Hobart seeking bids for health insurance

By Karen Snelling / Post-Tribune staff writer



HOBART — The city is seeking proposals for health insurance broker services and claims administration for the first time in more than a decade.



Mayor Linda Buzinec announced this week that the proposals are being sought.



The mayor’s decision to seek competitve bids comes on the heels of City Councilman Thomas Ehrhardt’s push to revise the city’s health insurance program and cut costs.



Ehrhardt, chairman of the council’s Insurance Committee, suggested Hobart follow the example of other communities that solicit proposals from third party health administrators.



“For the best possible cost to the city, we must provide for an open-bid process for our health insurance,” Ehrhardt said in Sept. 28 letter sent to the mayor and other council members.



Administration of Hobart’s health insurance program has been handled by Gary Fischer, president of TPA One, for more than 14 years, the mayor said.



Fischer’s Valparaiso company serves as a third-party health administrator that seeks coverage and processes insurance claims for city workers. Buzinec said her office has received unsolicited proposals in the past, but there has been no formal bid process.



Councilman Carl Lindsey said competitive bidding allows the city to be fair and responsible with taxpayer dollars.



The deadline for responding to the city’s proposal request is Nov. 1.



Along with soliciting proposals, Ehrhardt’s plan to revise the city’s health insurance program includes recommendations that could hit the pocketbooks of city workers.



The 1st District councilman also wants the monthly health insurance premiums paid by more than 200 Hobart employees raised from $2 to $25.



He also thinks the $250 yearly deductible should be increased.



Deductibles would jump to $500 for individuals and $750 for families under the councilman’s proposal.



Ehrhardt further wants to eliminate health coverage for the city attorney and other contract workers.



Elected officials who serve on a part-time basis, including members of the City Council, board of public works and city judge, would also be removed from the plan.



The insurance proposals are being discussed by the council.