Insurance Committee recommends MB Health as city broker after review of three firms

The Insurance Committee voted to recommend MB Health Insurance Agency as the city’s healthcare broker for the next year after hearing pitches from three firms and input from union representatives.

At the meeting the committee’s chair said the city has used the same broker for 10 years but has experienced recent "deficiencies when it comes to service," prompting staff to solicit presentations from two new brokers and the incumbent. "Right now, the initial quote that we received is an increase of 25% to the city for healthcare," the chair said, noting that all three brokers expected increases but believed they could negotiate rates down.

Trisha, identified in the meeting as the city’s HR head lead, said she and other staff scheduled the presentations and welcomed union participation. "They had great questions ... it was really for me a hard choice," Trisha said, describing the finalists as "all great companies." She said union representatives were "very active" in the evaluation.

The committee identified MB Health Insurance Agency as its recommended broker. Committee members noted MB Health had municipal experience and that the lead representative for the city would be based off Columbia, with the agency’s headquarters described as in Sunset Hills and a key staff member out of Edwardsville.

A committee member asked whether the city could revert to a previous broker if MB Health failed to deliver on its promises. The chair responded that the city would be committed for the current annual cycle but that staff would manage provider relationships as needed.

The chair recommended, and the committee moved to, signing an agreement with MB Health to serve as the city’s agent of record for the coming year. The transcript does not name the original mover; members Matt and Joel are recorded as seconding motions. Members were asked to signify approval verbally; the committee then closed the vote and proceeded with next steps.

Under the plan discussed at the meeting, MB Health would provide agent-of-record letters and begin shopping plans and quotes on the city’s behalf. Committee members noted that, after the committee’s recommendation, the matter would proceed to the council for final authorization. Staff said they would circulate provider information at a follow-up insurance meeting.

Next steps: staff will prepare a memo of understanding for MB Health, MB Health will request agent-of-record letters and begin soliciting provider quotes, and the committee’s recommendation will be forwarded to the council for approval.