Self-Funded Insurance Committee

CITY OF HENDERSON SELF-FUNDED INSURANCE COMMITTEE MINUTES Wednesday, August 20, 2025 I. CALL TO ORDER Chair Dan Pentkowski called the City of Henderson Self-Funded Insurance Committee meeting to order at 1:00 p.m., in the Green Valley Training Room, 2nd 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 Dan Pentkowski Christopher Aguiar Maria Gamboa – left at 3:20 p.m. Michael Goodwin – arrived at 1:35 p.m. Nick McLemore Javier Mendez – arrived at 1:03 p.m. JJ Moyes Michael Page ABSENT: None. ALTERNATES: Carol Banks – left at 2:56 p.m. Rebecca Gillis Charles Hedrick – left at 2:01 p.m. ABSENT: Joann Carter (excused) Jeff Melchert (excused) Carlos McDade (excused) Daniel Nerbonne (excused) Jonathan Ufers (excused) STAFF: Bre Beaumier, Employee Benefits Specialist Kristina Gilmore, Asst. City Attorney – arrived 1:07 p.m. Jennifer Gluyas, Employee Benefits Specialist Courtney Redsull, Employee Benefits Manager Michelle Reese, Deputy City Clerk Self-Funded Insurance Committee Meeting Page 2 of 8 Wednesday, August 20, 2025 – Minutes III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Member Chris Aguiar introduced a motion to accept the agenda, as presented. (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Nick McLemore, JJ Moyes, Michael Page. Those voting nay: (None). Those absent: Michael Goodwin, Javier Mendez. Chair Dan Pentkowski declared the motion carried. V. NEW BUSINESS 1 MINUTES SELF-FUNDED HEALTH INSURANCE COMMITTEE MAY 21, 2025 HUMAN RESOURCES DEPARTMENT (Motion) Member Chris Aguiar introduced a motion to approve the Self-Funded Health Insurance Committee minutes of May 21, 2025. (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Nick McLemore, JJ Moyes, Michael Page. Those voting nay: (None). Those absent: Michael Goodwin, Javier Mendez. Chair Dan Pentkowski declared the motion carried. 2 MONTHLY FINANCIAL REPORT HUMAN RESOURCES DEPARTMENT Rebecca Gillis, Accounting Manager, reviewed the City of Henderson Self- Funded Health Plan monthly financial report for June 2025. Self-Funded Insurance Committee Meeting Page 3 of 8 Wednesday, August 20, 2025 – Minutes 3 THIRD PARTY ADMINISTRATOR MONTHLY REPORT HUMAN RESOURCES DEPARTMENT Russell Garrett, UMR, Inc., provided a summary of the UMR, Inc. monthly report for June 2025, referring to the backup materials, and highlighted the following:  Dashboard & Leading Indicators  Enrollment & Claims Summary  Claims Summary - Payment Breakout  High-Cost Claimants - Summary & Top 20  Key Indicators  Network Utilization & Performance 4 GALLAGHER BENEFIT SERVICES QUARTERLY CLAIMS REPORT HUMAN RESOURCES DEPARTMENT Shawn Adkins, Gallagher Benefit Services, provided a summary of the Gallagher Benefit Services quarterly claims report for 2nd Quarter 2025, referring to the backup materials, and highlighted the following:  GBS Estimated Accrual Plan Status Report – All Benefits  GBS Estimated Accrual Medical Plan Status Report – Active Versus Retiree  Monthly Claim Summary – Medical & Rx  Large Claim Summary  Large Claim Analysis  Historical Claims & Enrollment Analysis – Medical & Rx  Historical Claims & Enrollment Analysis – Medical & Rx Rolling 12  Medical Cost Analysis  Monthly Claim Report - Dental (SHO)  Historical Claims & Enrollment Analysis - Dental (SHO)  Monthly Claim Report - Dental (Delta)  Historical Claims & Enrollment Analysis - Dental (Delta)  Monthly Claim Report - Vision  Historical Claims & Enrollment Analysis - Vision A brief discussion ensued regarding expected number of claims to exceed $100,000.00 and the average activity of similar plans in the years following the pandemic. Self-Funded Insurance Committee Meeting Page 4 of 8 Wednesday, August 20, 2025 – Minutes 5 CONSIDERATION OF PLAN LEVEL AGREEMENT FOR PHYSICAL THERAPY SERVICES HUMAN RESOURCES DEPARTMENT Courtney Redsull, Employee Benefits Manager, provided an overview of a proposed plan level agreement with Pro Team Tactical for physical therapy services for Fire and Police plan participants. Chair Dan