HomeMy WebLinkAboutInsurance Committee Minutes 11.28.2001INSURANCE COMMITTEE MINUTES
NOVEMBER 28, 2001 5:00 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT:
Chairman Mark Mace
Bud Johnson
Ken Olson
Bud Arnold
Mike Ludwig
Guy Rolison
OTHERS PRESENT:
Mary Embleton
Therese Fairbanks
Les Deines
Shane Heigis
Mark called the meeting to order at 5:00 p.m. Mary stated that the last meeting
determined that the city should shop, so the results of the market search will be presented
at this meeting. Therese Fairbanks ofHoiness Labar Insurance stated that she is a broker
and searched the market for companies based on certain criteria given by the city. The
fact that retirees are allowed to stay in the city's group limited the market availability, but
she did find two companies willing to present quotes to the city: EBMS through
Montana Joint Powers Trust, and New West Health Insurance.
Shane Heigis of EBMS gave a background of the company. Five counties formed the
Montana Joint Powers Trust in 1989 to pool their purchasing power for health insurance
purposes. MJPT has since grown to include cities and school districts, some of which are
self-funded with the Trust providing an umbrella, and some are fully pooled under the
Trust. In order to try to contain costs, the Trust asked several hospitals to enter into an
agreement with them to accept certain levels of payment, and the Billings Deaconess
agreed to this arrangement. Therefore, the EBMS quote presented to the committee is a
mirror of the city's current coverage, except that all hospital stays must be at the
Deaconess. The provider directory contains both St. Vincent and Deaconess doctors, and
most doctors are approved to utilize both hospitals. The Trust also has decided that
future premium changes will have a 20% cap either way. This plan requires a three-year
buy-in commitment from the city, or the city can leave at any time, but will have to
reimburse the plan if it is in a deficit at the time of withdrawal. Shane explained other
details and answered numerous questions. The plan does not charge extra fees to
administer COBRA, and there is an average 5-day turnaround for claims processing. The
city's group would enter the plan as "no loss, no gain". The plan also has the flexibility
to change the co-pays, etc. it'the city, through the committee, so chooses. The committee
thanked Shane for his presentation.
Therese then presented two plans from New West, along with two options to those plans.
The benefits are very similar, but there are deductibles and co-insurance included in
several areas. This plan would limit the city clients to only Deaconess doctors and
facilities, which means that all new doctors would have to be chosen. This would not fit
well, since the Laurel Clinic is affiliated with St. Vincent, and city employees use the
Clinic. More discussion and questions followed. The committee thanked Therese for her
presentation. The committee members will take this information back to the employees.
Insurance Committee Minutes
November 28, 2001
Page 2.
The union meets on December 5th, so the next Insurance Committee meeting is
tentatively scheduled for December 12th at 5:00 p.m.
Mark suggested that any discussion on the Health Insurance and Benefit Survey be put on
hold pending the decision on whether to change carriers or not.
Mary mentioned that other cities and counties are considering pooling their purchasing
power for health insurance, as per a recent article in the Montana League of Cities and
Towns newsletter. Bud Johnson stated that since the Montana Joint Powers Trust already
combines public agencies, it may be a wise move to join them at this time. Mary also
updated the committee on the other company contacted. David Brickley of MMBP stated
that his company has issued a moratorium on new business, and would not be able to
present the city with a quote.
The meeting adjourned at 6:30 p.m.
Respectfully submitted,
Clerk/Treasurer