trustee David Lohmier suggested taking the current offer, but looking at local insurance brokers and companies.
‘Taking $15,000 out a year is a long ways for some of the services we’re cutting, so I don’t see why moving a step forward here is going to preclude us from our benefit brokers and others later,? Lohmeier said.
Clerk Shelagh VanderVeen said dealing with all different brokers and benefits ‘becomes onerous.?
‘I’m begging you, please, let’s do this,? she said. ‘We’re in this crisis mode now, we can save this money. I think it’s the right thing to do right now.?
The board voted 5-1 to approve the two-year contract with Mutual of Omaha. Treasurer Curt Carson voted no on the motion and Supervisor Dave Wagner was absent from the meeting.
Carson said it violates the township’s bid policy ? local venders were not included in the search.
‘I don’t think we can sit there unilaterally decide ‘this situation we’re not going to bid out and this decision we are? and who gets to decide that,? he said. ‘It’s a policy and even though this one supplier (Hantz Group) had accessed several different companies that’s not bidding it out. We need a minimum of three different suppliers, getting us bids based on specifications we give them.?