Village of La Grange to Change Insurance Consultants

At Monday night’s La Grange Village Board meeting, talk once again turned to the village’s employee healthcare plan, which surprised the board when Blue Cross Blue Shield increased their insurance plan by over 18 percent this year.

 The  board had previously budgeted for an increase of only 7.5 percent, and now has the village looking for funds in FEMA money coming from the blizzard this past winter.

 Trustee Michael Horvath requested that the board further discuss the matter, which was intended to be approved as part of the Village’s omnibus agenda. Horvath requested more information on why the village staff would like to hire a new insurance benefit consultant for the employee health plan.

 Village staff have recommended that the Village change its consulting service to Corporate Benefit Consultants Inc.

 “We weren’t getting the same level of service as we expected from our broker,” Assistant Village Manager Adrianna Peterson told the board.

 Peterson suggested the board change consultants to CBC, as the company has previously provided advice to village staff and comes highly recommended from other villages such as Winnetka and Glencoe.

 Peterson suggested to the board, that CBC—as a smaller company—would be more available to provide a “hands on” approach to decisions relating to changes in employee's heathcare.

 Horvath said that he worried that switching insurance consultants could delay the approval of changes in the plan, which at the increased rate would cost the village money it has not budgeted at the tune of $8,000 per month.

 “Anytime you change [consultants] people need to start from scratch,” Horvath said. “Do you think we can implement the changes and switch the broker within the 90-day timeframe?”

 Peterson that she believed that was possible.

 Additionally, CBC’s proposed plan for compensation is unique to the industry, Peterson said in a letter to Village Manager Robert Pilipiszyn. CBC will not charge the village a commission as their current consultant has, which has increased as the rate of village employee's healthcare costs have increased. CBC will charge the village a flat rate of $42,000 a year, which Peterson said will additionally save the village money this year and in following years.