Employee Health Benefits Plan

APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING January 25, 2022 1. Declaration of a Quorum, Call Meeting to Order, and Roll Call. With a quorum present, the second January 2022 Meeting was called to order at 10:00 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 Mike Weaver – HUB International Susan Keeble – Trustee Donna Fairweather – City Staff Andrew Jefferies - Trustee Tammy Jacobs – City Staff Mike Loftin – Trustee Christy Shinn – City Staff *left at 10:37 a.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 November 30, 2021. Motion to approve the Minutes from the November 30, 2021 meeting made by Kent Etienne with a second by Michael Loftin. Unanimously Approved by those Trustees present. 5. Receive financial reports as of December 2021 to include large claim cases and plan reimbursements. Discuss financial projections for FY2021 and plan year 2022. Julian Fontana presented financial reports to the board. The plan is operating at 155% of costs as premium equivalent. Retiree costs are 44% prescription and 56% medical. Active employees are in line with trend at 20% prescription and 80% medical. For 2021 the plan was at 125% of expected claims and met 100% of maximum claims. In 2021 the plan had 30 large claimants over $75,000. Three plan members hit the individual stop loss reimbursement. Some large claimants will have claims paid in 2022 and remain on the  APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING January 25, 2022 plan. Major issues include renal failure and cancel. From January 2020 to December 2021 the claims increased about 28%. Plan utilization has continued to be high. The plan hit the aggregate stop loss for 2021 and should expect $37,000 in stop loss. The Park Board has continued to run favorably. The Park Board is at 86% of claims as premium equivalent. The Park Board is at 79% of expected claims and 66% of maximum claims. The Park Board has two large claimants over $75,000. No large claimants have exceeded individual stop loss. The Park Board costs have trended downward. The City is at 152% of costs as premium equivalent. The City is at 124% of expected claims and 104% of maximum claims. There are 27 large claimants over $75,000 and two have entered individual stop loss. The Port ended at 153% of claims as premium equivalent, 133% of expected claims, and 111% of maximum claims. One plan member hit stop loss reimbursement. Julian Fontana informed the board that he contacted BCBSTX to have them provide a plan review presentation at the next board meeting. Only 10% of plan members did not have a claim in 2021. Benchmark is 15-20% on average. Utilization is high on the plan. The plan has chronic diseases, obesity, heart disease, and diabetes. Preventative screenings are the most effective way to control plan costs. Julian shared a utilization report from BCBSTX. The report showed that claims increased 16.9% for 2021. Mike Loftin reported that the City recovered funds through the CARES Act and put some into the health plan to aid in the reserve. The reserve is at an estimated 90 days of plan costs. 6. Discuss tentative date(s) for next Board Meeting. Tentatively agreed upon for Wednesday, February 23, 2022 at 10:00 a.m. 7. EXECUTIVE SESSION The Board convened into Executive Session at 10:37 a.m. under items 6A and 6B. During that time, the plan member was allowed to present the appeal to the Board in the closed session. The Board Members also received information from HUB International representatives. Consultation was held with City Legal staff under item 6B. The Board reconvened into open session at 11:34 a.m. A. Pursuant to Texas Government Code Section 551.0785 to deliberate (1) the medical or psychiatric records of an individual for a benefit from the Plan; or (2) a matter that includes consideration of information in the medical or psychiatric records of an individual for a benefit from the plan.  APPROVED MINUTES BOARD OF TRUSTEES FOR THE CITY OF GALVESTON EMPLOYEE HEALTH BENEFITS PLAN REGULAR MEETING January 25, 2022 • An appeal filed by a Plan Member regarding the denial of certain health coverage. B. Pursuant to Texas Government Code Section 551.071(2) “Consultation with Attorney” to discuss and receive legal advice on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Texas Government Code. • An appeal filed by a Plan Member regarding the denial of certain health coverage. 8. Adjournment. The meeting was adjourned at 11:30 a.m. ______________________________ Wednesday, February 23, 2022 Xavier Hancock, Chair Date Approved