HomeMy WebLinkAboutInsurance Committee Minutes 07.31.2002 INSURANCE COMMITTEE MINUTES
JULY 31, 2002 5:30 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT: Chairman Mark Mace Bud Arnold
Ken Olson Guy Rolison
Jason Wells
OTHERS PRESENT: Mary Embleton Mayor Bud Johnson
Gay Easton Para Magnuson
Gena Klotz
Mark called the meeting to order at 5:37 p.m. Doug Poehls was absem.
Mark explained that he invited Gena Klotz from Montana Insurance Group to evaluate
and explain the differences in the various plans proposed to the city. A comparison sheet
had been prepared and distributed prior to the meeting. Gena then gave a background on
her experience in the health insurance market, and emphasized that she is here to answer
questions and educate the committee. She is licensed to sell all of the plans offered, so
she is knowledgeable about each product.
Gena began the comparison by stating that the Blue Select plan promotes the HMO
practice which "positively re-enforces high utilization" of the plan benefits. She went on
to state that CBSA's proposal was difficult to determine benefits, and that it is not to the
city's advantage to self-fund due to the city's loss ratio the past three years. EBMS's
proposal is higher premiums, so it is not to the city's advantage to change. Blue Cross
Blue Shield is more stable and larger than Montana Joint Powers Trust. New West's
proposal is lower premiums, but had less benefits, and is a smaller network (Deaconess).
She explained that when Blue Cross bought out Yellowstone Community Health Plan
(YCI-IP), it then became a "Joint Venture", and the Blue Select plan took the place of the
Yellowstone Plus Plan. However, the Blue Choice products were later developed as an
alternative plan. Gena said that a 6.2% premium increase was exceptionally low this
year, given the city's loss ratio. She also told the committee that Blue Cross wants
people to get offthe Blue Select plan, as it is not as profitable as other Blue Cross
products.
If the city chose a Blue Choice product, the main difference is there are three levels of
coverage within the plan: Level A covers network doctors (Joint Venture network);
Level B covers participating providers with Blue Cross; Level C covers doctors not
affiliated with Blue Cross at all. No referrals are needed with the Choice plans.
Deductibles and co-insurance applies to some services, and she reviewed the larger items.
There will be no change in prescription drag coverage or vision coverage. Maximum
out-of-pocket with the plans is $2,500, while Blue Select is $2,000.
Insurance Committee
July 31, 2002
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Gean recommended that the best value of benefits for the premium dollar is the Blue
Choice 70/30 plan. However, the maximum out-of-pocket with the Blue Choice 60/40 is
the same ($2,500) and it saves premium. She stated that it is important to understand that
the doctor visit and prescription drag co-pays do not apply to the deductible.
Discussion and questions followed. Gena will check on the Well-check benefit. College
kids can get care anywhere, and it will be mostly Level B and even Level A if in the
state, and Level C if out of state. There are only slight differences in the 80/20 plan, and
the premium is higher. G-ena still recommends the 30 or 40 plan because it is the best
buy of benefits for the premium.
The committee then worked through an example: Outpatient knee surgery $5,000
Select BC30 BC40 BC20
$160 $1,850 $2,300 $1,400 out-of-pocket
Bud Arnold stated that it appeared that the choices were limited to the Blue Cross
products. A special union meeting will be held on Monday night, August 5th. Mayor
Johnson stated that the insurance premium was paid through August. Mary told the
committee that if the city chose to change from Blue Select to another Blue Cross product
within the next 30 days, no additional paperwork would be required.
The next meeting, if needed, will be held Wednesday, August 7th at 5:30 pm. A meeting
will only be necessary if further action (such as a change in plans) or further information
is needed. The meeting adjourned at 7:00 p.m.
Respectfully submitted,
Mary K. l~4nbleton
Clerk/Treasurer