Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING MINUTES Wednesday, October 24, 2018 I. CALL TO ORDER Chairman Jim McIntosh called the City of Henderson Self-Funded Insurance Committee Regular meeting to order at 9:02 a.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 Erich Ammon John Day Carlos McDade (for Jennifer Fennema) Ken Kerby Tim O’Neill (arrived at 9:05 a.m.) Dan Pentkowski ABSENT: Jennifer Fennema Laura Shearin ALTERNATES: Mike Charlton Tom Chiello Jared Spangler Jason Spangler STAFF: Kristina Gilmore, Assistant City Attorney III Sally Ihmels, Asst. Director of Human Resources Tedie Jackson, Deputy City Clerk Alysa Neilson, Employee Benefits Manager Maria Gamboa, Finance GUESTS: Shawn Adkins, Gallagher Benefit Services Ed Winogracki, The Loomis Company (via teleconference) Self-Funded Insurance Committee Page 2 of 9 Wednesday, October 24, 2018 – Minutes III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Mr. Kerby introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. V. UNFINISHED BUSINESS UB-1 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 for retiree and COBRA participants. Note: UB-1 was discussed following NB-9. Alysa Neilson, Employee Benefits Manager, presented a summary of this item, and said staff recommends leaving the unblended rate structure for the retirees, and blending the rate structure for COBRA participants. Shawn Adkins, Gallagher Benefit Services, provided a background history and explanation of the actuarial method the rates are blended. (Motion) Mr. O’Neill introduced a motion to approve the blended rate for COBRA participants, and unblended rate for retirees for plan year 2019, to be effective January 1, 2019. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. VI. NEW BUSINESS NB-2 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE SEPTEMBER 19, 2018 HUMAN RESOURCES Self-funded health insurance committee meeting minutes of September 19, 2018. Self-Funded Insurance Committee Page 3 of 9 Wednesday, October 24, 2018 – Minutes (Motion) Mr. Pentkowski introduced a motion to adopt the minutes of September 19, 2018, as presented. The vote favoring approval was unanimous. Chairman McIntosh 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, provided an update on the Self-Funded Health Insurance Fund, the Retiree Insurance Subsidy, and the Stop Loss Restricted Cash, as of September 30, 2018. NB-4 LOOMIS MONTHLY CLAIMS REPORT HUMAN RESOURCES Loomis monthly claims report. Via teleconference, Ed Winogracki, The Loomis Company, reviewed the Loomis Monthly Paid Claims Analysis Report. NB-5 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Alysa Neilson, Employee Benefits Manager, provided an update on the Sierra Healthcare Options Quarterly Provider Report. She reviewed handouts entitled “SHO discharged Cases-Bed Day Report” and “2018 Monthly Average Length of Stay.” NB-6 HEALTH PLAN OF NEVADA STATUS REPORT HUMAN RESOURCES Health Plan of Nevada status report. No report was provided. Self-Funded Insurance Committee Page 4 of 9 Wednesday, October 24, 2018 – Minutes NB-7 GALLAGHER BENEFIT SERVICES STATUS REPORT HUMAN RESOURCES Gallagher Benefit Services status report. Shawn Adkins, Gallagher Benefit Services (GBS), reported that the Trump administration is proposing changes to Health Reimbursement Account (HRA) rules, and allow groups to set up an HRA to pay for health insurance on the Exchange. There will be taxation issues, transferability issues, and other conflicts that may need to be addressed. Mr. Adkins will provide updates as more information comes forth. NB-8 REVISED 2019 SELF-FUNDED HEALTH PLAN RENEWAL REPORT HUMAN RESOURCES Review revision to the 2019 Self-Funded Health Plan renewal report. Shawn Adkins, Gallagher Benefit Services, reviewed the Renewal Report Package for Plan Year 2019. NB-9 STOP LOSS COVERAGE FOR PLAN YEAR 2019 HUMAN RESOURCES