HomeMy WebLinkAboutInsurance Committee Minutes 02.04.2010HEALTH INSURANCE COMMITTEE
Thursday, February 4, 2010
2:00 P.M. @ City Hall
Members Present:
Bill Sheridan, Chairman
Monica Salo
James Huertas
Alex Wilkins
Donnie Nelson
H.P. Nuernberger
Cathy Gabrian
Others Present:
Mick DiFronzo
Mayor Olson
Amanda Clark
Mary Embleton
Amanda Clark from MMIA attended the meeting to answer any questions the committee
has regarding our current insurance. Bill asked Amanda if things are the same with our
insurance. She said they have added the Wellness Pilot Program which is expanded for
everyone. The Board of Directors is wellness minded and the wellness program has
resulted in reduced claims. She said by being self-funded, groups have a voice as their
board is made up of employees from the groups they represent. The administrative costs
are broken out and 80-90% of MMIA costs are for claims. They try to manage costs with
case management, employee assistance, wellness and a nurse line for advice.
The medical trend is for increases from 11-15% but they have been able to stay below
10%, with a zero percent increase last year. Amanda said we are a custom group; we have
our own plan and rates. Last year, MMIA had enough history on our group and looked at
our experience compared to the rest of the groups and made an adjustment. We had a zero
percent increase on our custom plan and a slight decrease on the standard plans.
Cancer screenings have been added to the custom plan and Mental Parity Act limitations
have been added, due to passage of a law.
Changes to the standard plans include administrative changes, added preventative benefit
up to $150 per person/ per year, and doing away with the age restrictions for cancer
screenings. In an earlier meeting, Amanda gave Bill and Mary the recommended changes.
Our dental and vision plans are custom to our group and we need to make change decisions
on a group wide basis. They can now offer life insurance at great rates through a stop loss
carrier.
There was discussion about risk. Amanda said Helena joined MMIA last year and she has
had discussions with Billings and Great Falls, who are both self-funded. She said it can
work either way as it spreads the risk across a larger group and the benefit is that the stop
loss rates go down. MMIA evaluates a group's risk before bringing them on.
In regard to a question, Amanda said Laurel came in as their own group with their own
rates and experience. When an increase is necessary, all the groups are assessed this
increase to their own rates, at the same percentage. If a group has a low claims experience,
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February 4, 2010
there may be a little wiggle room and you could see a slight decrease through a
modification factor.
In anticipation of what our rates will be, Amanda said they will not be zero this year but
she does not expect them to be 20% either. They are waiting for January claims info
before they put out the preliminary rate information. Mick stated how necessary it is for
this group to have the preliminary rate to make a decision and the time constraints
involved. Amanda will get this information to us as soon as possible. The final rates will
not be out until May 15`"
If we go with another carrier, we cannot come back for three years. This is done to
maintain the stability of the program. If we would decide to come back, we would do so as
new members and have a five year commitment.
There is no penalty to drop down to a lesser plan and you could go back up the next year.
The benefit year is January to December and the deductible would transfer if switching
between plans. In regard to a question about mid-year increases, Amanda made a call and
found out this is something they can do, but she said they have healthy reserves and can't
imagine doing this. They not only have reserves to pay the variations but they also have a
surplus, which you never want to dip into for claims and risk the program.
If the City of Laurel wants to make any adjustments to the custom plan, it would need to be
done in writing; MMIA would decide if it is feasible to administer and what the cost would
be.
Meeting adjourned at 4:05 p.m.
Respectfully Submitted,
Cathy G brian