Members of the Human Resources and Insurance Committee voted unanimously last night to direct the city’s human resources director to issue a request for proposals to conduct a study determining the eligibility of dependents receiving health and dental benefits through city plans.
Last month, city Human Resources Director Jane Gile was asked by committee members to look into costs associated with performing a study to determine the eligibility of dependents receiving benefits through city health and dental plans.
Mayor Ted Gatsas sent a letter to Alderman Bill Shea, chairman of the Human Resources and Insurance Committee, in October requesting his committee approve the study.
“It has recently come to my attention that the state of New Hampshire, through a third party administrator, conducted and completed a comprehensive dependent eligibility verification process for all state employees that participate in the benefits programs,” wrote Gatsas in his request. “To my knowledge the City of Manchester has never completed such a process and with enough notice we can run this program simultaneously with open enrollment in May 2016.”
On Oct. 7, Gile sent out an email to all city employees covered by the health and dental plans, asking if they had any dependents covered that may be ineligible. A notice was also sent home with paystubs the following week.
“We had four people contact us,” said Gile. “Two people were removed.”
On Tuesday, Gile said she contacted the state to get input on the results of its study.
“They are still trying to ascertain what savings were the result of people dropping off the benefits plans after they turn 26, and what savings were the results of the audit,” said Gile.
Gile said she contacted the same firm that conducted the audit for the state, Secova, and was given a price of $20,000 to perform a similar audit in Manchester.
“That’s based on the population of Manchester, the number of health plan participants, and how many of those participants have dependents covered by the plans,” said Gile.
Gile was asked for advice on whether a benefits audit would be beneficial to the city.
“From my perspective, I don’t think it’s a bad thing,” said Gile. “It could be helpful.”
Alderman Joyce Craig voiced concerns over the cost of an audit, with no guarantee on what type of financial return the city might see.
“If there was a company that would take a percentage (of the savings they identify), that would be fine,” said Craig.
Aldermen Shea, Craig, Ron Ludwig and Tom Katsiantonis voted 4-0 to have Gile put together a request for proposals (RFP) for the study.
“It might be an opportunity,” said Ludwig. “An RFP is an inexpensive way to get more information.”
Each of the city’s aldermen get a $5,000 yearly stipend. Eight of the 14 board members also get health and dental insurance through the city, with several of them getting family coverage, the costliest of the health plans available. The city picks up 80 percent of the cost, the aldermen 20 percent. School board members are also offered health and dental benefits.
A benefits audit performed recently in Carroll County shows such reviews can result in savings for state and local governments.
The New Hampshire Union Leader reported earlier this month that a review of Carroll County employee dental invoices found about half of the employees listed on the county-paid dental insurance plan in 2013, or 80 people, should not have been on the plan — including three deceased people on the list.
County Administrator Kenneth Robichaud said the oversights likely cost the county more than $150,000 in insurance payment coverage and led to a slight rise in the county’s insurance rates.
The audit dropped the county’s eligible employees for dental benefits from 334 to 168, and cut the monthly dental insurance bill from $11,179.67 in September 2013 to $7,326.34 this month.
He said former administrators erred in not removing employees from benefit coverage after the employees left the county’s employ — a practice that went as far back as 1993. - See more at: http://www.unionleader.com/article/20151118/NEWS0606/151119195&source=RSS#sthash.fC7R6I0F.dpuf
Source: http://www.unionleader.com/article/20151118/NEWS0606/151119195&source=RSS
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