Commissioners award one insurance bid; table another

McCOOK, Neb. — Red Willow County Commissioners took little time to choose a new source of property and casualty insurance Monday morning, but then discussed a possible switch from self-insurance of health coverage for two hours without reaching a decision.

The board chose the Nebraska Intergovernmental Risk Management Association, a non-profit cooperative with more than 100 counties and other governmental bodies as members, to provide property and casualty insurance for $121,646, compared to a $294,750 bid from MNB Insurance, the current carrier, and the third bidder, the Gary Thompson Agency, $246,723.

While Chairman Ted Gans noted that the NIRMA bid provides self-insurance for a $173,000 savings, others noted that it did require a three-year commitment to the statewide cooperative.

However, after hearing from health insurance bidders, commissioners took only one action, adding an emergency item to the agenda and approving the chairman’s signature on a document to stop the underwriting process.

That action was taken at the behest of the current health insurance carrier, the Olson Group, which has handled Red Willow County’s partial self-insurance system since 2012, and would allow the group to confirm its bid setting the county’s maximum health insurance cost of $1,252,789.80, if the county says with a self-funded plan.

Signing the document did not commit the county to accept the Olson Group contract, however.

Judging by recent years, the county is expected to have a little more than a million dollars in healthcare expenses, according to Amber Anderson, Patriot Growth Insurance Services/The Olson Group said.

Also representing the Olson Group were Brad Swiggart of Northwestern Mutual and Mitch Lyster of McCook.

Other bidders included another cooperative, the Nebraska Association of County Officials, Svoboda Benefit Solutions and Cornerstone Insurance.

Bids ranged from the $1 million to $1.5 million range, with fully-funded health insurance generally costing more than the county’s self-insurance system, although Svoboda’s fully-funded bid was actually lower than a self-insured bid, and commissioners were unable to decipher the bid from Cornerstone Insurance.

Questions were also raised about one of the providers forcing patients to buy their medications online rather than from local pharmacists, with commissioners urged to take employees into consideration rather than costs to the county and taxpayers.

Gans said he had looked at neighboring counties and concluded that Red Willow is competitive once salaries and benefits are added.