Pentkowski provided a personal account of his experience with Pro Team Tactical for physical therapy. A discussion ensued regarding the members that would be eligible to utilize the benefit, the estimated usage, cost of treatment, experience with utilization for worker’s compensation cases, current physical therapy coverage through the plan, and potential implementation challenges of the plan-level agreement. Member JJ Moyes requested to trail the vote for this item until after the rates for Plan Year 2026 were decided in Items 7-9. The fellow members and Chair agreed and the item was closed at 1:50 p.m. Chair Dan Pentkowski reopened this item at 3:20 p.m. (Motion) Member Michael Goodwin introduced a motion to direct staff to authorize Sierra Healthcare Options to engage pro Team Tactical for a plan level agreement, at a cost not to exceed the proposed global rate of $125.00, at a potential cost to the health plan of approximately $110,000.00 annually, effective November 1, 2025. (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Michael Goodwin, Javier Mendez, JJ Moyes, Michael Page. Those voting nay: Nick McLemore, Rebecca Gillis. Those absent: (None). Chair Dan Pentkowski declared the motion carried. Self-Funded Insurance Committee Meeting Page 5 of 8 Wednesday, August 20, 2025 – Minutes 6 PHARMACY BENEFIT COST CONTAINMENT HUMAN RESOURCES DEPARTMENT Tom Kiesel, Express Scripts Inc., reviewed the report from Express Scripts, Inc. on potential advanced utilization management options, that if implemented, may result in cost savings to the City Self-Funded Health Plan. A discussion ensued regarding the estimated savings per member, potential delays in access to medications, estimated number of members that could be affected, strategies to reduce impact to members, and differences in savings package options. A more refined report will be presented at a future meeting as a voting item. Future reporting will include options that relate to cost savings when continuing therapies for existing members are applied. 7 PLAN YEAR 2026 SELF-FUNDED HEALTH PLAN RENEWAL REPORT AND FUNDING RATES HUMAN RESOURCES DEPARTMENT Shawn Adkins, Gallagher Benefit Services, and Courtney Redsull, Employee Benefits Manager, provided an overview of this item and reviewed the funding model options for Plan Year 2026 as identified in the staff report and discussed different financial pressures and overall health of the plan. A discussion ensued regarding the effect of upcoming labor negotiations and the benefit of having small increases spread over several years versus a larger increase in the future. (Motion) Vice-Chair Nick McLemore introduced a motion to recommend funding increase for Plan Year 2026 addressed partially though funding rate increases and partially through Plan Reserve Buy Down (approximately $288,181.00 for Retirees) where the City funding rate is increased by 10.0%, representing approximately $2,062,709.00 in increased funding for Plan Year 2026, and raising the City’s funding rate to $1,257.80 per employee per month; the active employee funding rate is increased by 9.9%, representing approximately $364,007.00 in increased funding for Plan Year 2026; and the retiree funding rate is increased by 10.1%, representing approximately $398,175.00 in increased funding for Plan Year 2026. (Vote) The vote favoring approval was: Those voting aye: Nick McLemore. Those voting nay: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Michael Goodwin, Javier Mendez, JJ Moyes, Michael Page. Those absent: (None). Chair Dan Pentkowski declared the motion failed. Self-Funded Insurance Committee Meeting Page 6 of 8 Wednesday, August 20, 2025 – Minutes (Motion) Member Maria Gamboa introduced a motion to recommend funding increases for Plan Year 2026 addressed partially through funding rate increases and partially through Plan Reserve Buy Down (approximately $500,000.00 for Active Employees and $372,960.00 for Retirees), where the City funding rate is increased by 8.0%, representing approximately $1,637,807.00 in increased funding for Plan Year 2026, and raising the City’s funding rate to $1,234.18 per employee per month; active employee funding rate is increased by 7.8%, representing approximately $289,053.00 in increased funding for Plan Year 2026; and the retiree funding rate is increased by 7.9%, representing approximately $313,397.00 in increased funding for Plan Year 2026. (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Michael Goodwin, Nick McLemore, Javier Mendez, JJ Moyes, Michael Page. Those voting nay: (None). Those absent: (None). Chair Dan Pentkowski declared the motion carried. 8 SELF-FUNDED HEALTH PLAN ACTIVE EMPLOYEE MONTHLY PREMIUM RATES FOR PLAN YEAR 2026 HUMAN RESOURCES DEPARTMENT Courtney Redsull, Employee Benefits Manager, reviewed the monthly premium rate options for active employees in Plan Year 2026 as identified in the staff report. (Motion) Member Michael Goodwin introduced a motion recommending funding increases for Plan Year 2026 addressed partially through funding rate increases (approximately 7.8%) and partially through Plan Reserve Buy Down (approximately $500,000.00 for Active Employees). Corresponding Active Employee Coverage Tier Monthly Premium Rates: Employee Only: $108.76 Employee + Spouse: $260.08 Employee + Child(ren): $201.66 Employee + Family: $331.26 (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Michael Goodwin, Nick McLemore, Javier Mendez, JJ Moyes, Michael Page. Those voting nay: (None). Those absent: (None). Chair Dan Pentkowski declared the motion carried. Self-Funded Insurance Committee Meeting Page 7 of 8 Wednesday, August 20, 2025 – Minutes 9 SELF-FUNDED HEALTH PLAN RETIREE MONTHLY PREMIUM RATES FOR PLAN YEAR 2026 HUMAN RESOURCES DEPARTMENT Courtney Redsull, Employee Benefits Manager, reviewed the options for retiree monthly premium rates in Plan Year 2026 as presented in the staff report. (Motion) Vice-Chair Nick McLemore introduced a motion to recommend funding increases for Plan Year 2026 addressed partially through funding rate increases (7.9% Increase), and partially through Plan Reserve Buy Down (approximately $372,960.00 for Retirees). Corresponding Retiree Coverage Tier Monthly Premium Rates: Coverage that Includes Sierra Healthcare Options Dental Retiree Only: $684.60 Retiree + Spouse: $1,400.24 Retiree + Child(ren): $1,229.84 Retiree + Family: $1,945.52 Coverage that Includes Delta Dental Retiree Only: $711.46 Retiree + Spouse: $1,455.30 Retiree + Child(ren): $1,278.18 Retiree + Family: $2,022.06 (Vote) The vote favoring approval was: Those voting aye: Chair Dan Pentkowski, Chris Aguiar, Maria Gamboa, Michael Goodwin, Nick McLemore, Javier Mendez, JJ Moyes, Michael Page. Those voting nay: (None). Those absent: (None). Chair Dan Pentkowski declared the motion carried. 10 ELIGIBILITY FOR RETIREE DEPENDENT COVERAGE - TOTALLY DISABLED DEPENDENT CHILDREN OVER AGE 26 HUMAN RESOURCES DEPARTMENT Discuss Committee's intent relative to continued eligibility of totally disabled adult children over age 26 that are dependents of City Self-Funded Retirees that are turning 65 and no longer eligible for coverage through the City Self-Funded Health Plan. The Summary Plan Description is silent on this matter of continued eligibility. Self-Funded Insurance Committee Meeting Page 8 of 8 Wednesday, August 20, 2025 – Minutes This item was continued to a future agenda due to time constraints, at the request of staff. VI. CHAIRMAN\MEMBER COMMENTS Shawn Adkins, Gallagher Benefit Services, stated there will be some topics on future agendas related to legislative changes. Courtney Redsull, Employee Benefits Manager, noted that the October meeting will likely be Chair Dan Pentkowski’s last meeting. VII. SET NEXT MEETING The next meeting was set for Wednesday, September 17, 2025, at 1:00 p.m. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to come before the Committee, Chair Dan Pentkowski adjourned the meeting at 3:27 p.m. Respectfully Submitted, /s/ Michelle Reese Michelle Reese Deputy City Clerk