HomeMy WebLinkAboutInsurance Committee Minutes 02.11.2010HEALTH INSURANCE COMMITTEE
Thursday, February 11, 2010
2:00 P.M. @ City Hall
Members Present:
Bill Sheridan, Chairman
Monica Salo
Cathy Gabrian
Chuck Dickerson
Donnie Nelson
H.P. Nuernberger
Alex Wilkins
Others Present
Mick DiFronzo
Bill said we received the preliminary rate from MMIA. Their current early rate indication for a
medical rate increase is at 8-11% for the coming year. Based on current claims history, our loss
ratio is actually 53% and the MMIA group is at 75% but we do not fall into the "corridor" so we
will not see a modification adjustment to the rate.
Mick was not surprised at the rate increase with medical inflation at 14-16% in our area. He said
the rate increase is not out of line. Some companies get into trouble by not raising the rates when
they need to. Mick asked BCBS for another 70/30 plan with a 10% differential and they came back
with a plan that has a 5.3% differential.
MMIA is not subject to the State Insurance Commissioner. They could make mid-year adjustments
but it is highly unlikely. Mick said they have a good handle on it but he is not sure of their
reserves. Mick clarified that our claims history puts us at 40% but you have to add in
administrative and stop loss coverage which brings us up to 53%.
In regard to Billings, it was speculated that they may not be running smoothly, otherwise they
wouldn't be looking at joining MMIA. Mick explained that the economy drives the rates. Layoff
of younger workers often leaves older employees who have higher usage, which drives up claims
and affects the rates.
When asked to rank the different plans starting with the best, Mick said it is our Custom Plan,
BCBS 80/20, Bridger 80/20, Madison 70/30, and BCBS 70/30. The provider network was
discussed regarding Levels A, B and C. It comes down to whether we want more take home pay
and less benefit or a richer benefit plan and higher premiums.
Mick said BCBS will only give one claims run per year and he felt it is important to get this every
year. Some carriers may require short term health statements on this group but BCBS did not
require it, probably because they were the TPL for MMIA until recently.
Mick will meet with Union #316 today and Union #306 and the non-union employees on Thursday,
February 18th to answer questions. The committee will plan to meet on Friday, February 19th to
make a decision.
Meeting adjourned at 3:10 p.m.
Respectfully Submitted,
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Cathy Gabrian