Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE MEETING MINUTES Wednesday, September 15, 2021 I. CALL TO ORDER Chairman Daniel Pentkowski called the City of Henderson Self-Funded Insurance Committee meeting to order at 1:05 p.m., in the Tuscany Conference Room, City Hall 3rd 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. PRESENT: Chairman Daniel Pentkowski John Day Jim McIntosh Laura Shearin Brooke Stream ABSENT: Thomas Chiello (Excused) Gary Hargis (Excused) Bret Hyde (Excused) ALTERNATES: Christopher Aguiar for Thomas Chiello Michael Charlton ABSENT: Michael Dye (Excused) Maria Gamboa (Excused) Carlos McDade (Excused) JJ Moyes (Excused) Shawn Thibeault (Excused) STAFF: Courtney Redsull, Employee Benefits Manager Kristina Gilmore, Assistant City Attorney III Janet Sandifer, Deputy City Clerk GUESTS: Shawn Adkins, Gallagher Benefit Services Russell Garrett, HealthSCOPE Benefits Rebecca Gillis, Senior Accountant Amber Hubber, Health Plan of Nevada (via Teleconference) Sarah Stephenson, Sierra Healthcare Options III. PUBLIC COMMENT There were no public comments presented. Self-Funded Insurance Committee Meeting Page 2 of 7 Wednesday, September 15, 2021 – Minutes IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Mr. Aguiar introduced a motion to accept the agenda, as presented. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. V. NEW BUSINESS 1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE AUGUST 18, 2021 FINANCE DEPARTMENT City of Henderson Self-Funded Health Insurance Committee Meeting minutes of August 18, 2021. (Motion) Mr. Day introduced a motion to adopt the meeting minutes of August 18, 2021, as presented. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. 2 MONTHLY FINANCIAL REPORT FINANCE DEPARTMENT City of Henderson Self-Funded Health Plan monthly financial report for July 2021. Rebecca Gillis, Senior Accountant, reviewed the following financial reports: Self-Funded Health Insurance Fund (Fund 6051), Retiree Insurance Subsidy, and Stop Loss Restricted Cash, as of July 31, 2021. Self-Funded Insurance Committee Meeting Page 3 of 7 Wednesday, September 15, 2021 – Minutes 3 HEALTHSCOPE MONTHLY REPORT FINANCE DEPARTMENT HealthSCOPE monthly report for July 2021. Russell Garrett, HealthSCOPE Benefits, reviewed the following monthly reports: Utilization by Claim by Month; Medical Utilization by Claim Category by Month, Enrollment by Tier-Medical, Medical Enrollment by Demographic, Dental Enrollment by Demographic, Demographics Summary-Medical, and Customer Care Call Statistics for July 2021. Responding to an inquiry from Courtney Redsull, Employee Benefits Manager, regarding whether a category for COVID-19 treatment claims could be added to the monthly report, Mr. Garrett said he will submit a separate detailed report, which will show specific COVID-19-related treatment costs. Shawn Adkins, Gallagher Benefit Services, stated due to utilization, dental funding rates should increase substantially next year. 4 SIERRA HEALTHCARE OPTIONS MONTHLY REPORT FINANCE DEPARTMENT Sierra Healthcare Options monthly report. Sarah Stephenson, Sierra Healthcare Options (SHO) reviewed the following monthly reports: COC Utilization, Executive Summary Report – per 1,000, Average Length of Stay by Facilities, and SHO Bed Day Trends as of July 31, 2021. Ms. Stephenson stated the SHO Bed Day Trends report does not include BHO data and said the average length of stay was 5.15 days. Self-Funded Insurance Committee Meeting Page 4 of 7 Wednesday, September 15, 2021 – Minutes 5 HEALTH MAINTENANCE ORGANIZATION (HMO) PLAN OPTIONS FINANCE DEPARTMENT Discuss the Health Plan of Nevada (HPN) renewal offer for Plan Year 2022, and consider the renewal offer and other potential options for the Health Maintenance Organization (HMO) plan, and direct staff to implement the Committee’s selection of one of the following options:  Implement the Health Plan of Nevada Renewal offer for Plan Year 2022 at an increase of 12 percent over Plan Year 2021 rates, and an estimated annual cost of $1,122,210.84. This would be an estimated increase of $120,237.00 over Plan Year 2021 premiums.  Implement an Exclusive Provider Organization (EPO) plan in place of the HMO plan with health plan funding rates remaining the same for Plan Year 2022, subject to confirmation from HealthSCOPE Benefits that this implementation would be possible by January 1, 2022.  Eliminate the HMO plan option and require all plan participants to enroll in either the Preferred Provider Organization (PPO) plan or the Consumer Driven Health Plan (CDHP) for Plan Year 2022, effective January 1, 2022, with funding rates remaining the same for Plan Year 2022. Courtney Redsull, Employee Benefits Manager, gave a summary of this item. Shawn Adkins, Gallagher Benefit Services, referred to the backup material and provided an overview of the Health Plan of Nevada (HPN) renewal offer for Plan Year 2022, the implementation of an Exclusive Provider Organization (EPO) plan in place of the HMO plan with health plan funding rates remaining the same for Plan Year 2022, and the elimination of the HMO plan option and requirement of all plan participants to enroll in