HomeMy WebLinkAboutInsurance Committee Minutes 06.04.2003 INSURANCE COMMITTEE MINUTES
JUNE 4, 2003 5:15 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT: Chairman Mark Mace Bud Arnold
Doug PoebJs Guy Rolison
Ken Olson Jason Wells
Mary Embleton
OTHERS PRESENT: Mayor Bud Johnson
Mick DiFronzo ofDiFronzo & Company
Chairman Mark Mace called the meeting to order at 5:15 p.m.
The minutes of the May 1, 2003 meeting were approved as presented.
Mayor Johnson explained how helpful Gena Klotz was last year in comparing the
different proposed plans, and that when he contacted her again this year, she declined to
assist. She recommended that the city should continue with a similar resource. The
mayor continued by stating that there is awkwardness in the existing committee, which
will hopefully be addressed with the new committee. The existing committee will
function for this year until the new committee is formed. He introduced Mick DiFronzo,
who can serve as either a broker or a consultant.
Discussion followed regarding the process of how this resource (Mr. DiFronzo) was
brought to the committee. The objective is to compile good irfformation distributed in a
timely manner to be able to make an informed choice.
Mick then addressed the committee, and recommended that his services as consultant,
rather than an agent, be utilized by the city. He described his services as an objective,
informative conduit. He reviewed his credentials and abilities. He explained some of the
driving forces for health insurance increases as being technology, longer life, increasing
prescription drug costs, and uninsured people. He continued by describing the federal
movement towards affordable health insurance. And he emphasized that there is always
a push=and-shove between premiums and benefits.
Mick proposed that he would study the current plan and compare it with other employer's
plans. He would recommend whether to go to bid or not, and if the city wishes to go to
bid for the health insurance, he would prepare the Request for Proposal (RFP) at, er the
committee determined the specification of the plan.
Bud Arnold asked if the city had enough time to go to bid. The union representation
emphasized that they waated to keep the benefits, but not have to pay any premiums
above the caps.
Insurance Committee
Jane 4, 2003
Page 2
The current plan was briefly reviewed and some options were discussed. Mick pointed
out that 7.5% for the Blue Cross plan was a very good renewal rate increase. He also
stated that there are other dental plans available, and since the renewal increase was
29.8%, he thought it may be time to look at some options.
Mick's fees for service would be $125/br for consulting. If the city chose to go RFP, he
would charge $2,000 to conduct the bidding process from writing the RFP to setting up
the meetings with prospective bidders, and helping the city evaluate the proposals. He
estimated 3 to 7 hours to review the current plan and evaluate some Blue Cross options,
and recommends that this be done prior to deciding whether to go to bid or not.
Bud Arnold made a motion to recommend the followin~ to the council: Hire Mick
DiFronzo as a consultant, have him evaluate the current plan and compare with other
employer's plans, examine and evaluate the Blue Choice 80/20 plan, explore other Blue
Cross options such ns negotiate the $100 prescription drag deductible and look into
switching to the Blue Cross dental plan. The motion was seconded by Jason Wells, and
passed unanimously.
Mick will send a proposed agreement to Mary so that it may be presented at the June 10t~
council workshop. From there, the consultant agreement will go before the council on
June 17~.
The next committee meeting will be held on Wednesday, June 18t~ at 5:15 p.m.
The meeting adjourned at 6:50 p.m.
Respectfully submitted,
eton
Clerk/Treasurer