Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE REGULAR MEETING MINUTES Wednesday, August 19, 2020 I. CALL TO ORDER Chairman Jennifer Fennema called the City of Henderson Self-Funded Insurance Committee meeting to order at 1:01 p.m., in the Mayor and Council Board Room, City Hall, 4th Floor, 240 Water Street, Henderson, Nevada 89015. 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 and emailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List and Emailing List. PRESENT: Chairman Jennifer Fennema (via WebEx) Tom Chiello (via WebEx) John Day (via WebEx) Gary Hargis (via WebEx) Jim McIntosh (via WebEx) Dan Pentkowski (via WebEx) Laura Shearin (via WebEx) ABSENT: Brett Hyde ALTERNATES: Maria Gamboa (via WebEx) Carlos McDade (via WebEx) ABSENT: Christopher Aguiar Michael Charlton Michael Dye JJ Moyes Melissa Wright STAFF: Andre Dixon, Deputy City Clerk Kristina Gilmore, Assistant City Attorney III Sally Ihmels, Assistant Director of Human Resources (via WebEx) Courtney Redsull, Employee Benefits Manager Self-Funded Insurance Committee Page 2 of 8 Wednesday, August 19, 2020 – Minutes GUESTS: Shawn Adkins, Gallagher Benefit Services (via WebEx) Bre Beaumier, Employee Benefits Specialist (via WebEx) Russell Garret, HealthSCOPE Benefits (via WebEx) Lissette Gaona, Sierra Healthcare Options (via WebEx) Amber Hubber, Health Plan of Nevada (via WebEx) Judy Morang, Sierra Healthcare Options (via WebEx) III. PUBLIC COMMENT There were public comments presented. IV. ACCEPTANCE OF AGENDA (Motion) Ms. Shearin introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. V. NEW BUSINESS NB-1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE FEBRUARY 26, 2020 HUMAN RESOURCES Self-Funded Health Insurance Committee meeting minutes of February 26, 2020. (Motion) Mr. Hargis introduced a motion to adopt the meeting minutes of February 26, 2020, as presented. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. NB-2 MONTHLY FINANCIAL REPORT HUMAN RESOURCES City of Henderson Self-Funded Health Plan monthly financial report. Maria Gamboa, Accounting Manager, referred to the backup material and reviewed the following financial reports: Self-Funded Health Insurance Fund (Fund 6051), Retiree Insurance Subsidy, and Stop Loss Restricted Cash, as of June 30, 2020. Self-Funded Insurance Committee Page 3 of 8 Wednesday, August 19, 2020 – Minutes Responding to an inquiry by Mr. Pentkowski regarding whether the Additions - Contributions figure, listed on the exhibit on page 16 of the backup material, includes City contributions or only the yearly member contributions, Ms. Gamboa stated the figure should include the contribution made by the City in July. NB-3 HEALTHSCOPE MONTHLY AND QUARTERLY CLAIMS REPORT HUMAN RESOURCES HealthSCOPE monthly and quarterly claims report. Russell Garrett, HealthSCOPE Benefits, gave a presentation via WebEx on the HealthSCOPE quarterly claims report and the Teladoc Health Utilization report. He noted these reports will look different than the monthly report normally provided to the Committee due to the pandemic postponing the normal meeting schedule; however, he stated he was able to import data from Loomis to provide comparable data from 2019 and some of HealthScope Benefits industry standards in the presentations. Following an inquiry by Shawn Adkins, Gallagher Benefit Services, regarding whether the 2020 data included Loomis figures, Mr. Garrett said Loomis figures were only included through the 2019 data at the time of this presentation. Mr. Adkins noted this presentation only includes about four months worth of data which was also heavily influenced by the effects of the pandemic; therefore, the numbers should begin to revert back to more historical patterns moving forward into next year. Responding to a question by Courtney Redsull, Employee Benefits Manager, regarding whether the Network Utilization graph on page 25 of the backup material includes both the United Healthcare Choice Plus and Sierra Healthcare Options plans, Mr. Garrett said the graph does include both plan options. Following an inquiry by Ms. Redsull regarding if the graph of where members would have gone if Teladoc were not available was based on respondent survey data or provider reporting on page 41 of the backup material, Mr. Garrett stated it was based on survey data completed by users after their consultation. Following a request by Mr. Pentkowski to have a report on Dispatch