HomeMy WebLinkAboutInsurance Committee Minutes 07.02.2003 INSURANCE COMMITTEE MINUTES
JULY 2, 2003 5:15 P.M.
OLD COUNCIL CHAMBERS
MEMBERS PRESENT: Chairman Mark Mace Bud Arnold
Ken Olson Guy Rolison
Doug Poehls Jason Wells
Mary Embleton
OTHERS PRESENT: Mick DiFronzo ofDiFronzo & Company
Chairman Murk Mace called the meeting to order at 5:15 p.m. No public attended the
meeting.
The minutes of the June 18, 2003 meetin4; were approved as presented.
Mick DiFronzo presented the resuks of his negotiations with Blue Cross/Blue Shield, which
are attached to these minutes. He was able to: keep the same health insurance benefits while
lowering the premium rate increase fi.om 7.5% to 5.5%, move the dental fi.om Fortis to Blue
Cross/Blue Shield, eliminate the $100 deductible for prescription drags, and reduce the
dental deductible to $25 or $50 per family. The premiums for these changes remain under
the caps, so there is no out-of-pocket premium costs for employees.
Miek also explained the advantage of changing companies for dental coverage fi.om Fortis to
Blue Cross/Blue Shield. The $1,500 maximum (which begins January 1~t of each year) will
start again on 8/1 due to the new policy with Blue Cross. The deductible also starts again on
8/1. Then, on January 1 ~, they will start over and go to a calendar year. Also, there will be
no waiting periods or pre-existing conditions. This is an advantage to the employees who
need dental work done, as they ure in effect, receiving two year's worth of benefits in one
year by making the switch to Blue Cross. Discussion and questions followed.
Mick also presented a quote for life insurance coverage. The current life insurance policies
ure with Fottis. The new company, Medical Life Insurance Company, is affiliated with Blue
Cross, and would also save premium dollurs for the city.
In preparation for next year, Mick introduced the Health First 80/20 plan. This is a PPO plan
where any doctor can be used, but you must use St. Vincent's Hospital. The group would
still get discounts under this plan.
Adler more questions and discussion, Bud Arnold made a motion to recommend to council to
accept the negotiated proposal as presented by Mick DiFronzo. The motion was seconded by
Jason Wells, and the committee voted unanimously in favor. The Union will meet next
Wednesday to formalize acceptance of the proposal, and then the Council can act on the
recommendation on July 15th.
Insurance Committee
July 2, 2003
Page 2.
The committee thanked Mick for his excellent work. Discussion was then hem regarding the
next meeting, and it was determined that another meeting should be held to review reports on
claims, which Mary will request on a quarterly basis. The information tix)m these reports
will be shared with the committee only, due to the new privacy laws.
When asked if there were any new developments in the insurance industry, Mick replied that
federal legislation is still being worked on to assist employers with the increasing costs of
premium, and to change the medical savings accounts regulations to make them more like an
IRA.
The meeting adjourned at 6:00 p.m.
Respectfully submitted,
Clerk/Treasurer