December 24, 2007

City Insurance Consultant Fined

The City of Worcester's insurance consultant, GBS-Group Benefits Strategies, was fined $30,000 by the Attorney General. Here is a link to the press release. The City of Worcester should ask for 5500 reports from their health carriers to make sure that their consultant did not receive commissions on top of their consultant fee from Blue Cross and Fallon.

3 comments:

Anonymous said...

Aren't these the same guys but a different name, think they called themselves Insurance Cost Control. Back in the late 80's they caused all sorts of problems with the city's health insurance and ran into trouble with the AG back then. The city is still doing business with them?

Anonymous said...

I too recall this Cost Control outfit back in the late 80's..................operating outta Sprfld i think......but with deeep Worc. political roots...I wont mention any names....I recall Councillor Arthur Chase was all over thsi situation......he's one councillor i look back on with a fair amt of respect...and he had agreat deal of Business acumen ..............problem is he vowed to serve only 2 terms......then out...........and he did as said he would.........truly worcester loss

Is this really the same outfit?

City still doing business with them???......like i said if it's the same actors........there's some deep political roots here

YA know what one radio host used to say.........."Worc.....5000 employeees and only 7 last names"........tends to still be the same..................

take gander at teh Boston Heralds Worc employees salary review someday .........many, many of the same last names.....esp in fire school & police dept.......

Bill Randell said...

Jahn:

Insurance Cost was based in Worcester. They got in all sorts of trouble working for the City of Springfield for filing false claims. Believe the AG got them back them for 100K.

Remember in the late 80's Insurance Cost Control had the City Of Worcester paying hundreds of thousands for people who should not have been on the insurance amongst other problems. Jahn, you are right Arthur Chase was all over it and got them fired. Insurance Cost Control in turned sued and I believe got their consulting fee off about 200K.

Since that time the President who was charged with tax evasion resigned, they changed their name Group Benefit Strategies and moved to Auburn. Despite all of this Group Benefit Strategies has been the consultant for the City of WOrcester.

I would love someone to get in touch with Arthur Chase to fill him in and hear what he has to say.