The City of Moncton is going to save $590,000 annually for the next five years after dropping Medavie Blue Cross as the majority provider of benefits for their employees.
Mayor Dawn Arnold says once the request for proposal went out, they were bound by the rules of the provincial Procurement Act, and had to choose the best scoring option.
“We all want to support local companies, when and where it makes sense, but we don’t actually have a real choice here,” says Arnold. “Supporting the awarding of the contract which will allow the city to save almost $3 million in the next five years is important, and actually, our only legal option.”
She added they were between a rock and a hard place because they had a well respect local company on the one hand, but were forced to follow the rules of the Procurement Act.
“Also [we have] an obligation to our citizens to be as responsible as possible with the money that they have entrusted to us, and we now have the opportunity to save those same taxpayers $590,000 a year for five years, a total of almost $3 million,” says Arnold.
Council decided to award five year contracts to three different companies for health and dental (Green Shield Canada), life and long term disability benefits (Sun Life), and accidental death and dismemberment coverage (SSQ Financial Group).
Councillor Greg Turner voted against the recommendation, noting how much Medavie Blue Cross contributes to the community.
“You give back, and it creates a better quality of life for your employees, your families, and for your customers,” says Turner. “And that’s what Blue Cross does, they give back. It doesn’t matter if it’s the Boys and Girls Club, the Rotary Club, the YMCA, the SPCA, it goes on and on and on, they give back.”
Despite Councillors Shawn Crossman, Paulette Theriault, Greg Turner, and Susan Edgett all voting against the decision to strip the contract from Medavie Blue Cross, it was passed 7 – 4.
