Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING AGENDA August 10, 2016 I. CALL TO ORDER Chairman Jennifer Fennema called the City of Henderson Self-Funded Insurance Committee Regular meeting to order at 10:06 a.m., in the Mayor and Council Boardroom, 4th Floor, City Hall, 240 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL Tedie Jackson, Council and Commission Services Reporter, confirmed the Self-Funded Insurance Committee meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, Fire Station No. 86, the Nevada Public Notice Website, the City of Henderson Website, and by mailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List. PRESENT: Chairman Jennifer Fennema Barry Courtney Jim McIntosh Tim O’Neill Dan Pentkowski Laura Shearin Jared Spangler (for Ken Kerby) EXCUSED: John Day Ken Kerby ALTERNATES: Mike Charlton Tom Chiello Shari Ferguson Maria Gamboa Curtis Germany STAFF: Kristina Gilmore, Asst. City Attorney II Tedie Jackson, CCS Reporter Alysa Neilson, Employee Benefits Coordinator ALSO PRESENT: Shawn Adkins, Gallagher Benefit Services Bill Bixler, The Loomis Company Sally Ihmels, Asst. Director of Human Resources Amy Wong, HR Business Partner Pam Levy, Sierra Health Options Self-Funded Insurance Committee Page 2 of 6 Wednesday, August 10, 2016 – Minutes III. PUBLIC COMMENT There were no comments presented by the public. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Mr. O’Neill introduced a motion to accept the agenda as presented, seconded by Mr. Pentkowski. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. V. NEW BUSINESS NB-1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE HUMAN RESOURCES For Possible Action. RECOMMENDATION: Adopt City of Henderson Self-Funded Health Insurance Committee regular meeting minutes of July 13, 2016. (Motion) Mr. O’Neill introduced a motion to accept the minutes of July 13, 2016, as presented, seconded by Chairman Fennema. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. NB-2 MONTHLY FINANCIAL REPORT HUMAN RESOURCES Self-Funded Health Plan monthly financial report. Maria Gamboa, Accounting Manager, reviewed the Self-Funded Health Insurance Fund report as of July 31, 2016; the Retiree Insurance Subsidy report; and the Stop Loss Restricted Cash flow. Mr. Chiello requested modification to the financial report to identify the number of post 65 retirees receiving 50% of the retiree subsidy. NB-3 LOOMIS MONTHLY CLAIMS REPORT Self-Funded Insurance Committee Page 3 of 6 Wednesday, August 10, 2016 – Minutes HUMAN RESOURCES Loomis monthly claims report. Bill Bixler, The Loomis Company, reviewed the paid claims analysis report, and noted that two large claims were added for July. He reported that there are currently 740 medical claims in inventory and 200 dental claims. Alysa Neilson, Employee Benefits Coordinator, reported that 43 members have signed up with Teledoc, and she has received mostly positive feedback. NB-4 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Pam Levy, Sierra Healthcare Options, distributed and reviewed the 2016 Monthly Length of Stay report for July 2016. NB-5 HEALTH PLAN OF NEVADA STATUS REPORT HUMAN RESOURCES Health Plan of Nevada status report. This report was not provided. NB-6 GALLAGHER BENEFIT SERVICES STATUS REPORT HUMAN RESOURCES Gallagher Benefit Services status report. Shawn Adkins, GBS, reported that the Department of Justice has concerns regarding the mergers with Cigna and Anthem and Humana and Aetna, so they may not go through. He reviewed the GBS Estimated Accrual Plan Status Report, Active versus Retiree, Large Claim Summary, Net Medical and Rx Cost Analysis. NB-7 SELF-FUNDED HEALTH INSURANCE COMMITTEE BY-LAWS Self-Funded Insurance Committee Page 4 of 6 Wednesday, August 10, 2016 – Minutes HUMAN RESOURCES Present final restated Self-Funded Health Insurance Committee By-Laws. Kristina Gilmore, Assistant City Attorney II, noted administrative clarifications on page 4, Section VI, Appeals and Requests for a Benefit Change. All members will be sent a revised copy of the bylaws. NB-8 SELF-FUNDED HEALTH INSURANCE COMMITTEE CHAIR HUMAN RESOURCES Take nominations and elect committee chair to serve remainder of calendar