HomeMy WebLinkAboutInsurance Committee Minutes 03.31.2014 HEALTH INSURANCE COMMITTEE
Monday, March 31, 2014
2:00 P.M. @ City Hall
Members Present: Heidi Jensen Tom Nelson
Monica Salo Cathy Gabrian
Stan Langve Jason Shovar
Bruce McGee Shirley Ewan
Others Present: Dave Allen Shellie Wherley
Fran Schweigert
The meeting was called to order by Heidi. This is a follow up meeting where BCBS was asked to come
back with options for more affordable plans.
Shellie said our 2014 rate increase is estimated to be 10 %. In December she and Dave did a presentation
on the Affordable Care Act and received feedback to look at other options to reduce costs. Options were
submitted to their underwriters to review and she will present the options with handouts. The increase is
a significant amount for families and they cannot shop on the marketplace since the employer provides
affordable health coverage for the employee only.
The underwriters can take bits and pieces of our current plan and try to modify it but it is not ACA
compliant and will need to become compliant with the 7 -1 -14 renewal date.
The ideal platform would be to transition to Blue Dimensions which allows employee to mix and match
to find one that meets their needs and costs. She feels this plan has all the bells and whistles and is easier
to follow than Big Sky Select. There is no difference between in- network and out -of- network.
Shellie's handouts compared our current rates with other options and gave an outline of coverage for Blue
Dimensions and the High Deductible Health Plan.
• Big Sky Select - modify our current plan and include 10% increase; Out of Pocket (OOP) will
include deductible; 80/20 = $2,200 & 70/30 = $3,000 OOP
• Transition to Blue Dimension plan platform with similar benefits as BSS
1. 80/20 = $25 OVC; $500 deductible; $2000 OOP; RX $10/$40/60% up to $200 max per
fill with $50 deductible waived on generics; specialty drug $100/$200 co -pay
2. 70/30 = $35 OVC; $1000 deductible; $3000 OOP; RX $10/$40/60% up to $200 max per
fill; specialty drug $100/$200 co -pay
• Transition to Modified Blue Dimension Plan
1. 70/30 = $35 OVC; $750 deductible; $2500 OOP; efficient RX full card $50 deductible
• Blue Edge high deductible health plan — low benefit
1. $2500/$5000 — individual /family deductible; integrated pharmacy benefit - $100/0 co-
ins. after deductible
Shellie said the most notable difference is in the prescriptions. Drugs account for about 15% of the cost
of health premiums. They are trying to get people to ask their doctor whether a generic will perform as
well as a specialty drug and ask for a less costly version. Often doctors write the prescription without
being aware of the cost to the patient.
Laurel is in the small merit pool and this pool has some of the lowest increases they have seen. Larger
stand alone plans are seeing increases as high as 30 -40 %.
Heidi asked Shellie if we can see some additional plans.
Insurance Committee Minutes
Page 2, March 31, 2014
Shellie explained adverse selection. Whatever plans we offer, the difference in premium needs to stay
within a certain margin. If they are too far apart, the healthier employees will choose the less expensive
plan and the ones with health problems will stay on the more expensive plans. This creates a situation
where there are not enough premium dollars coming in to pay the claims.
In the future, we could be considered a "Cadillac plan" by the government and be taxed at 40 %. This
determination is based on the premium amount.
Shellie said BCBS will have a 24 hour nurse hotline available soon. Consumers need to be aware of their
health and try to make lifestyle changes to help control costs.
Heidi asked Shellie and Dave to come on Monday, April 14 at 2:00 p.m. At this time, Dave and Shellie
left the meeting.
Jason asked if the committee could meet for a few minutes. The unions would like to see the city go out
for bid this year. Heidi said we were advised not to because this is the first year of the Affordable Care
Act.
Union representatives will speak to their memberships. The committee will meet at 1:30 p.m., prior to
Shellie and Dave arriving at 2:00 p.m..
There being no further business, the meeting adjourned at 3:40 p.m.
Respectfully Submitted,
Cathy Gabrrian