Monterey Aldermen approved switching health insurance brokers during a special-called meeting Monday.
Alderman Jamie Phillips said the change in insurance brokers will save the town an estimated $80,000.
“Essentially, they are gonna have a $500 out-of-pocket maximum for their health care, so a $500 deductible, $500 out-of-pocket maximum,” Phillips said. “Their first 12 co-pays at the doctor are paid and covered. We can get this plan, it’s even better than what they have now.”
Mayor Alex Garcia said the change will not impact employees other than removing the cumbersome work of filing co-pay claims that are required under the current plan.
“The employees go to the doctor, they pay their co-pays, and then they file a claim with Colonial, and then Colonial reimburses them,” Garcia said. “What TML (Tennessee Municipal League) is doing for us is that the employer will carry a part B card, and there will be no out-of-pocket for the employee. No claim forms, nothing to file.”
Phillips said the town’s current broker has a health insurance plan that includes an additional bridge plan, which has additional costs. Phillips said the new broker does not have a bridge plan attached. Phillips said swapping insurance brokers would provide the same coverage and remove the additional costs from the bridge plan.
Garcia said switching over will help the town plan its budget.
“What they are also gonna do for us is change us from an August 1 start date to a July 1 start date, which lines up with our fiscal year, so that means we can get rates for next year in time for the budget,” Garcia said.
Garcia said that TML will also offer a portal login for employees. Phillips said having one company handle everything rather than several companies will make things easier.
In other business, the aldermen approved to donate $1,000 to help cover travel expenses for a Monterey High School ninth grader who qualified for a worldwide archery tournament that will be located in Myrtle Beach, SC.
