Plymouth council approves Gallagher as health insurance broker for $20,400 contract

The Plymouth City Council voted to engage Gallagher as the city’s health insurance broker and to authorize staff to finalize agreement details, with services billed at a flat fee of $20,400 for the year. City staff said funding will come from the city’s self-insurance fund.

Tim Blakesley, the city administrator, told the council the city issued a request for proposals in 2025 and received five responses; staff interviewed three firms and recommended Gallagher for its flat-fee model and local support from a dedicated product manager. "Gallagher is our overall recommended firm," Blakesley said, outlining services such as actuarial support, pharmacy analysis, vendor management and employee communications.

Blakesley said the city previously worked with a broker under a commission model that included a 10% stop-loss commission plus a $2,000 fee, which in prior years approximated $20,000 and prompted the city to seek a different structure. The proposed Gallagher engagement, Blakesley said, aligns compensation with the city’s interests and is expected to deliver a return greater than its cost.

The council moved and seconded the recommendation and approved it on a roll call recorded in the meeting transcript (council members recorded as voting yes include Gilson, Sandy, Taucek and others; the clerk announced "Motion carried"). The transcript shows Josh Bergman from Gallagher was present for questions but does not record substantive objections from council members.

Funding for the contract will come from the city’s self-insurance fund, which covers both municipal utilities and employee premiums, and staff said the expense will be budgeted in subsequent years.