Municipal and School District Case Studies
Customer: Linden Board of Education
Project/ Services Provided:
New Jersey Schools are unique, failing to appreciate these differences and accepting off-the-shelf carrier premiums result in higher employee benefit costs. Linden Board of Education hired Dominick Cinelli and Brown & Brown due to our unique experience in the New Jersey School Board space to review their historical and evolving claim data and reduce in force insurance premiums for July 1, 2019.
Results: Mr. Dominick Cinelli and the Brown & Brown Team began working with the Linden Board of Education on March 1, 2019. Again, our primary directive was to help the District renew all of their employee benefit programs for July 1 at a reduction to current premiums while simultaneously maintaining all benefit provisions.
Within 34 days of our appointment, Brown & Brown successfully leveraged our claim analysis and encouraged the client’s in-force employee benefits carrier to reduce the District’s costs by -$430,507.20 per annum. Our approach proved to be so successful, Linden was able to maintain July 1 premiums through June 30, 2021, with no plan changes. Over a two-year period, this saved the district more than $861,014.40.
Additionally, our efforts allowed the District to contract for benefits outside the New Jersey School Employee Health Benefits Program (NJSEHBP) on a direct carrier basis, more cost effectively. Linden’s direct carrier contract in 2019 was less expensive than NJSEHBP by -$2,763,765 and by -$2,639,396 in 2020, based on assumed employee’s plan election.
Customer: Montgomery TWP BOE
Project/ Services Provided: Secured a low-risk, self-insured program.
Results: Brown & Brown secured a low-risk, self-insured program from the current carrier that delivered anticipated maximum liability equal to fully-insured renewal premium, positioning the client to potentially save over $1.5 million in 2020-2021. Zero employee disruption to medical provider network.
Customer: Piscataway Township Board of Education
Project/ Services Provided: Employee Wellness Campaign chaired by Brown & Brown.
Results: The “best in class” campaign has contributed to a four-year (2016 – 2019) claims per employee performance year-over-year of +2.7%. TPA/stop loss renewal 2020-2021 yielded reduction in maximum liability, aggregate stop loss premium -40% and individual stop loss premium of -9%.
Customer: School District of the Chathams
Project/ Services Provided: Client membership with the Schools Health Insurance Fund (SHIF).
Results: Brown & Brown negotiated client membership with the Schools Health Insurance Fund (SHIF) 1/1/18. No disruption to medical provider network (Aetna). 7/1/19 rate change of -1.0% and 7/1/20 rate change of +1.3%.
Customer: Town of Berkeley Heights
Project/ Services Provided: Brown & Brown was working with the Township of Berkeley Heights to find a long term solution for their employee benefit insurance needs that would allow the Township to be part of a larger collective and to actively participate in the implementation of programs beneficial to all who participate.
Results: To accomplish this task, Dominick Cinelli and the Brown & Brown Team contacted the North Jersey Municipal Employee Benefits Fund (NJMEBF) to explore the opportunity of membership for the Township. The Township elected to participate with NJMEBF in 2009 at a reduction in medical premiums. Since joining the NJMEBF, the Township’s insurance premiums have stabilized and through this relationship the Township has experienced favorable medical renewal increases with many years resulting in a nominal increase with some years even resulting in a reduction to premiums. The Township has also enjoyed annual returns that average fund wide by about 6.5%.
The Township is considering offering employees a NJMBEF wellness programs. Among the Towns that participate in the fund’s wellness program, 46% of eligible employees enroll and 92% of wellness participants complete their elected program. Popular wellness initiatives include, fit bits, challenges, completing a routine annual exam and seminars. Employee incentives are provided each year for any participant completing the program, Fit-Bits are given at initial enrollment.
Town Retirees also enjoyed benefit enhancements, as we collectively rolled out a highly rated Medicare Advantage Program though United Healthcare.
Customer: Flemington-Raritan Regional Board of Education
Project: Work with Business Administrator, Board of Education attorney, and Board of Education Negotiations Committee to negotiate the migration of all teachers’ union employees from a “Platinum” level PPO plan to a “Gold” level Direct Access plan.
Services Provided: Brown & Brown prepared detailed benefit comparisons and financial analyses that were presented at a series of meetings with teachers’ union leadership during mediation. Employee education meetings were organized to address morale “blow back” and highlight Chapter 78 contribution savings to staff.
Results: Client savings for 2015-16 fiscal year – $1 million
Customer: South Hunterdon Regional Board of Education
Project #1: Three (3) K-8 districts, and one high school district were regionalized on 7/1/2014. Working in conjunction with the new Regional Superintendent, Business Administrator, their attorney, and SEHBP carrier liaisons at Aetna and Horizon, Brown & Brown was hired by the new Regional Board of Education to blend the SEHBP medical plans of the four “legacy” districts. Each “legacy” district had an average employee size of 30.
Services Provided: Benefits were successfully blended and 98% of all enrollment, and ID card deliverables were achieved by 7/1/2014.
Project #2: Leverage economy of scale of the newly formed district with 120 eligible employees and build a better health insurance plan for their benefits package.
Services Provided: On 2/1/2015 the Board of Education exited SEHBP and joined a “shared services” and “equal to” program via the Brown & Brown Public Employer Trust, underwritten by a leading carrier.
Results: Rates were guaranteed for 17 months and projected an annual premium savings of $500,000. June 2018 savings are in excess of $1,000,000.