HomeMy WebLinkAboutInsurance Committee Minutes 05.01.2003 INSURANCE COMMITTEE MINUTES
MAY 1, 2003 6:00 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT: Chairman Mark Mace Bud Arnold
Doug Poehls Guy Rolison
Ken Olson Jason Wells
OTHERS PRESENT: Mary Embleton Bud Johnson Dave Allen, Western States Insurance
Mark called the meeting to order at 6:02 p.n~
There was no Old (unfinished) Business to discuss.
Under New Business:
It was clarified that the existing committee will continue to act in its current
capacity until the new Insurance Committee is established, as per the union negotiations.
The City has adopted new HIPAA policies as they pertain to the Ambulance
service. Dave Allen explained that entities were to have new privacy policies in place by
April 14th to protect Private Health Information. The City has met the initial
requirements and deadlines. Dave stated that the legal advice his company has been
given, is that the privacy policies apply to Summary Health Information also. He
recommended that the committee should sign confidentiality statements for HIPAA
compliance. All members present signed the statemems.
Dave presemed the committee with renewal rates for the Blue Select plan. The
premium increase is 9.5%. Guy Rolison had asked Dave to request a $40/premium level
concession fxom Blue Cross/Blue Shield. The company gave a 2% reduction instead, for
a net increase of 7.5%; more reductions could be forthcoming after the April claims are
processed.
For the Blue Choice 80/20 plan premiums, a factor of.895 can be applied to the
Blue Select renewal rates. Dave also reported that the City can renew at 7/1 rather than
8/1 flit chooses to do so. One option the City may be able to offer would be the 80/20
plan, with the option of going up to the Blue Select plan. However, the group may not be
large enough to offer this option, due to a concept called Adverse Selection where the
healthier members of the group choose the lower plan, and the higher risk members
choose the higher plan~ If the City goes with the dual plan, then the rates would have to
be adjusted upwards.
The committee then reviewed the claim history information. Discussion
followed. The City is still waiting for the dental renewal premiums.
Insurance Committee
May 1, 2003
Page 2
The committee outlined the following options:
1. Stay with Blue Select - some members may have to pay premiums above
the cap.
2. Go with Blue Choice 80/20 - members may stay under the cap.
3. Go shopping.
Dave Allen told the committee that increases in prescription costs are outpacing
increases in medical costs. The City could revise the prescription portion of the plan.
Also, the City could drop the vision portion of the plan, and make it employee paid.
The committee then discussed the HiPAA ramifications pertaining to shopping
for other insurance. The information provided to prospective bidders will have a
different format than what was provided in the past. Research will be done prior to
putting together a bid package. Guy, Jason, and Bud will give a list of prospective
bidders to Mark, and then another meeting will be set up.
The meeting adjourned at 7:15 p.m.
Respectfully submitted,
Clerk/Treasurer