8/9/1994 - Laserfiche WebLink

Home Browse Search

The staff decision is based on the fact that with the continued development and modification of our insurance programs, the County has the capability internally, through Personnel and Risk Management, of --administering the programs directly with the insurers. In the last several years, the programs have been successfully administered internally with financially stable results. The assistance of an agent has not been required. Additionally, with the new contract, Acordia will have a representative on site two full days a week. In the past, the services of an agent were required by the County to develop and administer the programs. Such was the case in 1983, when with the assistance of Schlitt Services the first contract with Acordia was executed. Periodically, assistance was necessary in servicing that and subsequent contracts. ` In 1991, the total health insurance program was re-evaluated and re -bid. Acordia was the successful bidder. At the time, staff and the county's insurance consultant questioned the continued .need for an agent. However, as a result of negotiations the fee was substantially reduced and the determination made to continue the service for the ensuing contract period. During the last three years the County has not had the need to request assistance from the agent to service the contract. Additionally, until the recent rebid, annual increases have been approximately 1% compared to some of the previous double digit increases. The recent rebid has resulted in a decrease for next fiscal year. The staff determination is not unique, as reflected in the correspondence from Siver and the 1991 recommendation from Stanford. The City of Ft. Pierce recently made the same determination with respect to their health insurance program. This determination is absolutely not intended as a reflection on Schlitt Services and their prior contributions to the County. At a time when the County did not have the capability, Schlitt Services successfully provided the service needed by the County. Louis Schlitt, president of Schlitt Insurance Services, Inc., described his relationship with the County over the years working on various programs and the savings achieved through his firm's participation. He believed there was value in the services provided and that the County would save money if the relationship continued. He cautioned that the County would lose certain advantages if his agency's role was eliminated, and he submitted that the only disadvantage was their fee. He also raised the point of fairness and suggested that the bidding system would be destroyed. He felt there were communication and human relation difficulties with County staff members and urged the Board to continue with a local taxpayer as Agent of Record. Commissioner Bird cited letters from Siver, Acordia of South Florida, and Stanford and Company which stated that a local agent was unnecessary. He believed the letters were strong testimony. Mr. Schlitt stated he was never paid an extra fee, and he wagered that those companies were paid more than he was. 11Jf August 9, 1994 I