City’s employee health insurance contract comes under fire [Connecticut Post, Bridgeport]

Apr. 28--MILFORD -- The city's continued business relationship with an insurance broker that was forced to repay more than $28,000 in alleged kickbacks has raised concerns among several aldermen.

Milford received the money as its share of a $4.6 million settlement in the 2005 case against AON Consulting Co. of Chicago.

Attorney General Richard Blumenthal, in announcing the settlement, said 6,000 AON customers in the state would share in the money, restitution for a "pay for play" system of matching insurers to clients. The town of Fairfield, for example, was repaid more than $135,000.

But five years later, Milford continues to place its employee health insurance through the broker, without putting the service out to bid, Arlene Elmo told the Board of Education on Monday night.

Elmo, whose husband owns a local insurance agency, drew loud applause from a crowd of more than 700, when she demanded that the next insurance contract, in July, be put out to bid.

At the same time across town, members of the Board of Aldermen had a testy exchange with Mayor James L. Richetelli Jr. over the AON contract.

Alderman Frank Goodrich, R-3, noted that former aldermanic chairman Thomas Beirne, has raised the issue several times. "What I want to know is, was it brought up when he was chairman?" Beirne, an insurance executive who has sought to have the broker contract put out to bid, said he was watching the meeting at home on TV when he heard his name.

"I can tell you this never came before us when I was on the board, and I don't know where the $28,000 went," Beirne said Tuesday. "I am trying to get answers." Goodrich said that he didn't mean his comments to be critical of Beirne. "It was one of those things that, as soon as I said it, I knew I shouldn't have." Alderman Ben Blake, D-5, said Tuesday that Beirne's question is a good one. "Why is the city still doing business with a company that has a track record of inappropriate behavior.

"And a better question is: why are the mayor and some aldermen defending this company?" Blake asked.

AON and a competitor, Marsh & McLennan, agreed to stop requiring "contingent commissions" to place business after they were sued by the attorneys general of several states, including Connecticut.

AON was paid $114,000 last year to place the city's health insurance business with Anthem Blue Cross. Anthem administers the claims and provides "stop loss" coverage for the city, which is self-insured.

AON corporate spokesman David Prosperi did not return a call for comment on Tuesday. The school board's contract with the Milford Education Association, the 650-member teachers' union, requires that Anthem Blue Cross be its insurance provider. That limits AON's ability to get other offers, officials said.

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