Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING MINUTES Wednesday, August 21, 2019 I. CALL TO ORDER Chairman Dan Pentkowski called the City of Henderson Self-Funded Insurance Committee Regular meeting to order at 2:00 p.m., in the Legacy Training Room, Henderson City Hall, 240 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL Courtney Redsull, 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 Dan Pentkowski Tom Chiello John Day Jim Dunlap Jennifer Fennema (arrived at 2:09 p.m.) Gary Hargis Jim McIntosh (left at 3:54 p.m.) Laura Shearin (arrived at 2:04 p.m.) ABSENT: None ALTERNATES: Mike Charlton, IAFF Maria Gamboa, Accounting Manager Carlos McDade, Chief Labor Negotiator Christopher Aguiar, HPSA Melissa Wright, City Auditor JJ Moyes, Business Manager STAFF: Kristina Gilmore, Assistant City Attorney III Sally Ihmels, Asst. Director of Human Resources April Parra, Admin. Deputy City Clerk Courtney Redsull, Employee Benefits Manager Self-Funded Insurance Committee Page 2 of 7 Wednesday, August 21, 2019 – Minutes GUESTS: Shawn Adkins, Gallagher Benefit Services Serena Farrell, Behavioral Healthcare Options Lissette Gaona, Sierra Healthcare Options Amber Hubber, Health Plan of Nevada Judy Morang Sierra Healthcare Options Amy Wong, HR Business Partner Michael Denning, Henderson Police Department Ryan Turner, Henderson Fire Department Tom Cook, Behavioral Healthcare Options Stacy Hakes, Behavioral Healthcare Options III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (Motion) Mr. Dunlap introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. V. NEW BUSINESS NB-1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE JULY 17, 2019 HUMAN RESOURCES Self-funded health insurance committee meeting minutes of July 17, 2019. (Motion) Mr. Dunlap introduced a motion to adopt the Self-Funded Health Insurance Committee meeting minutes of July 17, 2019, as presented. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. NB-2 MONTHLY FINANCIAL REPORT HUMAN RESOURCES City of Henderson Self-Funded Health Plan monthly financial report. Self-Funded Insurance Committee Page 3 of 7 Wednesday, August 21, 2019 – Minutes Maria Gamboa, Accounting Manager, reviewed the financial reports and noted there was a decrease in the number of claims over last year. She briefly reviewed the Retiree Insurance Subsidy Report and the Stop Loss Restricted Cash Report. NB-3 LOOMIS MONTHLY CLAIMS REPORT HUMAN RESOURCES Loomis monthly claims report. Courtney Redsull, Employee Benefits Manager, reviewed the Loomis monthly claims report, and noted the large increase is primarily due to stop-loss claims. It was noted that there will be a reimbursement for these claims. Ms. Redsull also reviewed the Paid Claims Analysis and the Large Claim Summary reports. NB-4 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Judy Morang, Sierra Healthcare Options, gave a brief report. Responding to a question by Ms. Redsull, a brief discussion ensued regarding ambulance service options. NB-5 HEALTH PLAN OF NEVADA STATUS REPORT HUMAN RESOURCES Health Plan of Nevada monthly status report. Amber Hubber, Health Plan of Nevada, gave a brief status report. She informed the Committee members that Med Express Urgent Care closed their doors in mid-July and are no longer doing business in Nevada. NB-6 GALLAGHER BENEFIT SERVICES MONTHLY REPORT HUMAN RESOURCES Gallagher Benefit Services monthly report. Shawn Adkins, Gallagher Benefit Services, gave the monthly report and responded to a question from last month, stating there have been four groups utilizing dispatch health. He also noted that Cigna recently put their life insurance division up for sale. Self-Funded Insurance Committee Page 4 of 7 Wednesday, August 21, 2019 – Minutes NB-7 BEHAVIORAL HEALTH AND CRITICAL RESPONSE SERVICES HUMAN RESOURCES Presentation from Behavioral Healthcare Options (BHO) on member access to behavioral health and critical incident response services. Serena Farrell, BHO, gave an overview of the services that are provided by Behavioral Healthcare Options, key program features, and the utilization by the members. She said the City of Henderson has approximately 13 percent utilization, which is over double the average. Responding to a question by Mr. Dunlap regarding response times, Ms. Farrell said times are approximately two hours. Responding to a question by Mr. Dunlap regarding the online first responder mental health awareness training, Stacy Hakes, BHO, said they are still developing the online training; however, on-site training is available. Chairman Pentkowski asked if there are services available for debriefing for a first responder after a critical incident. Mr. Cook said this has not typically occurred, and this service has fallen to the peer team. Chairman Pentkowski said he would like to refresh the collaboration to remind HFD staff what services are available. A discussion ensued regarding how a patient who is in crisis can access services and how they get through the intake process and receive assistance. The discussion included how situations are evaluated to determine the level of care necessary. NB-8 PHARMACY BENEFIT ADVANCED UTILIZATION MANAGEMENT HUMAN