Review the stop loss insurance renewal options for plan year 2019. Renewal options also detailed in the attached renewal proposal and renewal analysis. Select one option for recommendation to City Council for approval. Renewal at current deductible Individual Deductible: $525,000 Single Rate: $6.00 per employee per month Family Rate: $20.80 per employee per month Estimated total annual premium: $275,899 Increase of 10.2% over current year premium Option 1 Individual Deductible: $550,000 Single Rate: $4.70 per employee per month Family Rate: $22.38 per employee per month Estimated total annual premium: $261,270 Increase of 4.4% over current year premium Self-Funded Insurance Committee Page 5 of 9 Wednesday, October 24, 2018 – Minutes Option 2 Individual Deductible: $575,000 Single Rate: $4.42 per employee per month Family Rate: $21.36 per employee per month Estimated total annual premium: $249,058 Decrease of -0.5% over current year premium Shawn Adkins, GBS, reviewed options for stop loss coverage. A brief discussion ensued regarding possibly continuing this item to the next meeting because current Union negotiations may impact this decision. Ms. Neilson explained that if this item is continued, the Stop Loss carrier will need to be provided with another month of information, which could increase the proposed rates. She noted that the savings difference between the renewal and two proposed options is not a big difference. (Motion) Mr. O’Neill introduced a motion to approve renewing the Stop Loss coverage for Plan Year 2019 at the current deductible of $525,000, to be effective January 1, 2019. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. NB-10 SELF-FUNDED HEALTH INSURANCE PLAN RETIREE AND COBRA PREMIUM RATES FOR PLAN YEAR 2019 HUMAN RESOURCES Select retiree and COBRA actuarial determined funding rate option for plan year 2019 for the Self-Funded PPO and Consumer Driven Health Plans. Rate option selection noted below is dependent on voting outcome for item UB-1 in this agenda. Option 1: 2019 Retiree Rates: Self-Funded Health Plan (PPO) or Consumer Driven Health Plan (CDHP) Unblended Dental - SHO Dental Retiree Only: $580.90 Retiree plus Spouse: $1,187.39 Retiree plus Child(ren): $1,042.99 Retiree plus Spouse + Child(ren) $1,649.48 Self-Funded Insurance Committee Page 6 of 9 Wednesday, October 24, 2018 – Minutes Self-Funded Health (PPO) or Consumer Driven Health Plan (CDHP) Unblended Dental - Delta Dental Retiree Only: $602.81 Retiree plus Spouse: $1,232.30 Retiree plus Child(ren): $1,082.42 Retiree plus Spouse + Child(ren): $1,711.93 2019 COBRA* Rates: Self-Funded Health Plan (PPO) or Consumer Driven Health Plan (CDHP) Unblended Dental - SHO Dental Participant Only: $593.54 Participant plus Spouse: $1,212.16 Participant plus Child(ren): $1,064.87 Participant plus Spouse + Child(ren): $1,683.49 Self-Funded Health (PPO) or Consumer Driven Health Plan (CDHP) Unblended Dental - Delta Dental Participant Only: $615.89 Participant plus Spouse: $1,257.97 Participant plus Child(ren): $1,105.09 Participant plus Spouse + Child(ren): $1,747.19 Option 2: 2019 Retiree Rates Self-Funded Health Plan (PPO) or Consumer Driven Health Plan (CDHP) Blended Dental Retiree Only: $589.33 Retiree plus Spouse: $1,204.65 Retiree plus Child(ren): $1,058.14 Retiree plus Spouse + Child(ren): $1,673.49 2019 COBRA* Rates Self-Funded Health Plan (PPO) or Consumer Driven Health Plan (CDHP) Blended Dental Participant Only: $602.14 Participant plus Spouse: $1,229.76 Participant plus Child(ren): $1,080.32 Participant plus Spouse + Child(ren): $1,707.98 *COBRA charges include 2% administrative fee Alysa Neilson, Employee Benefits Manager, presented a summary of this item, and reviewed options. Motion to accept the retiree rate option 1 with a zero percent increase, and a COBRA participants rate for option 2. Self-Funded Insurance Committee Page 7 of 9 Wednesday, October 24, 2018 – Minutes (Motion) Mr. Kerby introduced a motion to approve Option 1 for retiree rates, with a zero-percent increase; and approve Option 2 for COBRA participants, to be effective January 1, 2019. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. NB-11 HEALTH PLAN OF NEVADA RETIREE AND COBRA PREMIUM RATES FOR PLAN YEAR 2019 HUMAN RESOURCES For Possible Action. RECOMMENDATION: Select the 2019 actuarial determined funding rate option for Health Plan of Nevada for retirees and COBRA participants. Select retiree and COBRA actuarial determined funding rate option for plan year 2019 for the Health Plan of Nevada (HMO) Plan. Rate option selection noted below is dependent on voting outcome for item UB-1 in this agenda. Option 1: 2019 Retiree Rates Health Plan of Nevada Unblended Dental - SHO Dental Retiree Only: $493.71 Retiree plus Spouse: $1,007.93 Retiree plus Child(ren): $884.81 Retiree plus Spouse + Child(ren): $1,399.73 Health Plan of Nevada Unblended Dental - Delta Dental Retiree Only: $514.92 Retiree plus Spouse: $1,052.14 Retiree plus Child(ren): $924.94 Retiree plus Spouse + Child(ren): $1,461.48 2019 COBRA* Rates Health Plan of Nevada Unblended Dental - SHO Dental Participant Only: $503.89 Participant plus Spouse: $1,028.39 Participant plus Child(ren): $903.53 Participant plus Spouse + Child(ren) $1,428.03 Self-Funded Insurance Committee Page 8 of 9 Wednesday, October 24, 2018 – Minutes Health Plan of Nevada Unblended Dental - Delta Dental Participant Only: $526.24 Participant plus Spouse: $1,074.20 Participant plus Child(ren): $943.74 Participant plus Spouse + Child(ren): $1,491.73 Option 2: 2019 Retiree Rates Health Plan of Nevada Blended Dental Retiree Only: $501.44 Retiree plus Spouse: $1,024.49 Retiree plus Child(ren): $899.96 Retiree plus Spouse + Child(ren): $1,423.04 2019 COBRA* Rates Health Plan of Nevada Blended Dental Participant Only: $512.49 Participant plus Spouse: $1,046.00 Participant plus Child(ren): $918.98 Participant plus Spouse + Child(ren): $1,452.52 *COBRA charges include 2% administrative fee Alysa Neilson, Employee Benefits Manager, presented a summary of this item, and noted that staff recommends approving the unblended rates for the HPN retirees, and the blended rate for COBRA participants. (Motion) Mr. Kerby introduced a motion to approve Option 1, HPN retirees, unblended rates for retirees; and approve Option 2, the blended rates for COBRA participants, to be effective January 1, 2019. The vote favoring approval was unanimous. Chairman McIntosh declared the motion carried. VII. CHAIRMAN\MEMBER COMMENTS Mr. Kerby reported that the International Foundation of Employee Benefits Conference in New Orleans, Louisiana did not discuss topics on new information due to national issues. He believes the City’s insurance plan is in good shape compared to other municipalities. Self-Funded Insurance Committee Page 9 of 9 Wednesday, October 24, 2018 – Minutes Ms. Neilson reported that the Health Services Coalition will be on the November 6, 2018, City Council agenda for approval, and she anticipates sending out letters to members the next day. She also noted that all plan participants should receive new ID cards in the mail the end of December. The open enrollment process will begin in November. Ms. Neilson reviewed information pertaining to family health insurance coverage in the event of a member’s death. Coverage for a death occurring in the line of duty for police and fire personnel is outlined in NRS 287.021. VIII. SET NEXT MEETING The November meeting will be cancelled. The next meeting will be determined at a later date. IX. PUBLIC COMMENT There were no public comments presented. X. ADJOURNMENT There being no further business to be discussed, the meeting was adjourned at 10:34 a.m. Respectfully submitted, ________________________ Tedie Jackson, Deputy City Clerk