Municipal Government Achieves Fiduciary Compliance Benchmark

The Challenge

With growing regulatory scrutiny of self-funded plan governance, this municipalitys risk management department needed to demonstrate that they were meeting their fiduciary obligations. They had multiple vendors with overlapping services and no independent oversight of contract terms or performance.

Our Approach

Med-Vision conducted a full fiduciary compliance review, analyzing every vendor contract, fee schedule, and service agreement. We benchmarked all fees against industry standards and evaluated whether each vendor was delivering value proportional to cost.

Key Findings

• Three vendors had overlapping disease management services
• TPA administrative fees were 31% above benchmark for the municipalitys size
• No formal vendor performance metrics or accountability framework existed
• Stop-loss terms had not been competitively marketed in four years

Results

The municipality consolidated redundant vendor services, renegotiated TPA fees, and implemented quarterly vendor scorecards. Total administrative costs dropped 22%, saving $340K annually. Most importantly, the municipality now has a documented fiduciary governance framework that meets ERISA best practices.