either the Preferred Provider Organization (PPO) plan or the Consumer Driven Health Plan (CDHP) for Plan Year 2022. A lengthy discussion ensued regarding the benefits and drawbacks of the various options. Ms. Redsull said due to timing of the upcoming open enrollment, discussion of plan design changes to the current plan would also require a special meeting to implement. Amber Hubber, Health Plan of Nevada, via teleconference, provided a summary of the Alternate Plan Options. Self-Funded Insurance Committee Meeting Page 5 of 7 Wednesday, September 15, 2021 – Minutes Ms. Redsull said of the 101 total enrolled employees on the Health Plan of Nevada Plan, the Henderson Police Officers’ Association has the majority over the Henderson Police Supervisors’ Association. Jim McIntosh stated scheduling a special meeting would allow the Committee members that represent the police department to be present for the discussion. Mr. Adkins listed the administrative burdens that would follow from implementing the Health Plan of Nevada Renewal offer for Plan Year 2022 for approximately 100 people that are currently on the plan. Ms. Gilmore referred to pages 5 and 6 of the Joint Benefits Agreement (JBA) and stated this Committee has full authority to make changes within the Self-Funded Plan’s limitations. A copy of the JBA has been added to the backup material. (Motion) Mr. McIntosh introduced a motion to eliminate the HMO plan option and require all plan participants to enroll in either the Preferred Provider Organization (PPO) plan or the Consumer Driven Health Plan (CDHP) for Plan Year 2022, effective January 1, 2022, with funding rates remaining the same for Plan Year 2022. The roll call vote favoring passage was: Those voting aye: John Day, Jim McIntosh, Daniel Pentkowski, Laura Shearin, and Brooke Stream. Those voting nay: Christopher Aguiar. Those abstaining: None. Chairman Pentkowski declared the motion carried. Self-Funded Insurance Committee Meeting Page 6 of 7 Wednesday, September 15, 2021 – Minutes 6 PLAN YEAR 2022 SELF-FUNDED HEALTH PLAN RENEWAL REPORT AND FUNDING RATES FINANCE DEPARTMENT Review Plan Year 2022 Self-Funded Health Plan renewal report that includes estimated projected funding rate requirements for Plan Year 2022, including possible modifications to the dental plan funding. Direct staff to implement the funding rate model selected by the Committee. Funding rate models options include:  Retaining current funding model for medical/RX, dental, and vision rates for active employees, COBRA participants, and retirees.  Adjust the funding model to increase dental funding in both the Delta Dental and Sierra Healthcare Options (SHO) dental plans to account for projected shortfalls in the funding of the dental plans. This option will increase dental funding by 20.3 percent, or an estimated $214,150.00, in Plan Year 2022. This cost can be absorbed by the plan and will result in no change to monthly premiums for active members, but will result in an increase to retiree and COBRA monthly premiums of between $5.12 and $27.26 Per Employee Per Month, depending on the plan and tier the participant is enrolled in.  Any additional funding model the Committee may suggest, consider, and approve. Shawn Adkins, Gallagher Benefit Services, provided an overview of this item. Responding to an inquiry from Courtney Redsull, Employee Benefits Manager, requesting a premium estimate for increased deductibles, Mr. Adkins said he will provide several stop-loss optimization options. Mr. Adkins reviewed the Development of Needed Funding Report in detail and noted staff recommends making no changes at this time. Mr. Adkins reviewed the Development of Projected Paid Claims Dental and Vision report. (Motion) Mr. Aguiar introduced a motion to retain the current funding model for medical/RX, dental, and vision rates for active employees, COBRA participants, and retirees. The vote favoring approval was unanimous. Chairman Pentkowski declared the motion carried. Self-Funded Insurance Committee Meeting Page 7 of 7 Wednesday, September 15, 2021 – Minutes VI. CHAIRMAN\MEMBER COMMENTS Courtney Redsull, Employee Benefits Manager, reminded the Committee members of the 2021 International Foundation of Employee Benefit Plans (IFEBP) Employee Benefits Conference in Denver, Colorado next month and said if anyone is interested in attending, either in person or virtually, to contact her for more information. VII. SET NEXT MEETING The October 20, 2021, meeting was cancelled. The next meeting date was set for November 17, 2021, at 1:00 p.m. VIII. PUBLIC COMMENT Shawn Adkins, Gallagher Benefit Services, briefly stated many compliance-related and special reporting matters for air ambulance services are expected. He said the machine-readable file was deferred until July and additional guidance will be available. Mr. Adkins asked the Committee to contact him if they have any questions or concerns regarding the latest COVID-19 mandates that are in place. IX. ADJOURNMENT There being no further business to discuss, Chairman Pentkowski adjourned the meeting at 2:57 p.m. Respectfully Submitted, _____________________ Janet Sandifer, Deputy City Clerk