Health utilization presented to the Committee, Ms. Redsull said she will work with Mr. Garrett to provide the Committee information on Dispatch Health and similar types of services potentially available for members to utilize. Self-Funded Insurance Committee Page 4 of 8 Wednesday, August 19, 2020 – Minutes NB-4 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT HUMAN RESOURCES Sierra Healthcare Options monthly report. Judy Morang, Sierra Healthcare Options, referred to pages 48-52 of the backup material to provide an update on Sierra Healthcare Options and the status of potential additional providers being added. Ms. Morang said she could have members from her case management team join future meetings if the Committee would like more details on the report on page 48. A discussion ensued regarding the available COVID-19 testing resources Sierra Healthcare Options are currently offering to plan members. NB-5 HEALTH PLAN OF NEVADA STATUS REPORT HUMAN RESOURCES Health Plan of Nevada monthly status report. Amber Hubber, Health Plan of Nevada, provided updates regarding resources and services offered to Health Plan of Nevada members. She stated COVID-19 testing and treatment at a zero-cost share to fully insured members have been extended to October 22, 2020. NB-6 REVIEW SELF-FUNDED HEALTH PLAN REPORT OF COVID-19 RELATED CLAIMS HUMAN RESOURCES Review Self-Funded Health Plan report of COVID-19 related claims. Russell Garrett, HealthSCOPE Benefits, referred to pages 53 and 54 of the backup material to provide a report of Self-Funded Health Plan COVID-19 related claims. He stated some numbers may be under reported due to the coding and reporting of cases at the beginning of the pandemic. A discussion ensued regarding how much more expensive it is for members for emergency rooms walk-in COVID-19 testing over receiving a referral for testing and obtaining COVID-19 testing outside of an emergency room. Courtney Redsull, Employee Benefits Manager, asked the Committee to refer employees having issues regarding their COVID-19 claims being incorrectly processed by their provider to her for assistance. Self-Funded Insurance Committee Page 5 of 8 Wednesday, August 19, 2020 – Minutes NB-7 GALLAGHER BENEFIT SERVICES 2ND QUARTER 2020 REPORT HUMAN RESOURCES Gallagher Benefit Services 2nd Quarter 2020 report. Shawn Adkins, Gallagher Benefit Services, gave a presentation titled City of Henderson Claims (January 2020 through June 2020) via WebEx. He stated total claims dropped in the second quarter mainly due to the Coronavirus pandemic. In response to an inquiry by Courtney Redsull, Employee Benefits Manager, regarding an estimation of the potential spike in claims for medical procedures members have been putting off due to the pandemic, Mr. Adkins stated it is hard to predict the numbers until medical services are consistently performing most procedures again and their resulting claims are processed. NB-8 PLAN DESIGN OF SELF-FUNDED HEALTH PLAN FOR PLAN YEAR 2021 HUMAN RESOURCES Discuss intent of the Committee with regard to considering any possible changes to current plan design of the City Self-Funded Health Plan for Plan Year 2021. Courtney Redsull, Employee Benefits Manager, stated the purpose of this agenda item is to receive feedback from the Committee regarding whether they believe the current plan design should stay as is or consider potential changes for the 2021 plan year. After a discussion among the Committee, Ms. Redsull stated she would provide follow-up information for the Committee to consider as potential plan design adjustments for the following recommendations:  Total out-of-pocket maximum and deductibles for the year  Flu shot reporting and the possibility of moving it to the pharmacy plan  Dispatch Health and similar service co-payments NB-9 PLAN YEAR 2021 SELF-FUNDED HEALTH PLAN RENEWAL REPORT AND FUNDING RATES HUMAN RESOURCES Review Plan Year 2021 Self-Funded Health Plan renewal report that includes Conservative, Optimistic, and Best Estimate projected funding rate requirements for Plan Year 2021, and direct staff to implement the funding rate model selected by the Committee. Self-Funded Insurance Committee Page 6 of 8 Wednesday, August 19, 2020 – Minutes After a brief discussion, it was a consensus of the Committee to continue this agenda item until after the Committee discusses potential plan design changes at next month’s meeting. (Motion) Mr. Pentkowski introduced a motion to continue this item to the September Self-Funded Insurance Committee meeting. