Employee Health Benefits Plan

APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING September 28, 2021 1. Declaration of a Quorum, Call Meeting to Order, and Roll Call. With a quorum present, the September 2021 Meeting was called to order at 2:01 p.m. by Chairman Xavier Hancock. The following Trustees and persons were in attendance: Xavier Hancock (Chair) - Trustee Jeremi Smart - Trustee Christopher Anderson (Vice-Chair) – Trustee Mike Weaver – HUB International Kent Etienne – Trustee Julian Fontana – HUB International Michael Loftin – Trustee Donna Fairweather – City Staff Andrew Jefferies – Trustee Tammy Jacobs – City Staff Susan Keeble – Trustee Christy Shinn – City Staff * Arrived at 2:29 p.m. 2. Conflicts of Interest. None. 3. Public Comment on Agenda Items and Non-Agenda Items. The City Council adopted a policy requiring that agendas for all City board, commission, and committee meetings include a section designated for public comment on both agenda items and non-agenda items. Members of the public may submit a public comment using the web link below. All comments submitted prior to the meeting will be provided to the Board of Trustees. https://forms.galvestontx.gov/Forms/PublicComment A. Agenda Items B. Non-Agenda Items No Public Comment was received. 4. Approval of the Minutes for the Regular Board Meeting of August 31, 2021. Motion to approve the Minutes from the August 31, 2021 Meeting made by Kent Etienne with a second by Andrew Jefferies. Unanimously Approved by those Trustees present. 5. Receive financial reports to include large claim cases and plan reimbursements. Discuss financial projections for FY2021 and plan year 2022. Julian Fontana with HUB provided financial reports through July 2021. The plan is running at 126% of total costs as premium equivalent. The medical and prescription ratio is trending as normal. Kent Etienne informed the board that the City has been working with the Port to handle the reimbursement owed from the Port. The majority of the claims have been accounted for. Julian Fontana reported that the plan is running at 92% of maximum claims and is at 115% of expected claims. The plan has two members in stop loss. One is no longer on the plan and the other is ongoing. There are 15 plan members over $75,000. The active member claims are up and retiree claims are down. The City is running at 121% total costs as premium equivalent. The City retiree cost has high pharmacy claims. The City is at 93% of maximum claims and is running at 112% of expected claims. The City has one plan member in stop loss reimbursement and has 13 large claimants over $75,000. The large claimants have impacted the rolling per employee per month costs. Retiree costs have come down to half of this time last year. They are a small population so it can be hard to predict what will happen.  APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING September 28, 2021 The Park Board is a younger population. The Park Board is running at 106% total costs as premium equivalent. They do have a large claimant. The Park Board is at 79% of maximum claims and 94% of expected claims. 6. Discuss and consider for action the Pharmacy Benefit Management plan review and renewal with BCBSTX. Julian Fontana provided the board a report that overviews the pharmacy benefit analysis. The plan with BCBSTX is on par with other options that are available. The pharmacy plan includes administration costs and rebates. Discounts go up when using higher volume supply such as 90 day and mail order. What has been negotiated with BCBSTX is competitive with that is offered nationally. BCBSTX has a lower rebate allocation that they share compared to independent pharmacy management. They did throw an additional rebate on top of it that makes up for the difference. The plan will have a $40.91 rebate PEPM for 2022. Health Action Council/CVS is at $55.52 and Optum is at $60.60. The projected savings for 2022 is $60,000 under the current renewal. HUB is not recommending switching to another option at this time. 7. Discuss and consider for action plan recommendations from HUB international to include increased deductible and other proposed plan modifications. Kent Etienne reminded the board that the previous meeting included a number of changes that were considered by the board. The deductible and out of pocket maximum were not addressed. After further conversations with HUB we have learned that making changes to the deductible would create nominal changes to the plan fund. It would impact the plan members directly as an added expense to them. Motion to maintain the current deductible and out of pocket maximum for individual and family coverage for plan year 2022 made by Kent Etienne with a second by Susan Keeble. Unanimously Approved by those Trustees present. 8. Discuss tentative date(s) for next Board Meeting. Tentatively agreed upon for Monday, October 25, 2021 at 2:00 p.m. 9. Adjournment. The meeting was adjourned at 2:37 p.m. ______________________________ Monday, October 25, 2021 Xavier Hancock, Chair Date Approved