HomeMy WebLinkAboutInsurance Committee Minutes 03.28.2016 March 28, 2016
Insurance Committee Meeting
Present: Heidi Jensen, Shirley Ewan, Cheryll Lund, Monica Salo, Roy Voss,Jason Wells,Stan
Langve,Tom Nelson and Bruce McGee (arrived at 2:05 p.m.)
Guests: Dave Allen,Sheri Phillips
Chair Heidi Jensen called the meeting to order at 1:32 p.m.
No Public Comment
Minutes from February 29, 2016: Dave Allen stated he may have misspoken, 2016-17 rate info
will be released on April 22nd, not March 22"d, as stated in the February minutes.
New committee Member: Roy Voss was introduced as the new Union 316 representative,
replacing Jason Shovar.
Dave Allen, 2016 Insurance Presentation: Dave handed out a "recap" of information from
February meeting. That is enclosed with these minutes. Dave basically said to expect a large
increase,we had a very high usage year, approximately$505,000 paid out in claims, compared
to$244,000 the previous year. Dave has spoken to Allegiance (MMIA)and they said they don't
expect their quote to be any better than last year (high). Pacific Source limits to Billings Clinic
use. Heidi stated that she has worked with Associated Employers at Head Start and they are
"terrible and expensive".
Dave is going to see about BCBS doing some underwriting by re-designing our current plans;
would look at co-pays, prescription benefits and out of pocket. Also need to start exploring
Health Savings Plans/Accounts.
Heidi has recommended that we not have employees fill out health statements/evaluations and
stay with and negotiate with BCBS. Jason Wells stated that he would still like the committee to
try every avenue,whether it's bids, completing health statements, or even more restrictive
insurance; need to look around as much as we can. Roy Voss stated that we have taken every
cut we can, such as dropping spouses and/or children.
Dave stated it doesn't cost anything to do the Health Statements,just are time consuming. We
can work on selling, educating fellow employees with Health Saving Plans/Accounts with
employee information workshops or meetings.
Union reps said if they can go back to members with information regarding our claim numbers
to help educate to see if we can support Wellness programs and anything to help get the claim
numbers down. It is understood that we can't talk about age due to HIPPA and the City is EOE.
Need to provide "due diligence" is searching for the best deal.
Dave Allen was asked to continue with fact finding with BCBS, MMIA/Allegiance, Pacific Source
and Associate Employers; also with a "universal health statement form".
On April 25th we can start having employees fill out the forms and have them signed and turned
in to Dave on May 2"d. Union reps will again stress the importance to their union members of
completing the forms fully, without hassle, and of the deadline.
Bruce and Tom would like to receive a copy of the blank health statement.
Wellness Committee: Short discussion on tracking in-house wellness programs; long term
goals;flex, premium money incentives.
Resolution Committee: Heidi said they are working with the Local Council Government Center
on revising resolutions.
Heidi will set up the next meeting after Dave Allen receives our rate increases/more
information.
Meeting adjourned at 2:30 p.m.
Respectfully submitted,
Monica Salo
Insurance Committee Meeting 03-2816
Recap:The Affordable Care Act was scheduled to implement a change in the definition of"Small Group"
effective 1-1-16.This change would have been good for the City of Laurel because,upon renewal,we would
have been able to expect rates based solely on the age of each of our employees.President Obama agreed
with t`ie cautionary advice he received that if this portion of the law were to be implemented there would
have been many adverse effects both to insurance companies and to the resultant rates that all other"small"
groups would be assessed.The President signed the PACE act,effectively retaining the definition of"small
group`.This means that for the City of Laurel,the future rates will continue to be determined by an
underwriting process that will require that our rates be sufficient to pay for the perceived risk plus the cost of
administration
BCBS renewal rates will be available mid to late April,2016. My expectation is that,because of the loss ratio of
the previous 12 months,we should expect a rate increase well above the 9 to 10%current trend. The options
that are available to the City of Laurel are rather limited,so it was not difficult to come up with this
assessment.
Marty McDevitt;the Regional Marketing Director of Allegiance,suggested,when I contacted him,that we
"look into MMIA Trust._since we are the administrator of that Association_.". As you perhaps recall,we did
contact the MMIA last year.Amanda Clark(MMIA)replied"we can certainly develop a quote for the City if
they are interested I can say that if their claims have gone up,the quote would beat least as much as we gave
last year if riot higher." Last year they told us that"if you)(pin our program and accept these 60%higher than
standard rates,you will remain in this rate tier for your five year commitment period."
Montana Health Coop,as per Jarett Laden,has made a corporate decision to not pursue groups of over 50
employees.
This leases Pas`ic Source and Associated Employers Trust.Pacific Source is willing to underwrite a quote for us
this year.That will entail completing Health Statements. If we decide to pursue this option,they will not
underwrite more than 60 days ahead of our renewal date.As a side note, it is interesting to me to know that
the underwriter at Pacific Source used to be employed at BCBS of Montana in their underwriting department.
Heidi has definite opinions(many of which I share),concerning Associated Employers so I will leave her to
address that option.
As to what I recommend from the BCBS perspective,there are some good options.Because the current plan
designs contain several first dollar benefits,we could ask underwriting for some premium relief by re-designing
our current plans In addition,I would recommend that we provide the option of a Health Savings plan.
Typically this design of plan appeals to the younger employees and those that consider themselves generally
healthy. Additionally people are becoming very aware of the tax benefits of the contributions to,and using
those funds from the N.S.A.
Sincerely, Dave Allen