City of Tyler to spend $30,000 on audit of health care costs - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
March 5, 2018 Newswires
Share
Share
Post
Email

City of Tyler to spend $30,000 on audit of health care costs

Tyler Morning Telegraph (TX)

March 04--The city of Tyler will spend $30,000 to audit how much it is spending on health insurance claims for employees.

The Tyler City Council has approved paying the money to the private firm McGriff, Siebels and Williams to oversee the audit.

The audit comes as the city continues to attempt to lower how much it is spending on health insurance premiums and claims for employees.

Lance Pendley, a senior vice president for McGriff, gave a presentation to city councilmembers at their meeting on Wednesday, shortly before the council approved the audit.

From 2016 to 2017, the city lowered what it spent on medical claims from $9.5 million to $8.3 million and what it spent on prescription drug claims from $4 million to $3.4 million, according to the presentation.

The amount spent in 2017 on medical claims is above the $6.5 million the city spent on medical claims in 2015, but slightly below the $3.6 million the city spent on prescription drug claims in 2015.

"We've gotta all understand that we had a huge spike in claims in one fiscal year (2016) and the city hired McGriff to come back in and fiscally balance that," Pendley said. "So when we talk about savings, we're talking about reducing costs over a very expensive fiscal year."

The city currently self-insures for part of its health insurance costs and uses HealthFirst to administer claims. Pendley said McGriff would like to use the $30,000 to bring in an outside firm to audit how HealthFirst handled claims in 2017.

"We just want to make sure we're doing our due diligence, making sure that HealthFirst is doing what we paid them to do, which is pay our claims accurately and effectively," Pendley said.

"I think more of my self-funded clients should go in and audit ... the third party administrator, every couple years, just to make sure that everyone is paying claims correctly and doing what they're supposed to do," he said.

In addition to having McGriff performing the audit, Pendley said he would return to the council on May 23 to discuss whether city employees should be given different options for health insurance plans.

There are 785 employees covered under the plan. The city currently pays the majority of premium costs for each employee, ranging from 75 percent of the premium on a family plan to 91 percent of the premium on an individual plan.

Pendley said there are several different plan designs on the table. One type under consideration is a high-deductible plan, which would cost the city less money, but cost employees more out of their own pockets.

If the city does not want to go straight to a high-deductible plan, Pendley suggested the city start offering a low-premium, high-deductible plan in addition to what it already offers so that employees can have a choice.

District 1 City Councilor Linda Sellers told Pendley his firm has already done a good job on saving money for the city.

"Thank you for the struggles we went through," she said. "I think it's paying off today."

District 5 City Councilor Bob Westbrook agreed.

"We've just seen the results of transparent oversight in our plan, and we've seen the savings in that," Westbrook said. "Is it possible that we can get a copy of those audit results but also any recommendations for savings management of the plan from McGriff?"

Pendley said he could bring in the results when the audit is finished.

District 3 City Councilor Ed Moore saw the issue differently. He framed employee health insurance as how much the employees pay for their care.

"We're talking about savings overall for the city," Moore said. "Let's consider how much we can save coming out of the employee's pocket also. That's the deal with me."

Pendley agreed. He said the city should keep Moore's comments in mind so it can recruit and retain the best employees.

TWITTER and INSTAGRAM: @_erinmansfield

___

(c)2018 Tyler Morning Telegraph (Tyler, Texas)

Visit Tyler Morning Telegraph (Tyler, Texas) at www.tylerpaper.com

Distributed by Tribune Content Agency, LLC.

Older

New York Life Unveils New Advertising Campaign, “Start a Plan that Flexes with Yours”

Newer

Cleanup begins: Many still without power as Cape Ann recovers from storm

Advisor News

  • Global economy ‘resilient’ in the wake of massive disruption
  • Cryptocurrency legislation takes one step forward with bipartisan support
  • IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
  • The hidden flaw in insurance AI adoption for advisors and carriers
  • Rising healthcare costs impact 401(k) accounts
More Advisor News

Annuity News

  • MetLife Expands Guaranteed Retirement Income Offering with Innovative Flexible Annuity Option
  • How annuities can help protect retirees from financial scams
  • MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
  • The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
  • AuguStar Retirement launches StarStream Variable Annuity
More Annuity News

Health/Employee Benefits News

  • Reed: Can these assets be saved?
  • Virginia program cuts costs of health insurance under Obamacare
  • Retirement, health insurance costs to put pressure on future Baker City budgets
  • The United States may be the best place to build universal health care (Opinion)
  • PacificSource cuts 97 Oregon jobs amid retreat from health insurance markets
More Health/Employee Benefits News

Life Insurance News

  • AM Best Affirms Credit Ratings of Halyk-Life, JSC
  • AM Best Affirms Credit Ratings of Symetra Financial Corporation and Its Subsidiaries
  • AM Best Assigns Credit Ratings to Park Avenue Life Insurance Company
  • Nationwide reaches reinsurance agreement with MassMutual on UL policy block
  • Best’s Market Segment Report: AM Best Maintains Outlook on Philippines’ Non-Life Insurance Segment at Stable
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Why Blend in When You Can Make a Splash?
Pacific Life’s registered index-linked annuity offers what many love about RILAs—plus more!

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Discipline Over Headline Rates
Discover a disciplined strategy built for consistency, transparency, and long-term value.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

Press Releases

  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
  • ePIC Services Company Joins wealth.com on Featured Panel at PEAK Brokerage Services’ SPARK! Event, Signaling a Shift in How Advisors Deliver Estate and Legacy Planning
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet