HomeMy WebLinkAboutInsurance Committee Minutes 12.29.2009HEALTH INSURANCE COMMITTEE
Tuesday, December 29, 2009
1:00 P.M. @ City Hall
Members Present: Bill Sheridan Cathy Gabrian
Chuck Dickerson. Donnie Nelson
Alex Wilkins H.P. Nuernberger
Monica Salo James Huertas
Others Present: Sam Painter
Bill said the purpose of this meeting is to determine the Request for Proposal in order to go
out for bid on our insurance.
Sam stated the RFP does two things; the published RFP provides notice to vendors and it
also directs them to contact the city for a bid package. Last year a RFP was written up that
included the detail on our plans. He is now being told the committee only wants to include
the Cost Sharing Provisions box from three plans. Sam said if you want to compare plans,
you need to give the companies something to bid on_
Jim said we agreed to include the detail from the Custom Plan and then the top box of the
80/20 and 70/30 plans. There was discussion and Cathy said this had been discussed but
the motion did not state it that way.
Chuck feels we need to include the information sheets on all plans and not waste our time
or the vendors' time. Jim responded that we will get a price comparison, not a different
plan.
Chuck said once we receive the bids, we need to get an agent to decipher them and make a
recommendation to the committee of the top plans.
Motion by Chuck, seconded by Donnie to go with the UP that was presented that includes
the information sheets from our current 2009 plans, advertise and see what comes in, hire a
consultant who will make a recommendation to the committee, the committee will take it
back to bargaining units for approval and the committee makes a recommendation to the
council.
Sam said what we are seeking is authorization from the council to go forward with the UP
for the employee benefits program. The council does not want to see the detail of the RFP.
Motion by Chuck, seconded by James to recommend that the council go out for RFP for
the employee benefits program. Motion carried 8-0.
There were questions about hiring a consultant. Sam said it is a good use of money to get
one to decipher the plans and it needs to be someone who will not be bidding. Years ago
the unions used Mick Difronzo and were happy with him. Alex also suggested contacting
Farmer's Insurance rep, Tara Cayko.
A vote was taken on the original motion. Motion carried 6-2 with Jaynes and Monica
voting nay.
There were still questions some wanted to ask.
Motion by Chuck, seconded by James for reconsideration of the vote, to open it back up
for discussion. Motion carried 8-0.
Monica asked James to clarify why he did not want the detail to go out. James said the
more detail we give, the more you're asking for the same plans. All we will be getting is a
price comparison. James suggested bringing in a consultant to help write the RFP, not
going thru underwriting twice and see what's substantial before requesting individual
health histories. We probably will not find other insurance, but at least we know we have
the best insurance for the price. His union feels the city is being held hostage by our
current plan. Coverage is more important than cost and they would need a significant
change in price to change plans.
H.P. asked if anyone has contacted MMIA about sending a representative to answer
questions. The committee requested a representative from MMIA to attend a Health
Insurance Committee meeting. Bill will call MMIA and set up a meeting.
Sam feels we need to present all information, but that is not a legal opinion. It is up to the
committee to decide.
Motion by James, seconded by Chuck to accept the RFP that was presented that includes
the information sheets from our currcnt 2009 plans. Motion carried 7-1 with Jairies voting
nay.
Sam reviewed the makeup of the committee, per Resolution No. R09-61. Donnie stated he
did not want to be chairman and Bill has been acting in this capacity, but we need to vote
on it. The committee also needs to elect a secretary.
Motion by Chuck, seconded by Donnie to elect Bill as chairman of the Health Insurance
Committee. Motion carried 7-1 with Jaynes voting nay.
Motion by Chuck, seconded by Donnie to elect Cathy as secretary of the Health Insurance
Committee. Motion carried 8-0.
Meeting adjourned at 2:15 p.m.
Respectfully Submitted,
Cathy Ga rian