Lorain looks to change insurance broker

LORAIN — A change in insurance broker could net Lorain more than $600,000 in savings, according to its human resources generalist. HR generalist Lori Kokoski and AssuredPartners President Joe Concheck presented the potential savings to City Council during a committee meeting Monday evening. AssuredPartners' review of the city's prescription drug costs found its current rebate share through current broker Fedeli Group isn't clear, but is being split with Medical Mutual and ExpressScripts. For this year, that rebate is about $200,000, Kokoski estimated Tuesday evening. That rebate — which is available on formulary drugs without generic alternatives — should be going back to the city 100 percent, Concheck said. Moving to AssuredPartners would give the city back its entire rebate on drug costs, Concheck said. Based on 2022 pricing and negotiations, that savings would've been about $624,468 for this year. During Monday's meeting, Concheck estimated the city could eventually net up to about $1 million in savings by 2024 if it switched to AssuredPartners by auditing other services. Those additional savings could come from medical administration and discounts in the marketplace from hospitals and physicians. AssuredPartners negotiates contracts annually for its more than 1 million member consortium, he said. AssuredPartners' cost is a flat $75,000 a year, and membership in the consortium is $4.75 per member, per month. Lorain's insurance plan covers about 430 employees and another 770 dependents and spouses. For the same service, Fedeli costs about $7 per insured person, Kokoski said, plus a fee to Medical Mutual of about $1.85 per prescription. She estimated they average about 9,500 prescriptions per year. AssuredPartners' service also includes an annual outside audit of ExpressScripts, Kokoski said, making sure the city is reimbursed for everything it should receive and verifying any claims its been charged for are accurate. She said if the city goes with the service, it doesn't change employees' coverage or benefits. The contract with AssuredParnters would be for three years, locking in the $75,000 per year rate, while the consortium is renegotiated yearly. The city has been with Fedeli Group since 2019, but the contract was never approved by City Council, Kokoski said. She worked with Concheck during her time as a county commissioner, she said, when he worked for another brokerage firm. During Monday's meeting, Mayor Jack Bradley said he's continually asked Fedeli about the amount of rebate the city should receive, noting AssuredPartners has said in simple terms the city will receive 100 percent of its rebate if it switches brokers. Changing brokers will have to be voted on by all of council. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.