Illinois Leaks | Shelby County’s $ 750,000 No-Quote Insurance Contract Violates State Law –


Shelby Co., Illinois. (ECWd) –

At the Shelby County Board of Directors meeting on December 9, 2021, I mentioned (see the 19:20 mark in the video) during public comments that insurance should be purchased (when it exceeds the minimum bid threshold).

As of January 9, 2020, we gave Shelby County some notices from the Illinois Attorney General regarding health insurance and the requirement for counties to offer health insurance, and the insurance is not not professional service.

We told them in 2020, we know it’s a pain, but with the proper advance planning and bidding, government agencies can save money on insurance purchases. But just like the public comments, that has also fallen on deaf ears. :

This county council voted on an illegal no-tender contract for its health insurance services in the amount of approximately $ 750,000.

Later in the meeting, when asked if he should be the subject of an offer, the state attorney said his assistant had researched the matter and that she did not didn’t think it should be the subject of an offer. We suggest that a county council member get a copy of their research and also seek written legal advice from their state prosecutor.

See the discussion on County Medicare starting at approximately 46:43 in this video. Barbara Bennett proposed (and later mentioned the price of $ 750,000) to renew the health insurance, a discussion followed and then the board of directors voted to approve it with only 4 votes against.

Our research indicates that counties are required to purchase insurance when it exceeds the minimum bid threshold of $ 30,000, as stated in the county code.

It is important to note that Shelby County is a non-self-governing unit of local government.

  • The Illinois County Code sets out the bidding requirements in article 5-1002: “Competitive offers. (a) Any purchase by a county of less than 2,000,000 inhabitants of services, materials, equipment or supplies over $ 30,000, other than professional services, must be subject to a contract in one of the following ways:Then he explains the tenders – and it’s important to note that a failure to bid properly for insurance, resulting in no insurance coverage, does not create an emergency.
  • Illinois State Bar Association published the internal opinion of the Attorney General n ° I-12-006, published on June 14, 2012, which states “Accordingly, the tender requirements of article 5-1022 of the County Code apply to obtaining and renewing health or liability insurance coverage and to the use of agents. designated to guarantee or renew insurance coverage. 55 ILCS 5 / 5-1022 (West 2010).
  • An insurance provider is not a “professional service” according to a 1992 Illinois Court of Appeals case, Compass Health Care Plans c. Board of Education.
  • A different standard applies to home counties such as Cook County, as can be found in U.S. Health Care Providers Vs Cook County. Cook County, a home-based county, does not need to offer insurance services competitively.
  • In 2015, the Jackson County State Attorney wrote legal advice on insurance bidding in counties. In his written opinion, he did not acknowledge that the Cook County case only applied to home counties. He cites, for the tender requirement, the County Code, the 2012 GA Opinion and the Board of Education case (above), all of which require a tender. ‘offers. He also cites the view that insurance is not a professional service under the Professional Services Selection Act.

We have already written about the county insurance bidding requirements in 2015 and 2019.

This vote should be reconsidered at the next county board meeting, and insurance should be properly nominated as required by Illinois state law.

Even if you didn’t have to bid, who in their right mind would choose not to when you spend over three quarters of a million dollars of taxpayer dollars?

Video of the full meeting:

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