Municipal Authority

M3A MINUTES Sand Springs Municipal Authority February 25, 2019 Room #203 Following City Council Sand Springs Municipal Building 100 East Broadway Sand Springs, Oklahoma 74063 MEMBERS PRESENT: Chairman Mike Burdge (10-0) Trustee Dixon (7-3) Trustee Hamner (8-2) Trustee Beau Wilson (8-2) Trustee Brian Jackson (10-0) Trustee Jim Spoon (9-1) ALSO PRESENT: City Manager Elizabeth A. Gray City Attorney David Weatherford Secretary Janice L. Almy MEMBERS ABSENT: Vice Chairman Phil Nollan (9-1) The Sand Springs Municipal Authority met in regular session on February 25, 2019, in Room No. 203 of the Sand Springs Municipal Building pursuant to the agenda filed with the City Clerk’s office and posted at 11:00 a.m., on February 21, 2019, on the display board located in the first floor lobby of the Sand Springs Municipal Building, 100 East Broadway, Sand Springs, Oklahoma 74063. 1. Call to Order Chairman Burdge called the meeting to order at the noted time of 7:16 p.m. 2. Roll Call Chairman Burdge called for an individual roll call with members replying in the following manner: Trustee Jackson, here; Trustee Dixon, here; Trustee Spoon, here; Vice Chairman Nollan, no response; Chairman Burdge, here; Trustee Hamner, here; Trustee Wilson, here. It was noted for the record that Vice Mayor Nollan was absent from said meeting. 3. Consent Agenda (A-B) Chairman Burdge informed Trustees that all matters listed under Consent Agenda to be considered by Trustees are to be routine and will be enacted by one motion.  MUNICIPAL AUTHORITY MINUTES FEBRUARY 25, 2019 PAGE 2 Chairman Burdge noted that questions or clarification on any Consent Agenda items may be addressed prior to taking action. Chairman Burdge requested if Trustees had questions or needed clarification on any Consent Agenda items or whether any items needed to be considered separately. There being none, Chairman Burdge called for a motion regarding Consent Agenda Item No. 3A-3B. A motion was made by Trustee Spoon and seconded by Trustee Wilson to approve the Consent Agenda Item No. 3A-3B: A) The minutes of the January 28, 2019, regular Municipal Authority meeting. B) The Third Renewal Agreement with Precision Lawn Care of Tulsa, LLC., for the period beginning July 1, 2019, and ending June 30, 2020. Chairman Burdge called for the vote recorded as follows: Trustee Wilson, aye; Trustee Hamner, aye; Chairman Burdge, aye; Trustee Spoon, aye; Trustee Dixon, aye; Trustee Jackson, aye. The motion carried 6-0-0. 4. Financial Reports The regular monthly Financial Reports for all funds were provided to Trustees for their review and information. 5. Correspondence The following correspondence was provided to Trustees for their review and information: A) Regular monthly bills. 6. City Manager’s and Trustees’ Report There was nothing further to report at this time. 7. Adjournment The meeting adjourned at the noted time of 7:22 p.m. _______________________________ Janice L. Almy, Secretary  M3B Agenda Item #________ CITY OF SAND SPRINGS COUNCIL/AUTHORITY STAFF REPORT MEETING DATE: March 25, 2019 SUBJECT: Resolution No. M19-03 Employee Benefits (Insurance) Renewals STAFF RECOMMENDATION: Approval of Resolution No. M19-03 a resolution authorizing the Mayor to sign the renewal of agreements for employee benefits including group health, telemedicine, vision, dental and life insurance benefits. BACKGROUND AND HISTORY: Presently Community Care of Oklahoma provides group health insurance to City employees. The City pays 75% of the premium cost, with the remaining 25% coming from the employees. The initial renewal proposal from Community Care was a 12% increase in premiums due to high claims. Our Broker, Premier Consulting LLC, went out to market with one company returning quotes comparable to current rates; however, lacked in overall benefits. In looking at the options provided to us by Community Care, Staff conferred to settle on the primary health benefit option resulting in a 5% increase in premium with no change in the structure of the benefits to include deductibles/co-pays. Employees do still have the option to buy up to a lower deductible and co-pay plan with the additional expense being the responsibility of the employee. There are no changes to the Prescription Benefits that Community Care offers. The current structure differentiates Preferred Pharmacy Copays at: $0/$15/$40/$85/$260 and Non Preferred Pharmacy Copays at: $5/$20/$50/$105/$300 in addition to a differential between generic brand and name brand drugs. Last year the City offered a telemedicine benefit which has resulted in over $20,000 dollars in claims savings. This year the City has elected to change to a more robust telemedicine