Health Insurance Advisory Committee

Employee Health Insurance Advisory Committee Minutes November 7th, 2014 – 8:30 a.m. Meeting called to Order – 8:35 a.m. Old business – None Emily Bates introduced Kerry Baugher and Kari Unterbrink from Baugher Financial & Associates. Kerry outlined the renewal process and bid quotes from Coventry: #1 renewal at exact same current coverage, #2 renewal with a change in deductible and #3 an alternate plan with a change to prescription drugs. Also a quote was received from United Health Care. The recommendation from Baugher Financial was plan #3-to continue with Coventry with a change to prescription coverage: For PPO coverage-Tier 1 from $8 to $10 generic, Tier #2 from $15 to $25 for formulary drugs, and Tier #3 from $40 to $50 for non-formulary drugs. This plan would result in a 1.6% decrease in premiums. Also the HRA funding would reduce from 30% to 25%. The HSA plan would also have increases in drug coverage and a decrease to employer funding. Concern was raised on the increase of the prescription drugs and the impact on employees/dependents, especially for those on maintenance meds. Discussion followed on promoting wellness and in 2015 again focusing on a City Wellness Program. Principal dental rates will increase 4% Jan 1st, 2015, due to usage and industry trend with no change in coverage. A change in Principal vision coverage to VSP will also become effective Jan 1st, 2015 with no increase in premium rates. Bob Pfeiffer made a motion to accept the 2015 health insurance renewal with a note of concern regarding the prescription increase. This was seconded by Paula Brockmeyer. Those voting in favor-All. Opposed-None. Due to the approval, the 2015 Health insurance renewal will be forwarded to Finance Committee for their next meeting November 13th, 2014 and if approved, will be placed on the agenda for final approval at the next Council Meeting to be held November 18th, 2014. Open enrollment meetings are scheduled for December 8th and 9th, 2014. Employees will be notified by email, payroll stuffers and Retirees will receive a mailing to their homes. Meeting adjourned at 9:15 a.m. rb