Morristown moves forward on insurance reform
Morristown resident Linda Carrington answered the Jersey Call to Service – and got real results.
The Jersey Call to Service is a statewide movement to empower regular citizens to affect positive change in their communities. The Citizens’ Campaign has learned over the years that with the right tools and training, any citizen get real results.
Embracing the no-blame approach, Linda took the Citizens’ Campaign model for competitive insurance and successfully lobbied Morristown officials to use a more transparent and competitive process for selecting health insurance providers as well as establishing a maximum price on broker’s commissions and fees.
According to Morristown Business Administrator Michael Rogers the town used an RFQ process and established a maximum broker’s fee. So far, the immediate savings has been $37,000 in reduced compensation for the broker.
Insurance procurement has been rife with scandal throughout the state. In 2007 officials in Pleasantville, Passaic, and Newark were arrested for accepting bribes in relation to insurance contracts and in the designation of a “broker of record.”
The Citizens’ Campaign model proposal requires towns to seek a minimum of 3 bids for insurance, including bids from the State Health Insurance Plan, County Joint Insurance Fund, and others. It also requires that all brokers and consultant’s fees be fully disclosed. The resolution is a key component of the Citizens’ Campaign “People’s Tool Kit,” a series of government waste-cutting measures proposed by citizens on the Campaign’s Platform for the People.
The Cherry Hill School District saved $6 million by switching to the State Health Insurance Plan. Tom River is estimating a couple hundred thousands of dollars in savings.