Urbana changes insurance broker; council questions decision

URBANA — Urbana City Council members questioned a recent decision to change the city’s health insurance broker during a city work session Tuesday.

Earlier this month, the city’s health insurance committee voted to select Horan Associates to serve as the insurance broker for employee health insurance. However, some council members questioned the change, noting that Stockdale Insurance, based in Urbana, had served the city for several years.

Al Evans, a council member, questioned why it was necessary to seek a new broker.

“Why were we looking for a new vendor to begin with when we had a solid vendor?” Evans asked.

Bruce Evilsizor, director of administration, said the city wanted to develop a more formal process to seek a new broker, and receive written proposals. The city sought requests from several brokers beginning late last year, and reviewed each one individually.

The businesses with the three highest scores were then asked to present their case to the city’s health insurance committee. Evilsizor said while Stocksdale Insurance was also considered, Horan was able to provide more detailed information and programs, including annual benefit statements to employees.

Kerry Brugger, a council member, said while he didn’t question the health insurance committee’s decision, he believed city administration should have notified council members earlier. He noted many council members were surprised once they heard a decision had been made.

Also on Tuesday, city and county officials met for a quarterly meeting to discuss several topics.

Among the issues discussed, local officials were told that a Metropolitan Housing Authority may soon be created in Champaign County.

Mike Halpin, of the Champaign County Board of Developmental Disabilities, said he is still gathering information to determine what steps need to be taken next and how the entity would function.

He said the Metropolitan Housing Authority would make more resources available to help create housing options for residents who do not make a living wage.

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