Following a presentation by Newark residents Cynthia Mosley and Dan De Nose (pictured left), the Newark City Council adopted The Citizens Campaigns’ model ordinance for Best Price Insurance Contracting, to guarantee the city receives the best insurance coverage at the best price. Council President Donald Payne was the prime sponsor of the ordinance, the measure now awaits Mayor Cory Booker’s signature.
The Citizens Campaign chairman Harry Pozycki said, “We applaud the City of Newark for adopting this waste-cutting solution. This ordinance is designed to eliminate wasteful spending, like excessive insurance costs and hidden fees, so that our cities can maintain services without cutting more jobs or raising taxes higher.”
The Best Price Insurance ordinance guarantees that Newark will enjoy the lowest the price for brokers fees and insurance premiums, including health, workers compensation, liability, by requiring the city to use a fully transparent and robust competitive process. It also requires Newark to hire brokers on a competitive flat fee basis and to work exclusively in the interest of the city, thereby eliminating any conflicts that might arise from broker’s being overpaid by insurance companies while they are advising the city on insurance needs.
According to The Citizens Campaign, this model Best Price Insurance law has already saved over $22 million, including a projected savings of $5.3 million in the City of Camden, $1 million in the Toms River Regional School District, and a total savings of over $5 million for the Perth Amboy school district and municipality.
Specifically, the ordinance requires the city to seek multiple bids from private insurers, and to include cost comparisons to joint insurance funds and the State Health Benefits Plan.
The model ordinance was developed by The Citizens Campaign Law and Policy Task Force and was originally presented by Newark residents Cynthia Mosley and Dan De Nose.