Joint Insurance Committee

By The City of Oklahoma City Office of the City Clerk at 11:55 am, Dec 01, 2023 THE CITY OF OKLAHOMA CITY JOINT INSURANCE COMMITTEE Joanna McSpadden Isaac Locke Anne Lapuzza Donna Skidmore Larry Slaff Phil Smith 420 W Main Ste 110, Oklahoma City, OK 73102 Basement Conference Room December 6, 2023 8:30 a.m. It is the policy of the City to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or service in order to participate in this meeting should contact the ADA Personnel Department Coordinator at 297-2861 or TDD 297-2020 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting.  CITY OF OKLAHOMA CITY JOINT INSURANCE COMMITTEE AGENDA and MEETING NOTICE DATE: December 6, 2023 TIME: 8:30 a.m. PLACE: 420 W Main Ste 110, Oklahoma City, OK 73102 Basement Conference Room AGENDA: I. Call to Order II. Approval of Minutes A. June 16, 2023 III. Information from Vendors IV. Information from Employee Benefits Division A. 2024 Committee Meeting Schedule B. Plan Performance C. RFP / Renewal Updates D. Open Enrollment Wrap-Up  AGENDA ITEM II. Approval of June 16, 2023 Minutes  CITY OF OKLAHOMA CITY JOINT INSURANCE COMMITTEE MINUTES June 16, 2023 The Joint Insurance Committee meeting was held on June 16, 2023 at 8:30 a.m. in the City Municipal Building, 420 W Main, Ste 110 Basement Large Conference Room Those in attendance were: Members Present: Larry Slaff, Citizen Member Donna Skidmore, Retiree Member Joanna McSpadden, City Manager Designee Anne Lapuzza, FOP Lodge 123 Member Isaac Locke, AFSCME Representative Phil Smith, Citizen Member Members Absent: Staff Present: Jason Long, Total Rewards Manager Richard Mahoney, Ass Municipal Counselor III Jeanna Jordan, Benefit Specialist Billy Smith, Benefits Analyst I. Call to Order Jason Long, called to order the Joint Insurance Committee Meeting at 8:31 AM II. Approval of Minutes The minutes of the March 1, 2023 meeting was approved with no objection. III. Information From Vendors IV. Information from Employee Benefits Division Mr. Long introduced Jeanna Jordan as the Benefits Specialist. Mr. Long indicated Oracle Cloud ramp up for Live environment. V. Plan Performance Ms. Young reviewed plan performance materials. Ms. Young indicated HMO running at 89.2% loss ratio through 08/2023 with 9 claimants over $100k as of April 2023 with PEPY cost at $20,073 vs $19,322 in April 2022. Ms. Young noted 100 less participants enrolled compared to that same period last year. Ms. Young noted PPO running at 107.2% loss ratio through April 2023 with a projected PEPY of $15,702 versus $13,976 for the same period last year. 5 claimants over 100k and 1 that had reached the 300k stop loss through the month of April. Mr. Fina asked if claims are not combined across medical and prescription. Ms. Young confirmed claims are not combined. Ms. Young also noted the benefits of self insured plans. Mr. Mahoney asked about negatives to administrative fees. Mr. Long advised admin fees are generally washed out by RX credits. Ms. Young noted remaining RX credits are applied to claims balance. Ms. Lapuzza asked the cost of admin fees. Ms. Young stated roughly $45 PEPM. Ms. Young indicated combined plan performance at 96% loss ration. Mr. Mahoney asked has the Stop Loss coverage paid for itself. Mr. Young noted one claimant well over 300k for the year. Those additional claims covered stop loss premium. Mr. Slaff asked if the City will laser out individual claims. Ms. Young stated they do not recommend lasers in this case. IV. Information from Employee Benefits Division Continued V. Plan Performance Continued Mr. Slaff inquired about the status of RFP Ms. Young had no updates to share at this time. Mr. Long noted the City is still in the evaluation stages with final decision by end of July. Mr. Slaff asked if information will be available by next meeting. Mr. Long indicated with contracts and approvals information should be available. V. Citizens to be heard VI. Items from Committee Members VII. Adjournment Mr. Long adjourned the meeting at 9:03 A.M.  