City of Greenville employees will return to a familiar name for their health insurance.
“Today, my vote was a vote for the city employees and their families to return back to Blue Cross Blue Shield,” Greenville Mayor Errick Simmons said after a budget session on Thursday.
The Greenville City Council voted 3-3 with Simmons’ vote serving as the tie breaker to contract SouthGroup Insurance/BXS Insurance as the city’s employee health insurance provider. This change goes into effect at the start of the new fiscal year beginning Oct. 1
SouthGroup Insurance Services/BXS Insurance will serve as broker between the city and Blue Cross Blue Shield of Mississippi. The council’s decision was by no means a quick and easy one after hearing employee health insurance proposals from broker service providers SouthGroup Insurance Services/BXS Insurance, i-One Benefits Group and Nick Floyd & Associates — the city’s current provider during their Aug. 16 budget session.
“Not only does the city enjoy a savings of an estimated $300,000, it also supports our local doctors, medical community and clinics here that take Blue Cross Blue Shield,” Simmons said of the insurance provider. “The claims experiences will be better for our employees and their families and hopefully we will have better healthcare and create a healthier city population by and throughout our city employees.”
Before putting the matter to a vote, council heard from Human Resources director Ron Thomas, external financial consultant Steve Osso as well as the feedback from employees in various departments about their healthcare experiences with the current provider.
Responses and feedback regarding the current employee health insurance provider were mixed with some saying the premium was too expensive and others saying they were pleased with the current provider.
However, there was no consensus to be had when it came to a motion made by Councilwoman Lurann Thomas-Kingdom to retain Nick Floyd & Associates as the city’s employee health insurance provider which was seconded by Councilwoman Lois Hawkins.
The result of the vote was 3-3 with Thomas-Kingdom, Hawkins and Councilwoman Tasha Banks voting in favor of Nick Floyd and Coucilmen Al Brock, Vernon Greenlee and Vice Mayor James Wilson voting opposed. Simmons broke the tie and voted opposed.
Wilson’s substitute motion to select Blue Cross Blue Shield died for lack of a second and was followed by an in-depth discussion of self-funded versus fully funded plans.
Wilson, as well as Greenlee, conceded that all of the proposals came with really good benefits overall, but the cost savings to the city had to be strongly considered.
“I see that everybody’s offer is good, but when I look at it from a cost savings measure, I see something different and my whole objective with where we’re at now, is looking at cost savings and benefits,” Wilson said, acknowledging that Nick Floyd & Associates are not responsible for the increased rate United Healthcare gave.
Thomas-Kingdom said in her opinion, United Healthcare has been a great provider in her experience.
“They’ve given us the $50,000 life insurance and I’m sure now that if we look into it, it’s free of charge. They’re providing dental and vision for us, all of my medication is free and I particularly love the services United Healthcare has provided,” she added.
Brock said personally, it was a clear choice that the city needed to part ways with its current carrier.
“Our current carrier is increasing their premium cost to the city of $86,000 and the other options, or other two companies provided various options where the city’s savings can range anywhere from $120,000 to $600,000,” he said to fellow council members. “Obviously, our goal is to do what’s best for the taxpayers and certainly provide a quality, affordable insurance to our employees.”
Hawkins pointed out that the self-funded plan has brought the city to where it is currently from a place of not having the funds to cover the additional expenses.
“No one can predict how many people you’re going to have to get sick and they don’t know how many claims they’re going to have,” she said.
Greenlee favored the self insured proposals and the Blue Cross Blue Cross Shield plan — one he has had nearly all of his life.
“Since we’ve had Nick Floyd & Associates, we’ve gotten at least $1.2 million back. I know we can’t give raises across the board, but the least we can do is give these people some good benefits,” Banks said. “This comes with dental, eye, disability and a $50,000 life insurance policy.”
Thomas acknowledged the history with self-funded plans as it pertains to the city and the exposure that comes with it.
“However, this Blue Cross Blue Shield is fully funded, so it’s capped — it’s not one of those that’s going to run off and we end up paying double what we agreed to,” he explained. “And, the insurance has a reinsurer which makes sure we don’t pay any thing more than what we contracted.”
Thomas also noted an ongoing employee life insurance plan negotiation with Cigna who has now been bought by New York Life and entails an upgrade from $15,000 to $25,000-$30,000 at a fee less than $10 that was already being covered by the City.
After being asked what his recommendation would be, Thomas responded, “My recommendation would be Blue Cross Blue Shield. They have a lower copay and the overall premium for the employee is lower.”
He noted the city would incur the bulk of that because the employees would only pay $35.
Essentially, with United Healthcare, the city would incur roughly $596 and with Blue Cross Blue Shield, $464.
Before a motion was made, Simmons said, “This insurance is not our insurance, this is your insurance and we want the best insurance for our employees.”
Wilson, once again, made a motion to select Blue Cross Blue Shield with Greenlee seconding.
The previous result was repeated and Simmons’ vote, again, served as the tie breaker in favor of Blue Cross Blue Shield (SouthGroup Insurance Services/BXS Insurance).
