Tim Owen

After a two-hour workshop with the county’s insurance agent Tim Owens of Owens and Associates June 28, county commissioners opted to stand by their previous decision to negotiate a fee-based agreement with the Jacksonville firm for broker services.

The board, absent Commissioner Mark Hartley, sought information about the firm’s commissions and bonuses from insurance companies. Commissioners questioned the procedure used to choose its insurance agent and discussed whether any savings could be realized by using multiple agents to solicit quotes from insurers, or if quotes could be solicited without a broker.

Despite the often tense discussions, Mr. Owen’s thanked the commission, saying he wasn’t offended by the queries.

“It makes me better,” he said.

Commissioner Michael Crews, who called for the meeting last month, said he still had unanswered questions. For instance, he wasn’t sure whether multiple agents soliciting quotes from insurers would receive different quotes from the same insurer, or whether an insurer would provide the same quotes to all agents.

According to Mr. Owens, it depends.
The broker contended relationships, like those he has with insurance company executives, can play a large role in the quote.

But he also said insurance companies, when approached by multiple agents seeking quotes for the same group, would “rubber stamp” a quote, which may not represent the best value for county employees.

“This is like trying to buy a cotton-picking car,” Mr. Crews said at one point, alluding to the complex nature of the insurance business.

The commissioner was also frustrated with the difficulty he’s faced in determining how much Mr. Owens’ has been paid to broker insurance products sold the county, including life, health, dental and vision plans.

He began seeking the information last fall.

“All I want is a simple answer,” Mr. Crews said.

Mr. Owens responded that records reflecting the payments were being forwarded to the county as requested. Shortly thereafter he obtained the amount from an associate, which was about $48,400.
AvMed, the county’s insurance carrier, hasn’t been as lucky.

The county’s claims have been outpacing premiums by about 10 percent, according to an May 20 e-mail from Owens to county officials. That means AvMed has not been profiting from covering county employees, at least not recently.

The county switched to AvMed in 2008 and renewed with the company last year.
Mr. Owens also reported during the workshop that AvMed initially proposed a 19 percent increase in premiums for renewal this fall, but that the hike has since been negotiated down to 9 percent.

“You’re already under market rates,” he said in reference to the average market increases of 15 to 20 percent.

The county released a request for proposals [RFP] from insurance agents last spring and a committee of county employees — including those of constitutional offices like the sheriff and clerk’s office — evaluated and ranked the respondents, including Owens and Associates.

The committee recommended hiring the firm, but also that it be paid a flat fee from the county rather than commissions from insurance companies. The commission agreed in mid-May to move ahead with that plan.

Faced on Tuesday with only a month or two before the deadline to chose a new health insurance plan, the commission decided to continue working with Mr. Owens and consider possible changes in procedure next year.

“I think we’re way too late in the race to jump ship,” said Commissioner Gordon Crews. “I think it will end up costing us more.”

Michael Crews pledged not to wait until the last minute to raise his concerns next year.