ANDERSON — For some city employees, a notice dated Dec. 22 that they would be under a new health insurance plan as of Jan. 1 came as a surprise.
The city signed a contract with Indianapolis-based Wabash American Insurance and terminated its deal with Anthem Insurance at the end of the year in a move that Personnel Director Steve Priser said likely would save employees and the city money.
“I’ve always tried to shop the insurance to find the best deal,” Priser said. “(Wabash) had what we determined to be the best price, a lesser price than what we’ve been paying.”
But some employees and City Council members were suspicious of the deal, saying they didn’t know why they received such short notice that their insurance would change.
“I’m confused as everyone else,” Councilman Rodney Chamberlain said. “I didn’t know we were even looking to change insurance carriers.”
Chamberlain, who is on the council’s Health Committee, said as a public official, it’s important for him and other council members to be informed of city decisions so they can answer their constituents’ questions.
“Being a council representative, we should have been notified that we were even thinking about it,” he said. “When people ask questions I should have some answers or have some knowledge of why we’re doing it, but it was just a done deal.”
Chamberlain also said the council should have been made aware of the change since it is responsible for the budget that pays for health insurance.
The decision on what insurance carrier to use came out of Priser’s office and doesn’t have to be approved by the council. Priser said the short notice was because he has no control over when the city gets the bids back from competing insurance carriers and the city must wait until the end of the year to receive the maximum savings.
The city received four bids for health insurance, from Wabash American, Anthem and companies in Fort Wayne and Anderson. Priser solicited the bids when he saw earlier in the year that Anthem rates would increase.
“We should enjoy a fairly significant cost savings,” he said. “We’re very confident that it will improve bill paying, and claims administration will be sped up. We’re very comfortable with this change.”
Councilman Art Pepelea Jr., however, is not comfortable with the sudden switch and has requested for Priser to present details of the bids at Thursday’s City Council meeting.
The insurance plan’s design hasn’t changed, Priser said, a decision that would have required council approval.
Chamberlain said a different insurance carrier could be a big adjustment for some city employees.
“I’d just like to know our rates as a city employee compared to our rates now,” he said. “Is it cheaper? More? Nobody’s given us those answers.”
For more information:
Personnel Director Steve Priser will present details on the city’s new insurance carrier at the City Council meeting 7 p.m. Thursday in the Council Chambers of the City Building.
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City employees confused by insurance change
Priser: City should see cost saving from new carrier
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