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HomeMy WebLinkAboutInsurance Committee Minutes 06.12.2018MINUTES INSURANCE COMMITTEE JUNE 12, 2018 9:00 A.M. COUNCIL CHAMBERS CONFERENCE ROOM Mayor Nelson Bruce McGee, City Council Member Heidi Sparks, City Council Member Kelly Strecker, Clerk's Office Stan Langve, Union 303 Jessica McCartney, Union 303 Monica Salo, Union 316 Sheri Phillips, Union 316 Roy Voss, Union 316 Dave Allen, Allen and Associates Eric Allen, Allen and Associates Each union and non-union representatives gave feedback they received from their respective groups. Both Stan and Jessica asked for feedback from their union members. Stan received one email back stating their preference was to stay with Blue Cross Blue Shield of Montana (BOBS). Jessica had had discussions with as many members as possible. The overall consensus was they wanted to stay on BCBS. No one was in favor of moving to MMIA or the Health Co-op. Most expressed their desire to stay on BCBS as the benefits were known. There were no strong oppositions to Pacific Source, just the unknown of exactly what the plan would be. Roy, Monica, and Sheri had Allen and Associates present all plans at their union meeting the previous day. No one was in favor of MMIA or the Health Co-op. After the presentation, their union took a vote and endorsed the move to Pacific Source as the Cities insurance provider. The key points that sold them on Pacific Source were the brick and mortar store opening soon, customer service, the cost savings, and the offering of two 80/20 plans with either $500 or $1,000 deductible. Kelly followed up with the non-union employees. No one was in favor of MMIA or the Health Co-op. Four stated they didn't mind staying and four stated they didn't mind changing. She questioned if employees could potentially need to change physicians. Eric clarified that while BCBS has between 94% to 95% of all physicians in -network, Pacific Source has 89% to 90% of physician's in -network. There may be a small percentage of employees that see a provider who is not in -network. He also stated that Billings Clinic recently transitioned their employees to Pacific Source from BCBS. He reiterated that Pacific Source does offer the City savings this year and that if in this year the City is not satisfied with its coverage they can ask for quotes for next year and consider changing service providers. Council Workshop Minutes of June 7, 2018 Insurance Committee was reminded that BCBS is changing their framework soon and that the City is grandfathered into its policy for this year and those same offerings most likely will not be available next year. Jessica spoke to her personal experience of dealing with BCBS and how some things were not billed as she had expected. Dave reminded the Committee that he has had employees call and ask him to drill down why something was billed the way it was. While he is unable to change how things are billed, he can help identify why the insurance company processed the claim the way they did. He has found errors in the coding and was able to assist the employee in remedying the situation. Currently, the City is in a month to month contract with BCBS. Pacific Source is also a month to month plan. The City is guaranteed the stated rate for the next 12 months. Pacific Source is also willing to give credit for the deductible already incurred by the employee. They will hold processing claims for July to see what claims BCBS process to ensure the proper deductible credit is given. The Mayor received a question why Billings is able to keep their costs so low. The Mayor looked into what Billings does and found that they are self-insured and that they use EBMS to manage their claims. This is not an option for the City at this time. Due to both unions coming forward with different recommendations and the non-union employees not voicing a strong opinion, either way, the Committee discussed which option they felt their respective groups would be ok with. Both unions agreed with Kelly that they did not encounter anyone who strongly felt the need to stay with BCBS. They discussed the cost savings are moving to Pacific Source could offer the employee when they add their family and/or children. It was reiterated that both plans mirror one another and that the employee would not lose coverage. There was a question if the City would need to reduce the cap on what the employer will contribute to the employees' health benefit. It was clarified that the cap should not be an issue. Union 316 discussed this issue, and no one voiced an issue. It was questioned if Pacific Source is chosen, which plan would allow the City to pay for employee only. Both the $1000 and $500 deductible were less than what the City is currently spending. It was clarified that Council would need to clarify which plan the City would pay for. It was also clarified that Pacific Source would automatically enroll employees into the plan they currently have. If they want to make a change to a different plan, they would need to fill out the appropriate form. Council Member McGee stated that he sat down and looked over these plans as if he were purchasing a policy for him and his family. Which plan was the most comprehensible and for what cost? He independently concluded that Pacific Source was the best option, not only by what the plans covered but also by cost. 0) Council Workshop Minutes of June 7, 2018 Council Member Sparks reviewed the documents in a similar manner. She also concluded that Pacific Source was the best option for the City at this time. Dave clarified that Pacific Source would be able to get temporary cards to all employees by 7/1/2018 if the Council choose them as the insurance provider. The Insurance Committee voted to recommend Pacific Source's quote to Council for final approval. All present in favor of the recommendation. The Insurance Committee adjourned at 9:42 a.m. Respectfully submitted, Brittney Moo n Administrative Assistant 3