New Health Insurance Agent Saves his Town… $60,000

Brian Anderson

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How’d you like to have your hometown newspaper run a headline like this?

New health insurance agent saves Clarksville cash
Initial pricing shows future savings of $60,000 per year

CLARKSVILLE, Ind. — The town of Clarksville stands to save money from a decision that was made in early January to switch health insurance agents. Council President Paul Fetter said that the initial pricing was completed and showed a future savings so far of $60,000 per year for the town…

The new administrative cost for health insurance for town employees — there are around 180 — was $32.20 per employee, per month with the previous agent, Fetter said. The new rate is $7 per employee per month and began Feb. 1.

“Basically after reviewing the contract and the services that are provided, we just felt that we could do that,” [Rick] Zoeller, vice president of Assured Partners NL said. “The question is not our pricing, the question is the prior. And I don’t know where they came up with that.”

New health insurance agent saves Clarksville cash | News | newsandtribune.com
 
How’d you like to have your hometown newspaper run a headline like this?

New health insurance agent saves Clarksville cash
Initial pricing shows future savings of $60,000 per year

CLARKSVILLE, Ind. — The town of Clarksville stands to save money from a decision that was made in early January to switch health insurance agents. Council President Paul Fetter said that the initial pricing was completed and showed a future savings so far of $60,000 per year for the town…

The new administrative cost for health insurance for town employees — there are around 180 — was $32.20 per employee, per month with the previous agent, Fetter said. The new rate is $7 per employee per month and began Feb. 1.

“Basically after reviewing the contract and the services that are provided, we just felt that we could do that,” [Rick] Zoeller, vice president of Assured Partners NL said. “The question is not our pricing, the question is the prior. And I don’t know where they came up with that.”


It's surprising they stayed with the same agency. Although, I believed they purchased that agents book of business a few years ago from what I heard.
 
Something does not make sense here, not saying the article is wrong or the situation is wrong. Just cannot understand what was written.

When discussing administrative expenses it is usually done within the context of a self-funded plan, not an insured. The savings of $60k also happens to be the savings due to the reduction discussed in the article. So if this is a self-funded plan it would seem to me to be impossible to operate on the reduced amount.

What am I missing?
 
Why surprised they stayed with the old broker? I'm surprised they actually looked at competitive prices. Townships, schools stay with their brokers forever.
 
Why surprised they stayed with the old broker? I'm surprised they actually looked at competitive prices. Townships, schools stay with their brokers forever.

The headline says "new insurance agent" when in reality it's the same company that they were with.

I was surprised because the article gives you the impression that the old agent didn't do a very good job because the city was paying more than they had too. The agent quoted in the article couldn't explain where the previous fee came from.

Usually when someone doesn't do a good job, you lose the account.

It's possible another agent from another company probably pointed out the city could be saving money, the city informed the current company who took a look at it and agreed so they wouldn't lose the account.

I agree with you though. I'm not really "surprised". Just surprised at how it was presented to the public.
 
Just came across another article about a health insurance broker saving his town big money on city employee health insurance - this time reportedly around $2.3 million. Not bad publicity in your hometown...

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