Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING MINUTES Wednesday, August 16, 2017 I. CALL TO ORDER Chairman Tim O’Neill called the City of Henderson Self-Funded Insurance Committee Regular meeting to order at 2:10 p.m., in the Mayor and Council Boardroom, 4th Floor, City Hall, 240 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL Alysa Neilson, Employee Benefits Manager 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 Tim O’Neill Barry Courtney John Day Jennifer Fennema Jim McIntosh Dan Pentkowski EXCUSED: Ken Kerby Laura Shearin ALTERNATES: Michal Charlton Tom Chiello Maria Gamboa Curtis Germany STAFF: Kristina Gilmore, Asst. City Attorney II Sally Ihmels, Asst. HR Director Tedie Jackson, CCS Reporter Alysa Neilson, Employee Benefits Manager Hannah Nelson, Employee Benefits Specialist GUESTS: Shawn Adkins, GBS Pam Levy, Sierra Healthcare Options Amber Hubber, HPN Self-Funded Insurance Committee Page 2 of 6 Wednesday, August 16, 2017 – Minutes III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (Motion) Mr. Pentkowski introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman O’Neill declared the motion carried. V. UNFINISHED BUSINESS UB-1 EMPLOYEE ASSISTANCE PROGRAM BEHAVIORAL HEALTHCARE OPTIONS CONTRACT RENEWAL HUMAN RESOURCES For Possible Action. RECOMMENDATION: Accept Behavioral Healthcare Options' three-year rate renewal for recommendation to City Council for approval. Review three-year contract renewal proposal submitted by Behavioral Healthcare Options and make recommendation to City Council for approval. The three- year contract renewal terms include: 01-01-2018 through 12-31-2018 $4.30 Per Employee Per Month (no increase over current rates) 01-01-2019 through 12-31-2019 $4.30 Per Employee Per Month - Fee may be reduced based on utilization rate for 2018. Utilization Rate 2018 10%-16% - $4.30 Per Employee Per Month 7%-9.99% - Adjusted $3.62 Per Employee Per Month 5%-6.99% - Adjusted $2.60 Per Employee Per Month 01-01-2020 through 12-31-2020 $4.30 Per Employee Per Month - Fee may be reduced based on utilization rate for 2019. Utilization Rate 2019 10%-16% - $4.30 Per Employee Per Month 7%-9.99% - Adjusted $3.62 Per Employee Per Month 5%-6.99% - Adjusted $2.60 Per Employee Per Month Alysa Neilson, Employee Benefits Manager, presented a summary of this item and reviewed the three-year contract renewal proposal. Self-Funded Insurance Committee Page 3 of 6 Wednesday, August 16, 2017 – Minutes (Motion) Dan Pentkowski introduced a motion recommending approval of the three-year option rate renewal for Behavioral Healthcare Options. The vote favoring approval was unanimous. Chairman O’Neill declared the motion carried. VI. NEW BUSINESS NB-2 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE JULY 19, 2017 HUMAN RESOURCES Self-Funded Health Insurance Committee regular meeting minutes of July 19, 2017. (Motion) Mr. Pentkowski introduced a motion to adopt the minutes of July 19, 2017, as presented. The vote favoring approval was unanimous. Chairman O’Neill declared the motion carried. NB-3 MONTHLY FINANCIAL REPORT HUMAN RESOURCES City of Henderson Self-Funded Health Plan monthly financial report. Maria Gamboa, Accounting Manager, reviewed the monthly financial report, retiree insurance subsidy, and stoploss restricted cash of July 30, 2017. It was noted that the number of City retirees taking the retiree insurance subsidy has exceeded projections. This issue should be discussed at the annual strategic planning meeting. NB-4 LOOMIS MONTHLY CLAIMS REPORT HUMAN RESOURCES Loomis monthly claims report. Shawn Adkins, GBS, reviewed the monthly claims report, and noted large claimants. Self-Funded Insurance Committee Page 4 of 6 Wednesday, August 16, 2017 – Minutes NB-5 