Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE MINUTES WEDNESDAY, June 26, 2024 I. CALL TO ORDER Chair Nick McLemore called the City of Henderson Self-Funded Insurance Committee meeting to order at 1:00 p.m. in the Tuscany Conference Room, 3rd Floor, City Hall, 240 South 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 Nevada Open Meeting Law. PRESENT: Chair Nick McLemore Maria Gamboa JJ Moyes Michael Page Daniel Pentkowski Brooke Stream Shawn Thibeault ALTERNATES: Carol Banks Joann Carter ABSENT: Christopher Aguiar (excused) Michael Charlton (excused) Rebecca Gillis (excused) Michael Goodwin (excused) Charles Hedrick (excused) Carlos McDade (excused) Michael Openshaw (excused) STAFF: Kristina Gilmore, Assistant City Attorney Courtney Redsull, Employee Benefits Manager Sindatuk Ulama, Deputy City Clerk Self-Funded Insurance Committee Meeting Page 2 of 6 Wednesday, June 26, 2024 – Minutes III. PUBLIC COMMENT Tiffany Reardon, 89015; Elizabeth Lopez, no zip code provided; and Alyssa Perea, no zip code provided; expressed their support of including fertility benefits in the plan design change and stated families with fertility challenges, and non-traditional families, would benefit from fertility treatment, and including fertility benefits would be a valuable incentive for recruitment. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Member Dan Pentkowski introduced a motion to accept the agenda as amended. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore declared the motion carried. V. NEW BUSINESS 1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE MAY 23, 2024 FINANCE DEPARTMENT (Motion) Vice Chair Shawn Thibeault introduced a motion to approve the Self-Funded Health Insurance Committee minutes of May 23, 2024. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore declared the motion carried. 2 MONTHLY FINANCIAL REPORT FINANCE DEPARTMENT Member Maria Gamboa, Director of Finance, reviewed and summarized the following financial reports from the backup materials: Self-Funded Health Insurance Fund (Fund 6051), Retiree Insurance Subsidy, and Stop Loss Restricted Cash, as of April 2024. Self-Funded Insurance Committee Meeting Page 3 of 6 Wednesday, June 26, 2024 – Minutes 3 THIRD PARTY ADMINISTRATOR MONTHLY REPORT FINANCE DEPARTMENT Russell Garrett, UMR, Inc., presented a summary of this item, referring to the backup materials, and highlighted the following information:  Financial Summary and Client-Employee Cost Share.  High-Cost Claimants.  Medical Utilization by Claim Category.  Medical Enrollment by Demographic.  Dental Enrollment by Demographic.  Medical Claims by Demographic.  Dental Claims by Demographic.  Diagnosis Grouper Summary.  Emergency Room and Urgent Care Summary.  Emergency Room and Urgent Care Utilization by Provider.  Quality Metrics. Mr. Garrett identified an error on page 19 of the backup in which the “total medical percentage change from plan year” shows 131.8% but should have shown 35.6% instead. 4 PLAN YEAR 2025 SELF-FUNDED HEALTH PLAN PRE-RENEWAL ESTIMATE REPORT AND FUNDING RATES FINANCE DEPARTMENT Shawn Adkins, Gallagher Benefit Services, presented a summary of this item and answered inquiries from the Committee regarding the following:  Marketplace trends: price inflation and frequency inflation.  Development of needed annual funding.  Effect of early retirement on rates.  Fixed Costs.  Development of projected paid claims.  Suggested funding rates. Self-Funded Insurance Committee Meeting Page 4 of 6 Wednesday, June 26, 2024 – Minutes 5 PLAN DESIGN CHANGE CONSIDERATION - FERTILITY TREATMENT BENEFIT FINANCE DEPARTMENT Courtney Redsull, Employee Benefits Manager, introduced options detailing the proposed benefits and potential impact to the plan. Committee members considered these plan design change options for covering fertility treatments as identified in the staff report and discussed the following:  Market-based benefit.  Limits to fertility treatment benefits.  Comparison to other organizations.  Out-of-state coverage.  In-network vs. out-of-network coverage.  Medical need vs. family structure needs.  Preclusion for individuals with no medical need.  Cryopreservation of eggs and snowflake fertility. No action was taken by the committee and the committee is awaiting additional information from UMR regarding United Healthcare medical policy related to authorization of fertility benefits. 6 PLAN DESIGN CHANGE CONSIDERATION - ACUPUNCTURE BENEFIT FINANCE DEPARTMENT Courtney Redsull, Employee Benefits Manager, introduced options detailing the proposed benefits and potential impact to the plan. Commission members considered these plan design change options for enhancing the existing acupuncture benefit as identified in the staff report and discussed the following:  Value per visit and visit limits.  Providers who offer acupuncture.  Comparison to other organizations. (Motion) Member Maria Gamboa introduced a motion to adopt Acupuncture Benefit Option 1: Replace $1,000 maximum with 12 visits per year limit, beginning January 1, 2025. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore declared the motion carried. Self-Funded Insurance Committee Meeting Page 5 of 6 Wednesday, June 26, 2024 – Minutes 7 PLAN DESIGN CHANGE CONSIDERATION - HEARING AID BENEFIT FINANCE DEPARTMENT Courtney Redsull, Employee Benefits Manager, introduced options detailing the proposed benefits and potential impact to the plan. Commission members considered these plan design change options for enhancement of the existing hearing aid benefit as identified in the staff report and discussed the following:  Audiologists available in Costco and Sam’s Club.  Cost of audiology exams.  Pediatric audiology exams and hearing-aid devices. (Motion) Vice Chair Shawn Thibeault introduced a motion to allow members to utilize Costco and Sams Club for hearing-aid devices, beginning January 1, 2025. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore declared the motion carried. 8 PLAN DESIGN CHANGE CONSIDERATION - PEDIATRIC NEUROPSYCHOLOGICAL EVALUATIONS FINANCE DEPARTMENT Courtney Redsull, Employee Benefits Manager, introduced options detailing the proposed benefits and potential impact to the plan. Commission members considered these plan design change options for enhancement of the pediatric neuropsychological evaluation benefit as identified in the staff report and discussed the following:  One-time nature of obtaining a diagnosis in order to receive services.  Services offered outside of the insurance plan.  Prior authorization required for out-of-network use. (Motion) Member Brooke Stream introduced a motion to implement Option 3: Provide an out-of-network allowable not to exceed $2,000, beginning August 1, 2024. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore declared the motion carried. Self-Funded Insurance Committee Meeting Page 6 of 6 Wednesday, June 26, 2024 – Minutes 9 PLAN DESIGN CHANGE CONSIDERATION - DELTA DENTAL PLAN ENHANCEMENT FINANCE DEPARTMENT Courtney Redsull, Employee Benefits Manager, introduced options detailing the proposed benefits and potential impact to the plan. Commission members considered these plan design change options for enhancement of the Delta Dental plan as identified in the staff report and discussed the following:  Dentistry use of amalgam vs resin.  Pediatric dentistry. (Motion) Member Maria Gamboa introduced a motion to change dental allowable from amalgam to resin (Delta Dental Only), beginning August 1, 2024, or the earliest possible date. (Vote) The vote favoring passage was unanimous. Chair Nick McLemore 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, August 21, 2024. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to come before the Committee, Chair Nick McLemore adjourned the meeting at 2:46 p.m. Respectfully Submitted, /s/ Sindatuk Ulama Sindatuk Ulama Deputy City Clerk