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. NB-10 VISION SERVICES PLAN ADMINISTRATIVE FEE RENEWAL PROPOSAL FOR PLAN YEARS 2021 - 2024 HUMAN RESOURCES Review Vision Services Plan (VSP) administrative fee contract renewal proposal for Plan Years 2021 - 2024 and make recommendation to the Human Resources Director for approval. Proposal includes an option to keep the current plan design at the same rate of $1.67 per employee per month, estimated total annual cost of $30,280.44, or an option to increase frame allowance, and elective contact lens allowance and decrease exam and contact lens allowances with non-network providers at a renewal rate of $1.45 per employee per month, estimated total annual cost of $26,291.40. Courtney Redsull, Employee Benefits Manager, referred to page 80 of the backup material and presented a summary of the VSP administrative fee contract renewal proposal for plan years 2021 - 2024. She said she was happy with the offer and noted the plan design essentially remains the same. A plan design change would include a few changes to the Lens Enchantments, Frame Allowance, and Elective Contact Lens Allowance. Shawn Adkins, Gallagher Benefit Services, concurred with Ms. Redsull’s assessments of the plan design and would recommend keeping the plan as is. (Motion) Chairman Fennema introduced a motion to direct staff to present and recommend approval of the Vision Services Plan contract renewal proposal for plan years 2021 - 2024 to the Human Resources Director at the current plan design and administrative fee structure. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. Self-Funded Insurance Committee Page 7 of 8 Wednesday, August 19, 2020 – Minutes NB-11 DELTA DENTAL ADMINISTRATIVE FEE RENEWAL PROPOSAL FOR PLAN YEARS 2021 - 2022 HUMAN RESOURCES Review Delta Dental administrative fee contract renewal proposal for Plan Years 2021 - 2022 and make a recommendation to the Human Resources Director for approval. Proposal includes a six percent premium rate increase over current at an estimated additional annual cost of $2,261.76, and a total estimated annual cost of $39,792.84. Courtney Redsull, Employee Benefits Manager, referred to pages 81 - 83 of the backup material and presented a summary of the Delta Dental administrative fee contract renewal proposal for plan years 2021 - 2022. She noted the plan design remains the same; however, the proposal includes a six percent premium rate increase over current costs. Shawn Adkins, Gallagher Benefit Services, stated they worked at lowering the plan costs; however, even though the proposal is more expensive than current costs, he did not have any concerns with the plan design. (Motion) Chairman Fennema introduced a motion to direct staff to present and recommend approval of the Delta Dental contract renewal proposal for plan years 2021 - 2022 to the Human Resources Director. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. NB-12 HEALTH PLAN OF NEVADA RENEWAL PROPOSAL FOR PLAN YEAR 2021 HUMAN RESOURCES Review Health Plan of Nevada (HPN) contract renewal proposal for Plan Year 2021 and make a recommendation to City Council for approval. Proposal includes no increase and no plan design changes to the current HPN Solutions HMO 15 plan. Estimated annual premium on this renewal is $1,073,703.24. Courtney Redsull, Employee Benefits Manager, stated she was happy to announce that HPN offered a one-year contract renewal for plan year 2021 at a rate pass. Shawn Adkins, Gallagher Benefit Services, concurred with Ms. Redsull’s assessment and thanked Amber Hubber and her HPN team for working with the City and offering the renewal at a rate pass. Self-Funded Insurance Committee Page 8 of 8 Wednesday, August 19, 2020 – Minutes (Motion) Chairman Fennema introduced a motion to direct staff to present and recommend approval of the Health Plan of Nevada contract renewal proposal for plan year 2021 to the City Council. The vote favoring approval was unanimous. Chairman Fennema declared the motion carried. VI. CHAIRMAN\MEMBER COMMENTS There were no chairman\member comments presented. VII. SET NEXT MEETING The next meeting was set for Wednesday, September 16, 2020. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to conduct, Chairman Fennema adjourned the meeting at 2:57 p.m. Respectfully submitted, Andre Dixon, Deputy City Clerk