PRPA sues insurance broker over alleged $3M in added deductible payments

FORT COLLINS — The Platte River Power Authority has alleged in a lawsuit that its health-insurance broker sold the utility a plan that wasn’t suited for an employee with a chronically ill newborn, causing more than $3 million in additional costs.

Since 2013, the Fort Collins-based Platte River has contracted with Illinois-based Gallagher Benefits Services Inc., a subsidiary of Arthur J. Gallager & Co. (NYSE: AJG) to manage its employee-benefit package. It has a self-funded health-insurance plan in which the provider pays for its employee medical claims directly rather than pay premiums to an insurance carrier.