Joint Insurance Committee

By The City of Oklahoma City Office of the City Clerk at 12:50 pm, Jun 03, 2026 THE CITY OF OKLAHOMA CITY JOINT INSURANCE COMMITTEE Joanna McSpadden Isaac Locke Jeff Cooper Donna Skidmore Larry Slaff Phil Smith George Fina 420 W Main Ste 110, Oklahoma City, OK 73102 Basement Conference Room June 10, 2026 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: June 10, 2026 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. March 4, 2026 III. Information from Vendors A. Blue Cross Blue Shield / Prime IV. Information from Employee Benefits Division A. Plan Performance V. Items from Committee Members VI. Adjournment  AGENDA ITEM II. Approval of March 4, 2026 Minutes  CITY OF OKLAHOMA CITY JOINT INSURANCE COMMITTEE MINUTES March 4, 2026 The Joint Insurance Committee meeting was held on September 10, 2025 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 Isaac Locke, AFSCME Representative Joanna McSpadden, City Manager Designee Phil Smith, Citizen Member George Fina, Citizen Members Absent: Jeff Cooper, FOP Lodge 123 Member Staff Present: Jason Long, Total Rewards Manager Richard Mahoney, Asst Municipal Counselor III Lolly Landgraf, Sr. Human Resources 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 September 10, 2025 meeting was approved with no objection.  III. Information From Vendors IV. Information from Employee Benefits Division Lockton presented plan performance through December 2025. IV. Employee Benefits Division Update (Morgan and Jason) Health Plan Performance (2025 Plan Year): • All plans finished the year at just under 102% loss ratio (funding vs. expenses), meeting budget expectations. • Active EPO Plan: 91.4% loss ratio. • Active PPO Plan: 127% loss ratio, driven by several high-cost claimants. • Retiree Plans: Combined 108% loss ratio. • Per Employee Per Year (PEPY) for actives: $21,758 (2025), up 8.2% from $20,057 (2024). • Enrollment increased by ~5%, attributed to new hires and public safety recruit classes. Stop Loss Claims: • Active Plans: 10 claimants exceeded the $350,000 stop loss deductible; $2.51 million reimbursed. • Retiree Plans: 2 claimants exceeded deductible; $46,000 reimbursed. Population Distribution: • 70% of actives enrolled in EPO; 30% in PPO. • Loss ratios and funding strategies discussed; rate adjustments may be considered to prevent migration between plans and maintain balanced loss ratios. • Medical inflation was 8–9% in 2025, forecasted to rise to 9–10% over the next two years. Plan Performance Details: • Active plans: Loss ratio higher than 2024, as expected due to plan changes. • Retiree plans: Loss ratio improved from 120.5% (2024) to 108% (2025); fewer high-cost claimants. • Monthly breakdowns showed variance in loss ratios, with some months above 100% due to high claims. Pharmacy Data (through September): • Focus on year-over-year trends rather than financial totals due to rebate timing. • Percentage of low clinical value drugs paid is higher than the norm; ongoing review of formulary for savings opportunities. • Pharmaceutical companies often combine older medications into new patents, leading to higher costs for brand names compared to generics. • Breakdown of generics, brands, and specialty medications aligns with previous years; comparison with Lockton’s book of business helps identify areas for review. Biosimilars: • Biosimilars serve as "generics" for biologic specialty medications. • Biosimilars offer lower costs but typically fewer rebates; net plan cost is the key consideration. • Potential future strategies may include adjusting co-pays to incentivize biosimilar use. • Blue Cross will present further strategies at the June meeting. Copay Assistance Program: • (Larry) Inquired about a Flex Access program with Prime that assists employees in finding copay assistance for medications. • Program rolled out November 2025; Blue Cross to report on utilization in June. • Pharmacies should inform patients about available assistance; education efforts ongoing New Program: Musculoskeletal (MSK) Digital Therapy: • Intel program launched January 1, 2026 via Blue Cross Blue Shield; 100% coverage for employees and dependents. • Digital platform assigns a physical therapist and provides equipment for at-home therapy. • Program aims to reduce musculoskeletal claims and avoid costly, invasive procedures; voluntary participation. • Formal rollout planned for March or April; communication plan in development to educate and engage employees. Committee Discussion (Jason) • (Donna) Asked for any updates on negotiations between United and Integris. • Extension granted until March 8 and optimism expressed for resolution. • Discussion on the impact of negotiations on patients. VI. Adjournment (Jason) Motion to adjourn approved. Meeting adjourned at 9:02 AM. Next Meeting: Scheduled for June 10, 2026. V. Citizens to be heard VI. Items from Committee Members VII. Adjournment Mr. Long adjourned the meeting at 9:02 A.M.  AGENDA ITEM III. Information from Vendors  AGENDA ITEM IV. Information From Employee Benefits Division A. Plan Performance City of Oklahoma City Joint Insurance Committee June 2026 LOCKTON COMPANIES | 1 Health Plan Performance 1st Quarter 2026 (January – March) Executive Summary • On an all-plans combined basis; the plan is running at 99.5% loss ratio (funding vs. expenses). • The Active EPO plan is running with YTD expenses to budget/accrual ratios of 90.8% while the PPO Plan is running at 114.5%. • The Retiree plans are running at 92.4%. • Projected Per Employee Per Year (PEPY) cost for Actives is $22,252 (in March 2025, it was $20,549). An 8.3% increase. • Through March 2026, there have been 0 claimants over the ISL deductible. • This time last year, there were 15 claimants over the ISL deductible. LOCKTON COMPANIES | 3  ROLLING 12 NET CLAIMS PEPY TRENDING UP OVERALL ACTIVES TOTAL COST 01 THROUGH Q1 2026 IS IN LINE WITH BUDGET AVERAGE ENROLLMENT BY 02 TIER HAS REMAINED CONSISTENT AVERAGE ENROLLMENT BY PLAN 03 4 | LOCKTON LOCKTON COMPANIES | 4 Performance Overview – Actives Only LOCKTON COMPANIES | 5  ROLLING 12 NET CLAIMS PEPY TRENDING DOWN OVERALL RETIREE TOTAL COST 01 THROUGH Q1 2026 IS IN LINE WITH BUDGET AVERAGE ENROLLMENT BY 02 TIER HAS REMAINED PREDOMINATELY RETIREE ONLY AVERAGE ENROLLMENT BY PLAN 03 6 | LOCKTON LOCKTON COMPANIES | 6 Performance Overview – Retirees Only LOCKTON COMPANIES | 7 Independence changes everything. © 2024 Lockton Companies. All rights reserved. D: 2859452  AGENDA ITEM V. Items from Committee Members AGENDA ITEM VI. Adjournment