By PAULENE POPARAD

The Porter Town Council split Tuesday over the need to solicit multiple bids for 2008-09 employee health insurance. Three Town Council members and their families also are covered under the plan.

After extended discussion it was agreed to advertise for bids, but members Michele Bollinger and Bill Sexton warned it could be opening the council up for hours of bid scrutiny and comparison. The town’s current contract with United Healthcare through Steve Brady of the Heritage Group expires in August.

Member Jon Granat initially questioned why he was notified only three people would be submitting insurance proposals. Health insurance costs the town about $300,000 annually, he emphasized. “It seems like we’re shooting our self in the foot not getting as many quotes as possible.”

Councilman Dave Babcock agreed. “I think we should put it out for bid. At $300,000 we should shop around a little bit.” He also said the current $1 cost to employees for their coverage may have to be reviewed.

Sexton recalled how he, as a member of the previous Town Council, spent more than two months helping to revamp Porter’s insurance plan. Changes made with the help of Brady saved the town $180,000 the first year, according to Sexton, and this year United Healthcare is asking for a 6.5 percent increase to renew its policy.

Bollinger cautioned that other companies could lowball the first year’s bid but hike premiums considerably in the second and subsequent years; she also warned employees may have to fill out medical forms from several companies to get accurate quotes. Lost productivity in doing so is a hidden cost, she said.

Sexton said the last council fine-tuned the health plan to the point he doubts comparable coverage at a lower price can be found. Porter keeps its costs down by self-funding part of the employee deductible. Babcock said deductibles may have to be reviewed also.

It was agreed employees would be polled as to their insurance preferences for when the discussion resumes June 24.

Police Chief James Spanier, whose department pays $178,000 of the $300,000 tab, said Brady is very helpful but police would like better coverage at the best price. Public Works superintendent Brenda Brueckheimer said she would poll her employees but personally, she’d rather pay more to be able to go to the doctor of her choice and suggested the council shop around to get the best plan.

Granat said if none of the employees like their insurance plan, the town may be doing them a disservice. Clerk-treasurer Carol Pomeroy praised Brady’s work and said she’s not had a problem although her policy usage has been limited.

Councilman Micheal Genger said Porter likely would get several quotes from each of the three people who have asked to bid, not merely three individual proposals. After first saying opening up the bid process would be a waste of time, Sexton later agreed to it. “Nobody can say we didn’t do it.” Resident Karen Pisowicz had urged the council to advertise for more quotes.

Porter business owner Charlie Wilson of The Village tavern said the council probably doesn’t have enough time before August to study a mountain of bids. “Three hundred thousand is not a lot of money in the insurance world,” he told members.

“It is to Porter,” replied Granat.

Also June 24 the council agreed to discuss whether to continue with Indiana American Water Co. doing municipal sewer billing, which includes additional town fees including a stormwater assessment. To-date residential and commercial properties have been paying the latter fee but now a fee for vacant land is going to be added, prompting IAWC to charge the town more for billing land the water company doesn’t serve.

Pomeroy estimated it will cost about $30,000 for the town to purchase software and hardware to resume its own billing but no additional employees would have to be hired.

Town attorney Patrick Lyp said the contract between IAWC and the town has a termination clause but the town may have to pay to get out of it. He recommended starting a conversation with IAWC but not actually severing ties, if that is the council’s desire, until Porter’s own billing system is ready to go.

Posted 6/11/2008