We live in a litigious society and there are two distinct routes to avoiding lawsuits in cases where you make an obvious error.
Admit it or Deny it.
Buck Consultants admitted to Providence, RI errors in their calculations counting on a 90-year relationship to smooth over this rough patch. It didn’t work. Why did Buck’s people even try this ploy? Because the error, however inconsequential in the big picture, was real and Providence would not be bluffed.
But what if you’re dealing with idiots?
So in Union County Brown and Brown stuck to the game-plan last night when it came to supporting the dodgy numbers they provided the county last year to keep their $800,000 in commissions:
Brown and Brown’s response, in the last two minutes of the clip above:
“If the gentleman would like to look at the report on the documentation on the 9% state health benefits increase six months was used. The county plan goes from July to June and the state health benefits plan increases their premium rates on obviously January 1 through December 31 so if the gentleman would look at the monthly totals on the report it is the monthly increase with the assumption on the secondary six months of the state health benefits plan.
With regards to the second question on the premium lag arrangement Horizon would only bill the county ten months of premium for the length of the first year contract so the two months of the premium lag was used as payment or a resource for the payment of the termination clause under the CIGNA contract. So that was the reason why the 7.7 million dollars was not denoted, or I’m sorry noted, on the Horizon premium because the full twelve months of Horizon premium was shun.”
I couldn’t interpret what that last word was. It sounded like ‘shun’. It may have been ‘shunned’ but the whole spiel was gibberish so that one word won’t matter much.
First, the Brown and Brown SHBP cost spreadsheet lists $3,698,344.61 as the ‘Adjustment for projected 10% SHBP incresae on 1/1/13′ and was derived by multiplying the SHBP premium amount ($40,345,577.52) by 9.1666666666% – exactly. Even if the SHBP increase were 10% (instead of the 8.1% that it turned out to be) the generally accepted manner of determining this interest adjustment would have been to multiply $40,345,577.52 by 5% (one-half of 10%) to get $2,017,278.88.
Secondly, the check registry does show $7,749,792 being paid to CIGNA (check 120743 on July 25, 2012) but payments also begin in July to Horizon and continue monthly through the rest of 2012. It is difficult to see any shunning here except maybe by Brown and Brown and the freeholders in shunning responsibility.