Holyoke trustees name Dowd as sole health-insurance consultant; Alera Group urges clearer process

Jenny McKay, a senior vice president at Alera Group, told the Holyoke City Council Finance Committee on June 10 that her firm felt “quietly pushed aside” after Maureen Ross O’Connell’s retirement and asked the city to clarify how it selects a broker or consultant for the city’s health benefits.

The communication, formally received by the committee, focused on how the newly formed Health Benefit Trust chose Dowd Insurance as its consultant and whether competing firms had been given a fair chance to present proposals. McKay said she had met with city staff about services Alera Group would provide and that her firm had previously been part of the broker arrangement through acquisitions of Ross, Weber & Grinnell.

Why it matters: The trust now manages the city’s self‑funded health plan. Decisions about a broker affect plan administration, budget-setting and claims management; committee members said taxpayers deserve a transparent process, especially for an annual consulting arrangement the committee discussed as roughly a $300,000‑a‑year engagement.

What speakers said and asked

• Jenny McKay, senior vice president, Alera Group: McKay said her firm was preparing to bring Alera’s national resources to Holyoke but “before I really had the chance to do that … we felt like we were kind of quietly pushed aside or voted out from the consulting arrangement, without really a formal process.” She urged the council to explain how consultants are selected and how the city sets working rates and budgets for the self‑insured plan.

• Quentin Donahue, chair, Holyoke Health Benefit Trust: Donahue said the trust voted, using authority in the trust agreement, to designate Dowd as the trust’s consultant after Maureen Ross’s retirement. He said the trustees favored a firm they knew would respond quickly and noted, “for us, the decision was fairly simple to make.” He emphasized the trustees are not excluding other firms in the future and quoted Article 6, Section 2 of the trust agreement explaining trustees’ powers.

• Councilors and staff: Councilor Kevin Jourdain and others pressed for details on process, timeline and safeguards against nepotism or perceived favoritism. Councilors said they can request information under Section 48 of the city charter and urged the trust to run a formal RFP when timing permits. Personnel Director Kelly (last name not specified in the record) and city staff said they support the trust’s short‑term decision and recommended a formal RFP process in the future.

Trust rationale and implementation details

Donahue and other trust supporters said the trust was in its infancy and sought a steady, responsive partner during the transition to full self‑funding. Donahue said Dowd provided a dedicated staff person for the trust and noted the trust opted for a cautious approach as it moved to self‑insurance; he cited Holyoke’s 9% rate increase this year compared with larger increases in some nearby communities.

Alera Group’s technical concerns

McKay outlined technical steps she said a municipal broker should perform, including having an actuarial team set working rates (rather than carriers), evaluating carving out pharmacy benefits, and using claims‑level analytics to contest stop‑loss or administrative pricing. She said carving out pharmacy benefits had produced material savings for other municipalities and that a broker‑led actuarial approach can align rate‑setting with the city’s budget strategy.

Discussion, direction and next steps

Council members said they could not overturn the trust’s decision but asked the trust to publish minutes and to develop a formal procurement process. Donahue said the trust will consider an RFP in the future and that the trust’s meetings and minutes are public; he agreed to provide recent trust minutes to the council and to Jenny McKay.

Votes at a glance

- Motion to receive the communication from Jenny McKay (Alera Group): approved by voice vote. (Motion taken at the meeting; record shows “All those in favor? Aye.”)

- Fiscal transfer to support the Health Insurance Trust (Fiscal Year 2025 transfer of $12,759,860 total: $315,000 to dental trust; $12,444,860 to health insurance trust): approved by voice vote. (See agenda item 2; staff described this as housekeeping to move budgeted funds into the trust now that the trust exists.)

- Acceptance of Mass Cultural Council district investment grant, $15,000 for the Puerto Rican Cultural District: approved by voice vote. (See agenda item 3.)

- Item 4 (personnel-related appropriation/transfers): tabled to a future meeting (motion to table passed). (See agenda item 4.)

Ending note

Committee members and trust representatives agreed on two practical steps: the trust will share its minutes with councilors and Ms. McKay, and trustees expect to consider a formal RFP process once the trust is more established. McKay said she would follow up for the minutes and any further procedural guidance from the trust.