Monterey sees healthcare savings through TML, FMIG Health partnership programs

By KATE COIL

TT&C Assistant Editor

A new partnership program between TML, and FMIG Health is working with municipalities to find the best and most affordable healthcare coverage for their employees.  

Like many small municipalities, Monterey Mayor Alex Garcia said the town was facing both rising costs for its healthcare plan and concerns the plan wasn’t doing all it should for their 27 employees.  

“I thought the amount we were paying for insurance was pretty high for a city of our size,” Garcia said. “We sought quotes from a few other insurance companies, but everyone was showing us plans for 1,000 employees. We’ll never have a 1,000 employees. Then TML reached out to us to see if they and FMIG could give us quote. The quote that came back to us was about the same, but our insurance was also about to go up about 15%. It kept us at the same price before the raise, and, in my opinion, we got a much better plan. Our employees are paying less money out of pocket. They don’t have to do claims forms any more. The plan takes care of it up front.” 

Kevin Krushenski, marketing representative with the Tennessee Municipal Bond Fund (TMBF) and the staff member assigned by the TML Board to determine the feasibility of a membership employee benefits program, said these concerns have been echoed by other cities across the state. 

“In late 2022, TML members voiced concerns about the rising cost of providing health insurance coverage for employees and the crowding out effect it was having on employee raises and other investments into the community,” Krushenski said. “The most heavily impacted were our smaller cities and towns with 50 or fewer employees. As more than two-thirds of TML's cities and towns have fewer than 50 employees, the challenge was finding the right partner that not only was willing to help our smaller communities, but also a partner that had a track record of success in this niche.” 

After evaluating numerous partnerships, TML ultimately partnered with FMIG Health.  

“Their health insurance-only focus enables them to think creatively and come up with solutions that can not only reduce the cost of health insurance but also improve the benefits,” Krushenski said. “Our partnership gives the program the TML brand name, years of experience and data on employee benefits, and the buying power to approach carriers about offering specific products geared for TML’s member cities.” 

Derrick Jenkins, president of FMIG Health, said the company operates in 39 states and provides healthcare solutions to both the private and public sector. 

“FMIG felt that challenges the municipalities face are compounded even more when trying to provide comprehensive benefits to employees,” Jenkins said. “I have deep relationships in the market, and I knew that we could take the membership strength of TML to the top supplemental carriers in the market to design exclusive solutions for Tennessee cities. Our foundation in the benefit program is to continue to offer only the best primary medical coverage through all the top carriers but use secondary insurance to achieve the most comprehensive coverage for employees.  This approach provides savings and improved coverage with a benefit package instead of trying to hold down deductibles on the primary coverage alone.” 

Jenkins said FMIG has designed exclusive products that are only available to TML members and particularly benefit smaller cities and towns, who often have the biggest challenges in securing group health care.  

“We have two strategies that can provide a solution,” he said. “The first is traditional group with a higher deductible and secondary coverage provided by the TML exclusive plan. The second is a federally legislated option that allows employees to choose from multiple top-rated carriers.  This option allows the employer to provide an allowance to the employee to shop the carrier and plan design that makes the most sense for their family.  In many cases, the options on this program can be less than a group option on a smaller city.  This option also has a TML exclusive product that layers on top of the medical that provides 100% protection against deductibles on accidents and illnesses.  Both strategies are illustrated for the city and our team will provide a comprehensive comparison to help see the best option.” 

One of the goals is to work with cities to find options that best benefit their employees.  

“The benefit will be an option for cities that are currently facing double-digit increases in the 15% range,” Jenkins said. “Our team can also allow for cities that have given up on trying to find an affordable option a chance to provide an allowance to employees that better suits their budget.  In many cases, tax credits may be available for dependents if the city is unable to include a share of those costs inside the city budget.” 

By choosing this program, Monterey was able to save more than 12% of their insurance, reduced co-pays and deductibles, and improved their dental and vision coverages. Garcia said coverage is also easier for employees to implement.  

“In the previous plan, we had gap coverage, but employees had to go to the doctor, pay out of pocket, fill out a claims form, and then get reimbursed,” Garcia said. “If an employee forgot or didn’t fill out that claims form, they didn’t get reimbursed. Now, with this plan, employees don't have to pay out of pocket or remember to send in claims forms. We are also spending the taxpayers money. It’s under scrutiny all the time, so we’re always looking to see what kind of deal we can get. If you have an opportunity to get quoted the program we did that only TML can offer, I would say you should really look at it. It was a major benefit for us.” 

Garcia said working with TML and FMIG Health also took a lot of stress out of the process. 

“Derrick, Tim Lankford [TML’s health insurance program marketing representative], Kevin and everyone at FMIG and TML were amazing. Those guys were great through the whole process. We really put their feet to the fire because not only did we want new insurance but we wanted it to start in July to coincide with our fiscal year rather than August like we normally do. They got it done. We had open enrollment, and they did a great job with them. Hats off to those guys. They’re all amazing.”