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Lee's Summit committee recommends Alliant to advise on employee benefits
Summary
The Finance & Budget Committee voted unanimously Feb. 2 to recommend council approval of Bill 26-023, awarding RFP 2026-029 to Alliant Insurance Services for employee benefits brokerage and consulting. Committee members asked for further education on funding models, transparency about fees and periodic briefings.
The Lee's Summit Finance & Budget Committee on Feb. 2 recommended that the City Council approve Bill 26-023 to award RFP 2026-029 to Alliant Insurance Services, a one-year agreement with up to four one-year renewal options.
Human Resources Director Jennifer Vargo told the committee the city received eight formal responses to the RFP, scored them via a panel including the city manager, finance, budget and HR, and invited four firms for in-person interviews. She said Alliant "rose to the top" of the panel's review and staff recommended selecting the firm.
Rick Cawley, senior vice president with Alliant and a Lee's Summit resident, told the committee the firm will focus on a "cost-conscious effort" and help the city build a multi-year plan. "Our job is to get you, with a plan and a path and a multi year basis that you feel like you have as much control and confidence about the process," he said.
Committee members questioned procurement details, committee composition, and data access. Vice Chair Lovell asked whether Alliant would immediately become agent of record and whether the firm had sufficient access to utilization and claims data; staff confirmed that Alliant would become agent of record if approved and that the firm would be given the program information it needs.
Members discussed the proposed fee model — a base professional fee of $125,000 plus commissions for supplemental products — and asked for full transparency on any commissions Alliant receives. "We have committed to full transparency to sharing with you every dollar that we earn as a result of being your broker," Cawley said.
Committee members also pressed staff and Alliant to present a staged approach for evaluating funding options, including the continuum from fully insured plans to partial or full self-funding with reinsurance. Cawley outlined how self-funding with reinsurance provides more aggregated claims data and described options such as specific and aggregate reinsurance to limit the city's exposure.
The committee emphasized early education and ongoing engagement so elected members can weigh trade-offs between premiums, deductibles and benefit levels before major procurement decisions. Chair Shields said she wanted the committee to be "educated on the different options and...weigh the pros and cons" before formal decisions.
A motion to recommend council approval of Bill 26-023 passed unanimously in committee. The item will go to the full City Council for final action.
What happens next: Council consideration of Bill 26-023; if council approves, Alliant would become the city's broker/consultant and staff and Alliant said they would return with market findings and a draft multi-year strategic plan tied to budget timing and open enrollment schedules.
