Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING MINUTES Wednesday, September 19, 2018 I. CALL TO ORDER Chairman Jim McIntosh called the City of Henderson Self-Funded Insurance Committee Regular meeting to order at 2:00 p.m., in the Mayor and Council Board Room, Henderson 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 Jim McIntosh John Day Jennifer Fennema Tim O’Neill Dan Pentkowski Laura Shearin Jared Spangler (for Ken Kerby) Jason Spangler (for Erich Ammon) ABSENT: Ken Kerby (excused) Erich Ammon (excused) ALTERNATES: Mike Charlton Tom Chiello STAFF: Brian Reeve, Assistant City Attorney III Sally Ihmels, Asst. Director of Human Resources Tedie Jackson, Deputy City Clerk Alysa Neilson, Employee Benefits Manager Joe Grippaldi, Senior Accountant (for Maria Gamboa) GUESTS: Shawn Adkins, Gallagher Benefit Services Amber Hubber, Health Plan of Nevada Pam Levy, Sierra Healthcare Options Shauna Reed, Sierra Healthcare Options Maria Sherakas, The Loomis Company Lizet Vega, City Clerk’s Office Self-Funded Insurance Committee Page 2 of 6 Wednesday, September 19, 2018 – Minutes Everyone present introduced themselves. Pam Levy announced that she is retiring, and introduced Shauna Reed as her replacement from Sierra Healthcare Options. III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Mr. O’Neill introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. V. NEW BUSINESS NB-1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE AUGUST 15, 2018 HUMAN RESOURCES Self-Funded Health Insurance Committee meeting minutes of August 15, 2018. (Motion) Mr. O’Neill introduced a motion to adopt the minutes of August 15, 2018, as presented. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. NB-2 MONTHLY FINANCIAL REPORT HUMAN RESOURCES City of Henderson Self-Funded Health Plan monthly financial report. Joe Grippaldi, Senior Accountant, provided an update on the Self-Funded Health Insurance Fund, the Retiree Insurance Subsidy, and the Stop Loss Restricted Cash, as of August 31, 2018. NB-3 LOOMIS MONTHLY CLAIMS REPORT HUMAN RESOURCES Loomis monthly claims report. Maria Sherakas, The Loomis Company, reviewed the Loomis Monthly Paid Claims Analysis Report. Self-Funded Insurance Committee Page 3 of 6 Wednesday, September 19, 2018 – Minutes NB-4 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Pam Levy, Sierra Healthcare Options, provided an update on the Sierra Healthcare Options monthly report. She distributed and reviewed handouts entitled “SHO discharged Cases-Bed Day Report” and “2018 Monthly Average Length of Stay.” NB-5 HEALTH PLAN OF NEVADA STATUS REPORT HUMAN RESOURCES Health Plan of Nevada Status report. Amber Hubber, HPN, reported on flu shot clinics provided at Walgreens and CVS on Saturday, September 22 and 29, 2018. NB-6 GALLAGHER BENEFIT SERVICES STATUS REPORT HUMAN RESOURCES Gallagher Benefit Services status report. Shawn Adkins, Gallagher Benefit Services (GBS), reported that the flexible spending account information was not released; however, the IRS did release HSA contribution and deductible limits for plan year 2019. He noted that industry expects the mergers between Aetna and CVS and Cigna and Express Scripts to go through. NB-7 2019 SELF-FUNDED HEALTH PLAN RENEWAL REPORT HUMAN RESOURCES Review 2019 Self-Funded Health Plan renewal report. Shawn Adkins, GBS, gave a lengthy review of the Renewal Report Package for Plan Year January 1, 2019, through December 31, 2019. He reviewed the SHO and Delta dental funding rate and recommended to move from the current unblended funding rate to a blended rate. It was noted that the dental funding rates would be discussed further under item NB-9. Self-Funded Insurance Committee Page 4 of 6 Wednesday, September 19, 2018 – Minutes NB-8 HEALTH PLAN OF NEVADA RENEWAL PROPOSAL FOR PLAN YEAR 2019 HUMAN RESOURCES Review Health Plan of Nevada contract renewal proposal for plan year 2019 and make recommendation to City Council for approval. Proposal includes: 2019 - 9% premium rate increase for current plan HPN Solutions HMO 15 2019 - 5.44% premium rate increase for plan option HMO 10-1D 2019 - 