Health Insurance Advisory Committee

Employee Health Insurance Advisory Committee Minutes November 1st, 2016 Meeting called to Order – 8:30 a.m. Minutes from November 6, 2015 meeting approved Old business – None Emily Bates introduced Kerry Baugher, Kari Unterbrink and Ben Crowder from Cornerstone Insurance Group (formerly Baugher Financial). Kari Unterbrink outlined the renewal process and bid quotes for medical coverage. Current carrier, Coventry, was purchased by Aetna-and is no longer Coventry Health Care of Missouri. Therefore, there is not renewal plan exactly as it stands today for the upcoming 2017 year offered. Renewal bids were requested and received from Aetna, United Healthcare and Blue Cross Blue Shield. Negotiations to original rate proposals were made. Minimal coverage changes were made to arrive at final quotes: Aetna- 8.8% increase over current Coventry premiums, United HealthCare-2.1% increase and Blue Cross Blue Shield-3% increase. The recommendation from Cornerstone and presented to Committee was to choose United HealthCare. There will be a cost change to Tiers #2 and #3 prescription coverage for PPO coverage-Tier #1 $10 generic remains the same, Tier #2 from $25 to $35 and Tier #3 from $50 to $60. Also the HRA funding would reduce from 20% to 12%, still sufficient to grow/maintain the Group Health Insurance Fund. Concern was raised on the increase of the prescription drugs and the impact on employees/dependents, especially for those on maintenance meds. H.S.A. contributions were reduced from $70 to $53 each month to sustain a lower overall premium increase as well. Discussion followed on promoting wellness. Kari noted United Healthcare has an established wellness program with rewards for employee participation. Principal dental/vision premiums will increase 5% Jan 1st, 2017, due to usage and industry trend with no change in coverage. No increase in Principal life premiums. It was announced the current balance of the Group Health Insurance Fund was $409,571.39. No increase in fees for consulting and administration of the City’s medical, dental, vision, life Health Reimbursement Arrangement or Flexible Spending Account plans from Cornerstone/Baugher Financial for 2017. Bob Pfeiffer made a motion to accept the 2017 health insurance renewal package 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 committee’s approval, the 2017 Health insurance renewal will be forwarded to Finance Committee for their next meeting November 9th, 2016 and if approved, will be placed on the agenda for final approval at the next Council Meeting to be held November 15th, 2016. Open enrollment meetings are scheduled for November 16th and 17th, 2016. UHC enrollment forms will need to be completed by all employees due to a change in carriers. 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