Self Insurance Committee Going In a Different Direction

Ovation is out, Lindberg & Ripple is in.

The town is moving in a different direction with their health insurance consultants, hiring Lindberg & Ripple of Windsor this week to step in as the newest members of the consultant team working with Southington's Self Insurance Committee. Lindberg & Ripple will receive $55,000 over the next year for their services.

"Ovation put us on the right track, but we went to (request for proposals) and in the end, Lindberg & Ripple was the right selection for the town," said Al Natelli Jr., town councilor and member of the Self Insurance Committee.

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The company provided the following information regarding services on their website:

• Design benefit plans and underwrite coverages that provide maximum value 
  and best possible price we can obtain 
• Review existing plans for renewal and recommend changes to meet
  new goals and challenges
• Evaluate funding arrangements that may be able to reduce total plan costs
• Negotiate with carriers to secure competitive pricing options for your benefit offerings
• Perform contribution analyses based on salaries to find the right balance between
  how much your organization pays versus how much your employees pay
• Find ways to help minimize the effect of salary increases on your budget—
  without taking benefits away
• Provide hands-on support in arbitration meetings and collective bargaining sessions
  (for large-group employers)
• Determine benchmarks for your plan and regularly monitor them to ensure
  your plan continues to meet the needs of your employees and your organization
• Proactively communicate compliance and regulatory changes that may affect
  your plan—and help you take action, if necessary
• Calculate reserve levels for self-funded plans
• Provide a comprehensive level of service including:
  enrollment, claims management, monthly service calls, periodic newsletters, web-based
  benefits resources, HR helpline, and seminars through our “lunch & learn” series

Ovation had previously spent several years as the town's health insurance consultants, helping to establish a surplus that prevented growing costs to the taxpayer and even working with officials to establish a wellness program that aims to reduce long-term health care costs.

It hasn't all been for the better, however. Councilman John Barry, who also serves on the Self Insurance Committee, said the town is currently $300,000 in the red compared to anticipated costs for the 2012-13 fiscal year and $433,000 over where the town was at the same point last year.

Barry said that Ovation is not to blame for the recent increased costs, costs that were instead driven by unexpected claims processed over the course of the past year, but it's a challenge that will face the committee, the town and incoming representatives of Lindberg & Ripple in the future.

"There are challenges and we have several months left, but the committee will need to closely monitor the situation," Barry said. "If we are over budget, we will have to make up those funds. Right now things are in line, but the trend is not good."

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