Milwaukee County’s accounting experts delivered news Thursday that the finance committee didn’t see coming.The county’s health insurance contract with United Healthcare lapsed on Dec. 31, and the county has yet to renew it.”You are amending a contract that did expire at the end of last year,” County Comptroller Liz Sumner informed the finance committee Thursday.The contract covered benefits and prescriptions for the county’s 3,000-plus employees and county retirees. Since the contract expired, the county’s corporation counsel said Milwaukee County is still operating under the old contract’s terms, but now with little legal protection.Supervisor Steve Taylor assured that employees are currently covered. “As of right now, we’ve paid $9 million this year to United Healthcare, so our employees are covered,” he said.However, the county remains in legal limbo. County Human Resources Director Tony Maze Thursday, presented a five-year contract extension with United Healthcare for the committee to vote on, but county accountants cut in and told the committee Maze only provided them with a copy of the contract last week, and they haven’t had time to properly vet it.”How do we get to the point where we’re in a contract that’s expired?” Taylor asked Maze Thursday.The contract itself is the same one the county has had since 2009, with amendments added on at each renewal. County Supervisors on the finance committee also learned Thursday that Maze outsourced the bidding process for contract negotiations, called a request for proposal or RFP, to a third party.Corporation counsel warned that not renewing the contract now poses a significant risk because United Healthcare could decide to raise prices or deny coverage for expensive procedures for some employees. “The potential for catastrophic risk, where for members of our health plans, their care might be affected, or their ability to receive and pay for services might be affected,” Deputy Corporation Counsel William Davidson said.County accounting officials in the comptroller’s office, though, are concerned that renewing the contract as-is might limit their ability to inspect the deal annually to ensure compliance. “We do not have the power that I would like to have to look into this on your behalf based on the language that is in there,” Director of Audits Jennifer Folliard said.Supervisor Anne O’Connor described the situation as “incredibly alarming.””I think we’re moving into damage control mode,” O’Connor said.The finance committee decided to postpone the decision until an emergency meeting Monday morning. There, the committee will decide whether to approve the suggested five-year contract. The full board is expected to address the issue on Thursday. A spokesperson for Milwaukee County Executive David Crowley declined an interview but said in a statement he has “directed administration officials to resolve the situation and work with the Board of Supervisors to approve the contract next week.”
Milwaukee County’s accounting experts delivered news Thursday that the finance committee didn’t see coming.
The county’s health insurance contract with United Healthcare lapsed on Dec. 31, and the county has yet to renew it.
“You are amending a contract that did expire at the end of last year,” County Comptroller Liz Sumner informed the finance committee Thursday.
The contract covered benefits and prescriptions for the county’s 3,000-plus employees and county retirees. Since the contract expired, the county’s corporation counsel said Milwaukee County is still operating under the old contract’s terms, but now with little legal protection.
Supervisor Steve Taylor assured that employees are currently covered.
“As of right now, we’ve paid $9 million this year to United Healthcare, so our employees are covered,” he said.
However, the county remains in legal limbo.
County Human Resources Director Tony Maze Thursday, presented a five-year contract extension with United Healthcare for the committee to vote on, but county accountants cut in and told the committee Maze only provided them with a copy of the contract last week, and they haven’t had time to properly vet it.
“How do we get to the point where we’re in a contract that’s expired?” Taylor asked Maze Thursday.
The contract itself is the same one the county has had since 2009, with amendments added on at each renewal. County Supervisors on the finance committee also learned Thursday that Maze outsourced the bidding process for contract negotiations, called a request for proposal or RFP, to a third party.
Corporation counsel warned that not renewing the contract now poses a significant risk because United Healthcare could decide to raise prices or deny coverage for expensive procedures for some employees.
“The potential for catastrophic risk, where for members of our health plans, their care might be affected, or their ability to receive and pay for services might be affected,” Deputy Corporation Counsel William Davidson said.
County accounting officials in the comptroller’s office, though, are concerned that renewing the contract as-is might limit their ability to inspect the deal annually to ensure compliance.
“We do not have the power that I would like to have to look into this on your behalf based on the language that is in there,” Director of Audits Jennifer Folliard said.
Supervisor Anne O’Connor described the situation as “incredibly alarming.”
“I think we’re moving into damage control mode,” O’Connor said.
The finance committee decided to postpone the decision until an emergency meeting Monday morning. There, the committee will decide whether to approve the suggested five-year contract.
The full board is expected to address the issue on Thursday.
A spokesperson for Milwaukee County Executive David Crowley declined an interview but said in a statement he has “directed administration officials to resolve the situation and work with the Board of Supervisors to approve the contract next week.”
link