RESOURCES Discuss and consider directing staff to implement one of the pharmacy benefit advanced utilization management programs offered by Express Scripts Incorporated. Options include the Advantage Package plus Adjunctive Specialty Prior Authorizations and the Limited Package plus Adjunctive Specialty Prior Authorizations. Each package contains a different combination of the following components: Additional Prior Authorization Requirements Step Therapy Requirements Drug Quantity Management Limits Note: This item was heard immediately following NB-11. Self-Funded Insurance Committee Page 5 of 7 Wednesday, August 21, 2019 – Minutes Shawn Adkins, GBS, gave a presentation on the pharmacy benefit advanced utilization management programs offered by Express Scripts Incorporated. He detailed the various options including the Advantage Package plus Adjunctive Specialty Prior Authorizations and the Limited Package plus Adjunctive Specialty Prior Authorizations. It was the consensus of the Committee to take no action on this item and to leave the plan as it currently is. NB-9 HEALTH PLAN OF NEVADA RENEWAL PROPOSAL FOR PLAN YEAR 2020 HUMAN RESOURCES Review Health Plan of Nevada (HPN) contract renewal proposal for Plan Year 2020 and make recommendation to City Council for approval. Proposal includes a 3% premium rate increase for current plan HPN Solutions HMO 15 at an estimated additional annual cost of $30,625.08. Amber Hubber, HPN, reviewed the HPN contract renewal proposal for Plan Year 2020. (Motion) Ms. Fennema introduced a motion to direct staff to present and recommend approval of Health Plan of Nevada contract renewal proposal Plan Year 2020 to City Council. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. NB-10 FUNDING FOR PLAN YEAR 2020 SELF-FUNDED HEALTH PLAN DESIGN CHANGES HUMAN RESOURCES Review 2020 Self-Funded Health Plan renewal report that includes Conservative, Optimistic, and Best Estimate projected funding rate requirements for Plan Year 2020, including approximately $593,484.00 in plan design changes previously approved by the Self-Funded Health Insurance committee on July 17, 2019, and direct staff to fund the plan design changes using plan reserve funds, or funding rate increase. This item was heard immediately following NB-7. Shawn Adkins, GBS, reviewed the three projected funding rate requirements which included Conservative, Optimistic, and Best Estimate projections. He also reviewed the plan adjustments included in the projections, and the Fixed Cost Analysis. Mr. Adkins reviewed the Development of Needed Funding Report in detail and noted staff recommends utilizing reserve funds to fund plan design changes. Self-Funded Insurance Committee Page 6 of 7 Wednesday, August 21, 2019 – Minutes Mr. Adkins reviewed the Development of Projected Paid Claims Dental and Vision report. (Motion) Ms. Shearin introduced a motion to direct staff to utilize reserves of approximately $593,484.00 to fund plan design changes approved by the Self-Funded Health Insurance Committee for Plan Year 2020. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. NB-11 PLAN YEAR 2020 SELF-FUNDED HEALTH PLAN RENEWAL REPORT AND FUNDING RATES HUMAN RESOURCES Review Plan Year 2020 Self-Funded Health Plan renewal report that includes Conservative, Optimistic, and Best Estimate projected funding rate requirements for Plan Year 2020, including plan design changes previously approved by the committee, and direct staff to implement the funding rate model selected by the committee. Shawn Adkins, GBS, reviewed the Conservative, Optimistic, and Best Estimate funding model. He noted that staff recommends Best Estimate Option B. (Motion) Ms. Fennema introduced a motion to direct staff to establish funding rates for Plan Year 2020 according to the Best Estimate Option B with a rate pass. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. NB-12 DENTAL PLAN RATE DEVELOPMENT FOR RETIREE PARTICIPANTS FOR PLAN YEAR 2020 HUMAN RESOURCES Review current dental rate structure for Retiree participants and determine the actuarial method to establish dental rates for Plan Year 2020 for retiree participants. Note: This item was heard immediately following NB-12. Shawn Adkins, GBS, gave a presentation on the current dental rate structure for retirees, which included three options with blended and unblended rates. A discussion ensued regarding the benefits and drawbacks of the various options. Self-Funded Insurance Committee Page 7 of 7 Wednesday, August 21, 2019 – Minutes (Motion) Mr. Chiello introduced a motion to approve Option 1, on page 77, for the retiree dental rate for Plan Year 2020. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. VII. CHAIRMAN\MEMBER COMMENTS Chairman Pentkowski commented that it is very nice to be able to see a flat rate increase and an enhanced benefit for the members. VIII. SET NEXT MEETING The next meeting was set for Wednesday, September 18, 2019, at 2:00 p.m. IX. PUBLIC COMMENT There were no public comments presented. X. ADJOURNMENT There being no further business to be discussed, the meeting was adjourned at 3:58 p.m. Respectfully submitted, ________________________ April Parra, Admin. Deputy City Clerk