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Administration recommends R and R Insurance as district benefits consultant; two-year engagement proposed
Summary
Elmbrook administrators recommended hiring R and R Insurance to provide benefits consulting after a competitive RFP. The firm was the top-ranked proposer; the district is negotiating a two-year contract that would pay R and R $93,996 per year with a year-two contingent performance metric.
District staff recommended R and R Insurance as the next benefits consultant after a competitive request-for-proposal process that drew five bidders.
Pam (district staff) told the board a seven-person review team evaluated proposals from Gallagher, M3, Marsh McLellan Agency, R and R Insurance, and USI Insurance Services on a rubric that emphasized local presence, education-market experience, analytics and reporting, communication and employee engagement, and cost transparency. The review team invited four firms for in-person presentations and ranked R and R first.
Pam said the district's panel found R and R's local presence, education experience, and analytics capability attractive and said references praised R and R's work negotiating stop-loss and pharmacy contracts and supporting on-site clinics. "R and R Insurance was overwhelmingly the top choice of this committee," Pam said.
R and R representatives said the firm is independently owned, does not take commissions or transaction-based overrides from stop-loss carriers or PBMs, and that it brings an in-house analytics function and employee well-being services the district can use to manage high-cost claims. R and R said it would not charge a consulting fee for April through June and would become the agent of record on April 1, 2025; the proposed consulting fee is $93,996 per year for two years with no year-two increase and a contingent performance metric planned for year two.
Board members asked about potential savings and the timeline for implementing changes tied to plan design, pharmacy benefit manager (PBM) contracts and third-party administrators. R and R said the fast-acting, high-cost-drug portion of pharmaceutical strategy often requires careful review of contracts and data and cannot always be switched mid-plan year; consultants typically analyze data and prepare program changes for January 1 plan-year implementation.
Copies of vendor references and a schedule of proposed next steps were provided to the personnel committee, which unanimously supported recommending R and R at its Feb. 4 meeting. The board will consider the contract as an action item at a subsequent meeting.
Why it matters
The district projects annual health-care spending in the high millions and is seeking consulting help to contain costs, strengthen employee education about benefit options, and use data to address high-cost claims. The recommended firm says it will align some fees to performance in year two.
What's next
Administration will return with a negotiated contract for board action at the next meeting and continue data analysis with R and R to develop program options that could be considered for January 2026 plan-year changes.