year 2016. Ms. Fennema nominated Tim O’Neill as Chairman for the remainder of 2016, seconded by Mr. Pentkowski. The vote favoring approval was unanimous. Mr. O’Neill accepted the nomination of Chairman. NB-9 SELF-FUNDED HEALTH INSURANCE COMMITTEE VICE-CHAIR HUMAN RESOURCES Take nominations and elect committee vice-chair to serve the remainder of calendar year 2016. Mr. O’Neill nominated Laura Shearin as Vice-Chairman for the remainder of 2016, seconded by Mr. Pentkowski for remainder of 2016. The vote favoring approval was unanimous. Ms. Shearin accepted the nomination of Vice-Chairman. NB-10 SELF-FUNDED HEALTH PLAN DESIGN HUMAN RESOURCES For Possible Action. RECOMMENDATION: Adopt various plan design changes. Revise plan design effective January 1, 2017 for the purpose of creating plan savings of at least $350,000. Shawn Adkins, GBS, reviewed the following Plan Design Options: eliminate Self-Funded Insurance Committee Page 5 of 6 Wednesday, August 10, 2016 – Minutes vision contribution, eliminate Delta Dental implicit subsidy, reduce mail order maintenance Rx copay, five-tier specialty – no grandfathering, and five-tier specialty – copay override. He noted that Express scripts will have the report on the disruption later this week. It was noted that the target number for savings is $350,000.00. Concerns were expressed regarding only having six-months of data regarding the savings for 2016. A discussion ensued regarding making good business decisions and to consider inflation. A concern was noted regarding increasing the out-of-pocket maximum 25 percent, and a suggestion was made to increase the out-of-pocket maximum in tiers. (Motion) Ms. Fennema introduced a motion to increase the out-of-pocket maximum to $2,500.00 for individuals and $5000.00 for families, to be effective January 1, 2017, seconded by Jim McIntosh. The roll call vote was: Those voting Aye: Fennema, McIntosh, and Shearin. Those voting Nay: Courtney, O’Neill, Pentkowski, and Spangler. Those Abstaining: None. Those absent: Day. Chairman Fennema declared the motion failed. (Motion) Mr. O’Neill introduced a motion to increase the out-of-pocket maximum to $2,375.00 for individuals and $4,750.00 for families, to be effective January 1, 2017, second by Mr. Pentkowski. The roll call vote was: Those voting Aye: Courtney, O’Neill, Pentkowski, and Spangler. Those voting Nay: Fennema, McIntosh, and Shearin. The Abstaining: None. Those Absent: Day. Chairman Fennema declared the motion carried. . Mr. Adkins will provide estimated savings of the out-of-pocket maximums at the next meeting. A discussion ensued regarding Dispense as Written (DAW) Program options. DAW 1 Program would require members to take a generic equivalent prescription if available. (Motion) Ms. Shearin introduced a motion to adopt the DAW 1 Program, to be effective January 1, 2017, seconded by Mr. O’Neill. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. Self-Funded Insurance Committee Page 6 of 6 Wednesday, August 10, 2016 – Minutes (Motion) Mr. Pentkowski introduced a motion to move to a six (6) tier prescription drug program with co-pay changes to the specialty drug tiers as follows: Generic/Bio Similar $75, Preferred Brand $100 and Non-Preferred Brand $175 with grandfathering, to be effective January 1, 2017, seconded by Mr. O’Neill. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. NB-11 INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFIT PLANS (IFEBP) HUMAN RESOURCES Discuss attendance at the 2016 IFEBP Annual Conference to be held November 13-16, 2016 in Orlando, Florida. Sally Ihmels and Tim O’Neill are signed up to attend this conference. Anyone else interested should contact Ms. Neilson. VI. CHAIRMAN\MEMBER COMMENTS Mr. Pentkowski asked to review the minutes regarding the discussion pertaining to changes to spousal coverage. VII. SET NEXT MEETING The next meeting was set for September 14, 2016, from 10:00 a.m. to 12:00 p.m. VIII. PUBLIC COMMENT There were not public comments presented. IX. ADJOURNMENT There being no further business to be discussed, Chairman Fennema adjourned the meeting at 12:00 p.m. Respectfully submitted, ________________________ Tedie Jackson, CCS Reporter