Members of the Plymouth Common Council received good news Monday evening when their health insurance agent from Gibson, Ryan Colvin gave them information on their renewal increase.
Several months ago, Colvin warned the city that their claims were excessive and that the city could be facing a rough renewal. At that time he told the city county the increase could be as high as 60%.
Monday evening Colvin had much better news. While the city will see a sizable increase with PHP, Colvin said through a series of negotiations, market leverage and a commitment of a partnership with PHP he was able to secure an increase of around 19% which is roughly $200,000.
Colvin said, “This represents the first sizable increase that the city has experienced in the better part of a decade.”
The city council then had to determine if they wanted to pass on any of the additional expense to city employees.
Clerk Treasurer Jeanine Xaver said they city hasn’t increase the employee share since at least 2014. Currently the city pays 95% for an employee only and 87% for all of the other coverages. The clerk said, “It’s a nice benefit to the employees of the city and we are financially able to cover the total amount of the new cost.”
The Plymouth City Council unanimously motioned to approve the renewal for PHP.
Colvin did submit a request for an increase in the compensation relative to Gibson’s consulting fee. Five years ago Gibson asked for and was granted a 5% increase bringing it to the current rate of $31,500. He asked for a little less than a 5% increase to the two year contract bringing it up to $33,000. The council also approved this request.
