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Released: 9/12/2012 

DRPA Selects New Health Insurance Vendor; Expects to Save Toll Payers $173,000 Annually

Total Annual Savings from New Insurance Contracts Approved since July: $487,435

The DRPA Board of Commissioners expects to save $173,000 annually with its appointment of a new consultant to manage employee and retiree health insurance benefits.

This appointment brings the total anticipated annual savings from new insurance contracts approved by the board since July to $487,435.

“By hiring new insurance brokers and instituting a new fee structure, we have been able to save our customers nearly half-a-million dollars a year,” said DRPA CEO John J. Matheussen. “When you add these savings to the $1.3 million per year we expect to save from our electricity reverse auction and the $30 million we anticipate from this year’s debt restructuring, it becomes pretty clear pretty quickly that our management reforms are saving customers millions of dollars a year.”

The board appointed Gallagher Benefit Services, Inc. to administer the DRPA health and wellness benefits program for a fixed, annual fee of $125,000.  Gallagher will replace The Willis Group, which was compensated by collecting commissions directly from insurance brokers.

Last year, Willis charged the DRPA about $298,000 in commissions. In accordance with recently implemented management reforms, the DRPA will no longer pay commission-based compensation to insurance providers.   All future compensation will be fee-based.

Gallagher’s contract will run for two years. The DRPA will have the option to extend the contract for a third year.

Over the past month, the DRPA has made several insurance appointments that together are expected to save bridge toll and rail fare payers an additional $314,435 per year.

The DRPA’s owner-controlled insurance program (OCIP) will be administered by Turner Surety Insurance Brokerage for fees not to exceed $100,000 over two years.  The Graham Company had previously received $318,796 per year in commissions collected from insurance brokers.  The new contract with Turner will save toll and fare payers $268,796 per year.

Pending approval by the Board of Commissioners on September 19, Aon Risk Solutions will be providing traditional property and casualty insurance for a fixed fee of $129,000 per year, $45,639 less than the DRPA paid to Willis and Graham. Aon also will provide loss control and safety services associated with the OCIP for fees not expected to exceed $250,000 annually.


The Delaware River Port Authority is a regional transportation agency that connects millions of people and businesses in Pennsylvania and New Jersey.  The DRPA owns and operates the PATCO commuter rail line and the Benjamin Franklin, Walt Whitman, Commodore Barry and Betsy Ross toll bridges.  The DRPA also owns the RiverLink Ferry.

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