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Pam Levy, SHO, distributed and reviewed the quarterly provider report. She noted the average length of stay report is not available for this meeting. NB-6 GALLAGHER BENEFIT SERVICES STATUS REPORT HUMAN RESOURCES Gallagher Benefit Services status report. Shawn Adkins, GBS, reported there is no update on amendments to PPACA. He suggested the Cadillac Tax issue be discussed at the annual strategic planning meeting. NB-7 HEALTH PLAN OF NEVADA MEDICAL INSURANCE PROPOSAL FOR PLAN YEAR 2018 HUMAN RESOURCES For Possible Action. RECOMMENDATION: Select proposed plan and premium rate option for Health Plan of Nevada 2018 renewal for recommendation to City Council for approval. Review Health Plan of Nevada contract renewal proposal for plan year 2018 and make recommendation to City Council for approval. Proposal includes: 2018 - 5% premium rate increase for current plan HPN Solutions HMO 10 V3. 2018 - 3.16% premium rate increase for plan option HPN Solutions HMO 15. 2018 - 1.05% premium rate increase for plan option HPN Solutions HMO 15 and revised 3-Tier Prescription Drug Rider. Amber Hubber, HPN, reviewed three proposals for HPN 2018 contract renewal, as well as alternate plan options. (Motion) Chairman Tim O’Neill introduced a motion recommending approval of the 2018 renewal of 1.05 percent premium rate increase for plan option HPN Solutions HMO 15 and revised three-tier Prescription Drug Rider. The vote favoring approval was unanimous. Self-Funded Insurance Committee Page 5 of 6 Wednesday, August 16, 2017 – Minutes NB-8 2018 SELF-FUNDED HEALTH PLAN RENEWAL REPORT HUMAN RESOURCES Review 2018 Self-Funded Health Plan renewal report. Shawn Adkins, GBS, reviewed the following reports: Projected Paid Claims report, Fixed Cost Analysis, Annual Funding, Paid Claims, Current Tier Ratios, Global Budget Loomis for 2016 through 2018, Global Budget HPN for 2016 through 2018; and Contribution Analysis. Mr. Adkins noted that he will present adjustments at the September meeting. NB-9 SELF-FUNDED HEALTH PLAN PREMIUM TIERS HUMAN RESOURCES For Possible Action. RECOMMENDATION: Approve recommended premium rate tier structure for plan year 2018. Review the current premium tier structure for the Self-Funded Health Plan and make recommendation to expand the family premium rate tiers. The following shows the current tier structure of four (4) tiers and example increase in tier structure to five (5) tiers. Current four (4) Tier Structure: Employee Only Employee + Spouse Employee + Child(ren) Employee + Family (spouse + Child(ren)) Proposed five (5) Tier Structure: Employee Only Employee + Spouse Employee + Child(ren) Employee + Family (spouse + <2 child(ren) Employee + Family (spouse + >3 Children Shawn Adkins, GBS, reviewed proposed tier rates and explained current tier ratios. A discussion ensued regarding contribution rates. Mr. Adkins will research out how many retirees have more than three children. There was a consensus to defer this discussion to the annual strategic planning meeting. Self-Funded Insurance Committee Page 6 of 6 Wednesday, August 16, 2017 – Minutes VII. CHAIRMAN\MEMBER COMMENTS Mr. O’Neill confirmed that he will be attending the International Foundation of Employee Benefit Plans (IFEBP) conference October 23-25, 2017, in Las Vegas, Nevada, at the Mandalay Bay. Other members interested in attending this conference should contact staff. VIII. SET NEXT MEETING The next meeting was set for September 26, 2017, at 2:00 p.m. IX. PUBLIC COMMENT There were no public comments presented. X. ADJOURNMENT There being no further business to be discussed, Chairman O’Neill adjourned the meeting at 3:26 p.m. Respectfully submitted, ________________________ Tedie Jackson, CCS Reporter