Wednesday, April 4, 2012

Citizens Campaign lauds Hoboken joining the list on Insurance Best Practices

From the office of the Citizens Campaign:






City of Hoboken poised to adopt "Best Price Insurance Contracting" Reform Ordinance

The Hoboken City Council will be voting for final adoption on an ordinance tonight which would require the city to seek competitive proposals for insurance coverage, including proposals from the State Health Benefits Plan and JIFs, and require the city hire brokers on a flat fee basis.

The proposed ordinance will guarantee that Hoboken gets the price on insurance premiums, including health, workers compensation, liability, etc, by requiring the city use a transparent and competitive process. It also requires the city to hire brokers exclusively on a flat fee basis, thereby eliminating any conflicts of interest that may arise between the broker and insurance carriers.

Several other cities and school districts have implemented a similar policy and saved over $10 million dollars, including the cities of Plainfield, Paterson, and both the city and school boards of Perth Amboy and Camden.

Specifically, the ordinance requires the city to seek a minimum of 3 bids for insurance, including bids from the State Health Insurance Plan. It also requires that all brokers be paid exclusively by the City, thereby ensuring that brokers perform their duties in the interest of the City, not the health insurance company.

The model ordinance was developed by The Citizens Campaign Law and Policy Task Force and was originally presented by the campaign's Hudson County chair John Branciforte.



Hoboken resident John Branciforte said, “I hope the council will embrace this proposal that has the potential to save millions of tax dollars that can go towards improving the quality of life and improving services.”

Recently the NJ State Comptroller issued a report  (http://www.nj.gov/comptroller/news/docs/shbp_audit_report.pdf) which estimated that municipalities across the state could have saved more than $100 million collectively had they entered the State Health Benefits Plan.

This ordinance is part of The Citizens Campaign Toolkit, a series of online educational classes and model ordinances designed to cut government waste and increase transparency.

The Citizens Campaign is a nonpartisan, nonprofit organization that empowers citizens to get results on issues they care about.



Talking Ed Note: MSV wishes to recognize the efforts of Hoboken resident John Branciforte and the Citizens Campaign for their efforts and their continuous support for "Best Practices" in government.


It's great to see Hoboken again join others in NJ in good government measures and we expect the ordinance to pass later tonight.


For more on the Citizens Campaign's efforts for NJ, see their website:
http://thecitizenscampaign.org/