Board of Ed rehires health insurance broker BY DANIELLE MEDINA Correspondent BRICK TOWNSHIP - Sometimes the more things change, the more they stay the same. Three years after a previous Board of Education ousted two of its professional brokers, both firms were rehired at a recent board meeting. NIA Group Associates, Cape May, was named the broker of record for health insurance and Boynton and Boynton, Fair Haven, was named the broker of record for property and casualty insurance. NIA will be paid $95,000 for the 2008-09 school year and Boynton and Boynton will receive $100,000 for their services, according to the contract terms. Commerce Insurance Services had been serving as the district's health insurance broker for the past two years. In 2005-06, they were paid a flat fee of $72,000, or $8,000 per month, for the nine months they worked for the district. In 2006-07, Commerce continued to be paid $8,000 per month, not to exceed $96,000, but received an additional $54,000 in bonus compensation, bring their total package to $150,000. Board of Education members at the time justified the bonus because the firm produced a low renewal rate of 5.5 percent. Under Delaware Valley Financial Group and NIA Group, the district saw double digit increases insurance premiums - 30 percent in 2002-03 and 12.8 percent in 2003-04, former board member John Talty said at the time. Both Delaware Valley and NIA Group both employed Mark Senior as its broker. In its last three years as the district's broker, Delaware Valley earned $221,000 in 2002-03, $189,000 in 2003- 04 and $222,000 in 2004-05, according to board records. Those fees included a 3 percent commission on the district's dental plan and 1.5 percent on its prescription premiums. "NIA is not being paid based on a percentage of premiums," district Business Administrator James Edwards said Monday. "They are being paid $95,000 for the year to be the broker of record for medical, prescription and dental." Board member Cynthia McCarthy said she voted against the appointment of NIA group because of their history with the district. "In the past, this group represented our district and we received rates that were not competitive with other districts," McCarthy said. "I am also concerned about the level of customer service provided by this broker." Edwards said that seven firms submitted proposals to be the district's health care broker and that NIA was selected based on their response to the request for proposal. The brokerage firm that gets the district's health insurance contract has been a long-running saga which began in April 2004, when Sharon Kight and John Talty joined the Board of Education. At that time, Delaware Valley came under scrutiny when ethical concerns were raised about whether the relationship between the firm and the board was a conflict of interest. Delaware Valley employs former board member John Bendokas' son, Edward, and Delaware Valley's managing partner, Thomas Schirmer, is a longtime friend of John Bendokas. After Delaware Valley Financial Group's contract was not renewed, NIA was hired by the board in March 2005. But after the April 2005 election and a new majority was in place on the board, NIA's contract was rescinded. Boynton and Boynton had served as the district's broker of record from 2001- 2005, but was replaced in 2005 by Federal Hill Risk Management, LLC, Baltimore. Board of Education members at the time voted in favor of replacing Boynton, and Boynton said it was their prerogative to change professionals. Edwards said that three brokerage firms including Federal Hill submitted proposals. He said that Federal Hill proposed a flat fee of $155,600 for 2008-09. Both contracts will run from June 30, 2008 through July 1, 2009. However, the rate for the heath care broker is a fixed rate for two years and the rate for the property and casualty broker is a fixed rate for three years. All fees are paid by the district's insurance provider, Horizon Blue Cross Blue Shield.