Milwaukee County’s accounting team revealed on Thursday that the finance committee was unaware of a significant issue. The county’s health insurance agreement with United Healthcare lapsed on December 31, and no renewal has taken place yet. “This will amend the contract that expired at the end of last year,” noted County Auditor Liz Sumner during the Finance Committee meeting. The previous contract had covered health benefits and prescriptions for over 3,000 employees and retirees. Since it expired, the county’s corporate attorney stated that Milwaukee County is still functioning under the outdated terms but has limited legal protections. Superintendent Steve Taylor reassured the staff that coverage is still in place. “Currently, we’ve paid United Healthcare $9 million this year, so our employees are covered,” he said. Still, the county finds itself in a precarious legal situation.
County Human Resources Director Tony Mays proposed a five-year extension of the contract for the committee’s consideration on Thursday. However, county accountants stepped in, explaining that Mays had only delivered a copy of the contract the prior week, leaving insufficient time for thorough examination. “How do we get to this point with an expired contract?” Taylor questioned Mays. The contract in question has been in use since 2009, with adjustments made upon each renewal. The Finance Board also learned that Mays had outsourced the bidding process, known as a request for proposal (RFP), to an external entity.
Legal advisors cautioned that not renewing the contract could lead to significant fallout, with concerns that United Healthcare might increase prices or deny coverage for costly treatments to certain employees. “The risks could be catastrophic for our health plan members, affecting both their care and their financial ability to access services,” said Deputy Corporate Counsel William Davidson. On the other hand, officials in the county’s comptroller’s office worry that simply renewing the contract as it stands might hinder their ability to review it annually for compliance. Auditor General Jennifer Folliard remarked, “We don’t hold the authority to investigate on your behalf due to the language present.” Superintendent Anne O’Connor called the whole situation “incredibly alarming.” “I think we’re entering damage control mode,” she added.
The Finance Committee opted to delay the decision until an emergency meeting on Monday morning, at which point they will vote on the proposed five-year contract. The full board is set to discuss the matter on Thursday. A representative for Milwaukee County Executive David Crowley declined an interview but stated that he has instructed administrative staff to address the issue and collaborate with the Board of Supervisors to secure a contract in the upcoming week.
