NJEA continues assault on insurance brokers

The New Jersey Education Association Executive Director continued his union’s assault on insurance brokers Thursday telling members of the senate budget committee that millions in savings are available simply by eliminating broker commissions on health benefits plans.

The NJEA has called for greater transparency in the purchasing of health benefits including a bidding requirement on benefits plans. Vincent Giordano continued that call yesterday.

“Brokers are ripping the system off,” Giordano told the senators.  “They are making millions of dollars.  Under the (state health benefits plan) there are no brokers.”

At a press conference Wednesday, the NJEA released a chart showing millions of savings achieved by school districts that had switched from private brokers to the state plan.  Included in the chart was an estimate of brokers’ commissions, which the NJEA placed at 4 percent of the premium.

But George Norcross, president of insurance broker Conner-Strong and the target of an NJEA ad opposing the pension and health reform bill up for debate today, said yesterday the union’s estimates are inaccurate and true commissions for his firm are less than half what the union estimated.

Norcross accused the union of being driven solely by self interest.

 

NJEA continues assault on insurance brokers