Normal’s MICA vrs Bloomington’s Gallagher

By: Diane Benjamin

Follow-up to these two stories: and

What we know:

  • Normal has purchased comprehensive insurance through MICA for decades, they don’t bid this insurance because they claim MICA does
  • Normal’s Finance director is on MICA’s Executive Committee
  • Normal does accounting work for MICA
  • The cost for Normal this year is $1,945,934 – PDF page 31:

How does this compare to what Bloomington pays? I asked Scott Rathbun, Finance Director, what they pay. He sent me this:

Bloomington is not a member of MICA, they hire Arthur J Gallagher LLC to find the best deal. Including the fee Gallagher charged for services, Bloomington is paying $1,269,982 for comprehensive insurance.

First, there is a HUGE difference between what Bloomington and Normal pay. Bloomington is larger than Normal, so it should be the opposite. I know both are partially self-insured.

There is extensive documentation in what Bloomington and Normal provided. I hope someone more familiar with insurance can analyze what both provided and see why Normal is paying almost $676,000 more.

Last year Bloomington paid $1,084,576 for insurance, also through Gallagher. See the minutes at this link:

Last year Normal paid $1,897,317.

Smaller Normal paid $812,741 more than Bloomington in one year.

I realize insurance has A LOT of factors affecting premiums and apples to apples is difficult. I have more information on what MICA pays Normal for doing their accounting, that will be in a future story.

The question right now is why Normal refuses to look for insurance outside of MICA. Gallagher charged Bloomington $41,593 to act as their broker. If the Normal Town Council cared (most don’t), they would demand Normal hire Gallagher just for a quote. Just the payments make MICA looks more expensive. The connections with Town staff make it look like a HUGE conflict of interest.

Normal needs to prove being a member of MICA is being fiscally responsible. Right now it looks like a scam. Remember RIMCO? The difference in cost would cover a lot of deductible if that’s why Normal pays a much higher cost.





11 thoughts on “Normal’s MICA vrs Bloomington’s Gallagher

  1. Taxpayers in Normal will never know if lower cost insurance is available because the rubber stampers on the council refuse to demand competitive bids. Republican and Democrat council members are to blame equally. This insurance vote always passes with only me asking for competitive bids as the Town policy dictates. I have long criticized the Republican Party for claiming Republicans are fiscally responsible when they won’t hold their fiscally irresponsible Republicans accountable.

  2. Until voters in Normal elect representatives instead of bubbleheads, nothing will change. “Stand and deliver”.

  3. The MICA website you posted earlier had a high level of Marsh is a competitor to Gallagher. I have no idea if MICA is owned by Marsh or if Marsh is providing website services along with brokerage, but it’s definitely a closer relationship that Bloomington has with Gallagher.
    Either way, that means that Andrew Huhn’s relationship with MICA and Marsh, combined with Normal not wanting to seek competitive bids doesn’t just Seem like a conflict or interest.

    1. Marsh is involved, but risk is spread across Mica members. Bloomington had some huge losses in the past but still pays less. The intent of RIMCO was the same as MICA, it cost Bloomington a lot! FBI was involved.

  4. If they can find a way to fleece the taxpayer, they will. Your post should wake-up the crowd and demand answers.

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