6.55% premium rate increase for plan option HMO 15-1D Amber Hubber, HPN, distributed and reviewed the City of Henderson 2019 Renewal Rates, and noted they were able to reduce the rate to an overall nine-percent increase. She mentioned that due to high-cost claimants, the proposed increase is higher than previous years. Ms. Hubber also reviewed alternate options. Ms. Neilson explained that the renewal rate ties into the report from GBS, and staff is not recommending any plan changes for next year. Mr. Pentkowski questioned whether action on this item should be deferred until the next meeting until the overall funding from union negotiations has been determined. Ms. Neilson replied that these are separate issues, and will not make a significant enough impact pertaining to funding rates to the plan. (Motion) Mr. O’Neill introduced a motion recommending approval of a nine-percent premium rate increase for current plan HPN Solutions HMO 15, and to forward this recommendation to the City Council for final approval. The roll call vote favoring approval was: Those voting Aye: Day, Fennema, McIntosh, O’Neill, Pentkowski, and Shearin. Those voting Nay: Jared Spangler and Jason Spangler. Those Absent: Ammon and Kerby. Those abstaining: None. Chairman McIntosh declared the motion carried. Self-Funded Insurance Committee Page 5 of 6 Wednesday, September 19, 2018 – Minutes NB-9 DENTAL PLAN RATE DEVELOPMENT FOR RETIREES AND COBRA PARTICIPANTS HUMAN RESOURCES Review current dental rate structure for retiree and COBRA participants and determine the actuarial method to establish dental rates for plan year 2019 as referred to on page 6 of the Health Plan Renewal report. Alysa Neilson, Employee Benefits Manager, presented a summary of this item, and reviewed three options outlined in the backup material. Mr. Adkins stated that GBS strongly believes the COBRA participants should be assessed the blended rates, and recommended Option 3. A discussion ensued regarding waiting to vote on this item until after staff reviews dental rate development for retiree and COBRA participants with the City Attorney’s Office. (Motion) Mr. Pentkowski introduced a motion to table this item to the next meeting. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. NB-10 HEALTH SERVICES COALITION HUMAN RESOURCES The Health Services Coalition (HSC) has approved the City Self-Funded Health Plan's application to join the coalition effective January 1, 2019. The HSC requires an access fee of $1.25 per employee per month. Approve membership to join the coalition effective January 1, 2019, subject to City Council approval. Alysa Neilson, Employee Benefits Manager, reviewed the City of Henderson Proposal to Access the Health Services Coalition, and noted that staff believes joining the Coalition would be a positive move. If this is approved, staff will communicate to all members during open enrollment, and every member will receive a new ID card. It was also noted that the City will not renew their contract with Home Town Health if we join the Coalition. She explained that concerns include past issues during contract renewals with Dignity Health facilities, which include St. Rose hospitals. The HCA hospital contract is due in February, and the rest of the hospitals in the valley are contracted through 2019. Mr. Pentkowski commented that all of his concerns have been addressed, and he supports joining the Coalition. Self-Funded Insurance Committee Page 6 of 6 Wednesday, September 19, 2018 – Minutes (Motion) Mr. Pentkowski introduced a motion to recommend to City Council to join the Health Services Coalition with an access fee of $1.25 per employee per month, effective January 1, 2019. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. VI. CHAIRMAN\MEMBER COMMENTS There were no Chairman or member comments presented. VII. SET NEXT MEETING The next meeting was set for October 24, 2018, from 9:00 a.m. to 11:00 a.m. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to be discussed, the meeting was adjourned at 3:23 p.m. Respectfully submitted, ________________________ Tedie Jackson, Deputy City Clerk