Employee Health Benefits Plan

APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING November 17, 2021 1. Declaration of a Quorum, Call Meeting to Order, and Roll Call. With a quorum present, the November 2021 Meeting was called to order at 10:04 a.m. by Chairman Xavier Hancock. The following Trustees and persons were in attendance: Xavier Hancock (Chair) - Trustee Rasha Sharhan – HUB International Christopher Anderson (Vice-Chair) – Trustee Julian Fontana – HUB International Kent Etienne – Trustee Tammy Jacobs – City Staff Susan Keeble – Trustee Donna Fairweather – City Staff Andrew Jefferies – Trustee Christy Shinn – City Staff 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 October 25, 2021. Motion to approve the Minutes from the October 25, 2021 Meeting made by Andrew Jefferies with a second by Christopher Anderson. Unanimously Approved by those Trustees present. 5. Receive financial reports as of September 2021 to include large claim cases and plan reimbursements. Discuss financial projections for FY2021 and plan year 2022. Julian Fontana provided the board with monthly reporting. The plan is running at 128% of cost as premium equivalent. The medical and prescription for the plan is running normal at 80% being medical and 20% being pharmacy. The plan is at 95% of maximum claims and 118% of expected claims. The plan is not expecting to receive aggregate stop loss reimbursement. There are two claimants receiving specific stop loss. The City is running at 123% of costs as premium equivalent, 96% of maximum claims, and 116% of expected claims. The Park Board is running at 97% of costs as premium equivalent, 69% of maximum claims, and 82% of expected claims. Many of the high claimants have ongoing issues and the costs are not for single incidents. A Utilization report was provided for quarter 3. Enrollment has stayed consistent and plan demographics have not changed. There was a slight increase in dependent participation. 99.5% of claims were paid in the network. The overall discount in network was 66.9%. BCBSTX is guaranteeing discounts at this range or higher. It cannot drop below 65%. BCBSTX is meeting the performance guarantee. Some large claimants have dropped off for during this period and the claims experience is better overall. Specialty drug spend has remained constant which is favorable for the plan. Prescriptions have increased by 20%. The generic dispensing at 87%. Kent Etienne delivered an update to the board regarding the American Rescue Plan Act ARPA provided members access to fully subsidized COBRA coverage from April 2021 – September 2021. The City had one plan member that qualified and the plan must pay for this member’s premiums for medical, dental, and vision. The cost was roughly $4,500.  APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING November 17, 2021 6. Discuss plan projections and recommendations for plan structure. Kent Etienne informed the board about immunization coverage changes. Under Boon Chapman all vaccines were filtered through CareHere. Our plan prohibited vaccines at pharmacies. Most plans offer vaccine coverage at pharmacies as well. The current plan with BCBSTX now covers immunizations in pharmacy effective October 1, 2021. Julian Fontana informed the board about specialty drug tiers. It was recommended that an additional tier be included for specialty drugs. There was a 4th tier but it mimicked the retail drugs which is not standard practice. It has been recommended to BCBSTX that the tiers be $50/$100/$150. Kent Etienne informed the board that Julian and HUB are reviewing the proposals for stop loss renewal. The proposed increase is 10%. The recommendation is going to be with BCBSTX. The other renewals were over 20% higher. Projections provided by HUB included a 15% increase. 7. Discuss tentative date(s) for next Board Meeting. Tentatively agreed upon for Tuesday, November 30, 2021 at 10:00 a.m. 8. Adjournment. The meeting was adjourned at 10:48 a.m. ______________________________ Tuesday, November 30, 2021 Xavier Hancock, Chair Date Approved