AGENDA ITEM III. Information from Vendors  AGENDA ITEM IV. Information From Employee Benefits Division A. 2024 Committee Meeting Schedule B. Plan Performance C. RFP / Renewal Updates D. Open Enrollment Wrap Up  MEMORANDUM The City of OKLAHOMA CITY TO: Amy Simpson City Clerk FROM: Jason Long Total Rewards Manager DATE: November 30, 2023 SUBJECT: 2024 Scheduled Meeting Notice – Joint Insurance Committee The Joint Insurance Committee (JIC) meetings are scheduled for 8:30 a.m. on the following dates in the James Couch Municipal Building Lower Level: March 6, June 5, September 4, and December 4, 2024 Normal duration of aforementioned meeting is approximately one hour. Meeting location: 420 W Main St, Oklahoma City, OK 73102 Lower Level, Large Conference Room Reference: 25 O.S. (2011 Supp.) §311 (A) 4. Jason Long, Interim Total Rewards Manager Beverly Asberry, City Council Office cc: Joint Insurance Committee Members JOINT INSURANCE COMMITTEE December 6, 2023 Agenda •Plan Performance / Utilization - HMO plan - PPO plan - Clinic •RFP / Renewal Updates - Outcome of RFPs - Implementations •Open Enrollment Wrap-Up 2 HMO Plan Performance Data through Sept 2023 Executive Summary HMO Plan Medical & Pharmacy  Plan is running at an 91.7% loss ratio through September 2023 (funding vs. expenses)  Projected Per Employee Per Year (PEPY) cost in September 2023 is $16,806 (in September 2022, it was $16,635)  Plan had 16 claimants over $100k through the month of September.  Net Medical Claims account for 81% of gross plan cost.  Net Pharmacy Claims account for 19% of gross plan cost. 4 4 Executive Dashboard 5 5 PPO Plan Performance Data through October 2023 Executive Summary PPO Plan Medical & Pharmacy  Plan is running at a 110.9% loss ratio through October 2023 (funding vs. expenses).  Projected Per Employee Per Year (PEPY) cost in October 2023 is $13,472 (in October 2022, it was $12,271)  Plan had 32 claimants over $100k through the month of October, 6 of those claimants were in excess of the $300k stop loss level.  To date, the City has received $774,820k in stop loss reimbursements  Net Medical Claims account for 50% of gross plan cost.  Net Pharmacy Claims account for 50% of gross plan cost. 7 7 Executive Dashboard 8 8 Preventive Care and Annual Physicals Clinic with Premise Health Data through September 2023 Executive Summary Clinic Utilization  Visits have been rising over the past few quarters  86% of visits were in person  Phone visits rose from 151 to 171  In Q2, 97 of the 765 unique members were new  To date, the City has received $774,820k in stop loss reimbursements  Average wait time is 3.4 minutes 11 11 RFP / Renewal Updates Request for Proposal (RFP) Outcomes • No longer offering a fully insured HMO with UHC Medical/Rx • Moved the HMO to a self-funded EPO with BCBS • No change to core HMO/EPO benefits • Renegotiated pharmacy contract terms to be more favorable • Renewed with UHC Medicare • Significant reduction in Retiree premiums (50% reduction) Advantage • No change to core benefits • Renewed with BCBS Life • Slight increase to life insurance rates but rates will be locked in for 5 years Employee • Renewed with AWP • No change to core benefits Assistance • AWP will be launching an app by 3rd Q 2024 Program • Planning additional education / information about program  Renewal Updates (Premiums and Plan Design) Medical/Rx • EPO and PPO Premiums stayed the same for 2024 • There were no changes to plan design • Rates increased for employees by 5% Dental • There were no changes to plan design Vision • Premiums stayed the same for 2024 • There were no changes to plan design  2024 RFP Activity Onsite • Clinic RFP will be deployed early 2024 • Expecting higher utilization and potential savings with all Health Clinic medical plans now being self-funded Open Enrollment OPEN ENROLLMENT SUMMARY MEETINGS TECHNOLOGY FEEDBACK NEW LOCATION ORACLE CLOUD EMPLOYEE FEEDBACK • Meetings took place in the OK • 100% online enrollment. • Liked the new location; easy to get Convention Center in and out • Significant effort by the Benefits • Space was great; could Team led to a successful • Appreciated the ability to enroll accommodate more individuals deployment of Oracle Cloud. easily online than in years past • Parking was good Independence changes everything. © 2022 Lockton Companies. 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