carrier known as HealthJoy. This plan allows employees to call into a licensed doctor for an evaluation of medical related needs preventing unnecessary emergency room or urgent care visits for basic routine illnesses. Additionally, the plan will assist employees in shopping the market for the most cost effective course of treatment/medicine within the employee’s network. The cost to the City for this added benefit will be approximately $13,182 annually. In addition, as a part of our drug-free workplace program, the City provides an employee assistance program for all employees and their dependents. Community Care has offered to again provide this service for fiscal year 2019 at no cost contingent upon the Council approving Community Care as the health insurance provider. Delta Dental has been the City’s dental provider for group dental benefits since the mid-1980’s. The City pays 100% of the employee’s coverage, while the employee is responsible for the cost of dependent coverage. For the first time in over five years the plan has seen an increase by 7%. Lincoln Financial provides group life insurance to City employees up to one times the annual salary for each employee at a rate of $0.215 per thousand. This rate includes Accidental Death & Dismemberment. The employee may purchase $5,000 for their spouse and $2,000 for each dependent child at a rate of $1.52 per family. The City pays 100% of the employee’s coverage, while the employee is responsible for the cost of spouse and dependent coverage. The rate is $0.215 per thousand, Life rate per $1,000 - $0.180 and AD&D rate per $1,000 - $0.035. Lincoln continues to provide additional life insurance that employees may purchase above the current one times salary limit. Employees can purchase up to $300,000 on themselves. Standard will guarantee issue $50,000 without completing a health questionnaire on new enrollees. Employees have to complete a health questionnaire for amounts greater than $50,000 or if changing existing coverage. Employees can also purchase up to $150,000 on their spouses, the guarantee issue amount for spouses is $10,000 for new enrollees. Employees can purchase up to $10,000 on their children. Lincoln also provides group long term disability to City employees. The City pays 100% of an employee’s coverage with 100% enrollment. The benefit is 60%, with a maximum monthly benefit of $5,000, and a minimum monthly benefit of the greater of $100 or 10%. An elimination period of 90 days and own occupation period of 24 months. The rate is $0.320 per 100. BUDGETARY IMPACT: With the increase in health insurance rates, the budgetary impact will be an increase of $116,577 over prior year. Transition to HealthJoy for the telemedicine benefit, the budgetary impact will be an increase of $3,482 over prior year. Dental insurance rate budgetary impact will be $8,490 over prior year Life insurance rate budgetary impact will be $0 (no increase). Long term disability rate budgetary impact will be $0 (no increase). Total budgetary impact will be an increase of $128,549 over prior year. This is included in the proposed FY20 budget. COMPILED BY: Amy Fairchild/Human Resources PRESENTED BY: Dason Gwartney/Premier Consulting LLC ATTACHMENTS: Medical Rates from Premier Consulting Partners Telemedicine Rates from Premier Consulting Partners Dental Rates from Premier Consulting Partners Life Rates from Premier Consulting Partners Long Term Disability Rates from Premier Consulting Partners  City of Sand Springs Markets Solicited July 1, 2019 Plans Medical BlueCross BlueShield Presenting Cigna Not Competitive Commuity Care Current Carrier United Healthcare Presenting Dental Delta Dental Current Carrier Guardian Presenting Sun Life Not Competitive Symetra Not Competitive Vision VSP Current Carrier Guardian Presenting Sun Life Not Competitive Symetra Not Competitive Life & Disability Lincoln Financial Current Carrier Guardian Declined to Quote Sun Life Not Competitive Symetra Not Competitive 3/13/2019 1  City of Sand Springs Medical Plan Analysis July 1, 2019 Plans Current Renewal Carrier Community Care Community Care BASE: IDEA Plus 3 BUY UP: IDEA Plus 1 BASE: IDEA Plus 3 BUY UP: IDEA Plus 1 Plan Name (Insure Oklahoma) (Insure Oklahoma) (Insure Oklahoma) (Insure Oklahoma) Benefits In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network Network CCOK Select HMO CCOK Select HMO CCOK Select HMO CCOK Select HMO Deductible Individual $1,000 $500 $1,000 $500 Family $2,000 $1,000 $2,000 $1,000 Coinsurance 100% 100% 100% 100% Out-of-Pocket Maximum Individual $3,000 $2,500 $3,000 $2,500 Family $6,000 $5,000 $6,000 $5,000 Professional Services Office Visit PCP $35 Emergency $25 Emergency $35 Emergency $25 Emergency Only Only Only Only Specialist $45 $35 $45 $35 Lab & X-Ray No Charge No Charge No Charge No Charge Diagnostic Imaging $150 AD $150 AD $150 AD $150 AD Hospital Services $250 per day AD $100 per day AD $250 per day AD $100 per day AD Inpatient Hospital ($1,000 per admit) ($500 per admit) ($1,000 per admit) ($500 per admit) Outpatient Hospital $200 AD $50 AD $200 AD $50 AD Emergency Services Urgent Care $50 $50 $50 $50 Emergency Room $150 AD $75 AD $150 AD $75 AD Prescription Drugs Deductible $0 $0 $0 $0 Preferred Pharmacy Copays $0 / $15 / $40 / $85 / $260 $0 / $15 / $40 / $85 / $260 N/A N/A Non-Preferred Pharmacy Copays $5 / $20 / $50 / $105 / $300 $5 / $20 / $50 / $105 / $300 $0 / $15 / $40 / $85 / $260 $0 / $15 / $40 / $85 / $260 Mail-Order 2 x Preferred Retail 2 x Preferred Retail 2 x Retail 2 x Retail Additional Information Rates BASE BUY UP Base Buy Up Base Buy Up Employee Only 46 18 $636.53 $700.17 $668.36 $735.18 Employee + Spouse 22 15 $1,266.42 $1,393.05 $1,329.74 $1,462.70 Employee + Child(ren) 12 2 $970.82 $1,067.89 $1,019.36 $1,121.28 Family 43 11 $1,630.97 $1,794.03 $1,712.52 $1,883.73 Estimated Monthly Premium $138,923.17 $55,368.95 $145,869.52 $58,137.33 Estimated Annual Premium $1,667,078.04 $664,427.40 $1,750,434.24 $697,647.96 Combined Annual Premium $2,331,505.44 $2,448,082.20 % Change from Current 5.0% $ Change from Current $116,577 For Illustrative Purposes Only. See SBC for detailed plan information. (AD=After Deductible) 3/13/2019 2  City of Sand Springs Medical Plan Analysis July 1, 2019 Plans Option 1 Option 2 Carrier BlueCross BlueShield United Healthcare Plan Name BASE: Blue Preferred $1,000 BUY UP: Blue Preferred $500 BASE: BCUH w/ Rx IU BUY UP: BCUG w/ Rx IU Benefits In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network In-Network Out-of-Network Network Blue Preferred PPO Blue Preferred PPO Navigate HMO Navigate HMO Deductible Individual $1,000 $2,000 $500 $1,000 $1,000 $500 Family $2,000 $4,000 $1,000 $2,000 $3,000 $1,500 Coinsurance 80% 50% 80% 50% 100% 100% Out-of-Pocket Maximum Individual $3,000 $10,000 $2,500 $10,000 $4,000 $3,250 Family $6,000 $20,000 $5,000 $20,000 $12,000 $9,750 Professional Services Office Visit <19: $0 Emergency <19: $0 Emergency PCP $35 30% AD $25 30% AD $20 Only $20 Only Specialist $45 30% AD $35 30% AD $60 $60 Lab & X-Ray $200 + 20% AD 50% AD $50 + 20% AD 50% AD No Charge No Charge Diagnostic Imaging $150 per scan 50% AD $150 per scan 50% AD No Charge No Charge Hospital Services Inpatient Hospital 20% AD 50% AD 20% AD 50% AD $0 AD $0 AD Outpatient Hospital $200 + 20% AD 50% AD $50 + 20% AD 50% AD $0 AD $0 AD Emergency Services Urgent Care $50 50% AD $50 50% AD $50 $50 Emergency Room $150 + 20% AD $75 + 20% AD $500 $500 Prescription Drugs Deductible $0 $0 $0 $0 Pharmacy Copays $15 / $40 / $85 / $260 $15 / $40 / $85 / $260 $15 / $40 / $75 $15 / $40 / $75 Mail-Order 2 x Retail 2 x Retail 2.5 x Retail 2.5 x Retail Additional Information Rates BASE BUY UP Base Buy Up Base Buy Up Employee Only 46 18 $684.91 $748.11 $710.92 $741.38 Employee + Spouse 22 15 $1,362.67 $1,492.11 $1,414.44 $1,475.04 Employee + Child(ren) 12 2 $1,044.60 $1,149.05 $1,084.29 $1,130.74 Family 43 11 $1,754.92 $1,927.19 $1,821.57 $1,899.62 Estimated Monthly Premium $149,481.36 $59,344.82 $155,158.99 $58,627.74 Estimated Annual Premium $1,793,776.32 $712,137.84 $1,861,907.88 $703,532.88 Combined Annual Premium $2,505,914.16 $2,565,440.76 % Change from Current 7.5% 10.0% $ Change from Current $174,409 $233,935 For Illustrative Purposes Only. See SBC for detailed plan information. (AD=After Deductible) 3/13/2019 3 City of Sand Springs Telemedicine Plan Analysis July 1, 2019 Plans Carrier HealthJoy Plan Name Concierge Service and Telemedicine Basic Information Plan Type Employer Paid Eligibility All Employees Rate Count Employee / Family 169 $6.50 Estimated Monthly Premium $1,098.50 Estimated Annual Premium $13,182.00 3/13/2019 4  City of Sand Springs Dental Plan Analysis July 1, 2019 Plans Current / Renewal Option 1 Carrier Delta Dental Guardian Plan Name Select Plan PPO PPO Dental Benefits In-Network Out-of-Network In-Network Out-of-Network Network Delta Dental PPO DentalGuard Preferred Annual Deductible Waived for Preventive Waived for Preventive Individual $50 $50 Family $150 $150 Annual Plan Maximum $1,000 $1,000 Coinsurance Diagnostic & Preventive 100% 100% 100% 100% Basic Services 80% 80% 80% 80% Major Services 50% 50% 50% 50% Services Perio Basic Basic Endo Basic Basic Oral Surgery Basic Basic Implants Major Major Orthodontic Services Lifetime Maximum $1,000 $1,000 Coinsurance 50% 50% Age Limitation Age 26 Age 26 Reasonable & Customary Negotiated MAC - 51st Negotiated UCR 90% Minimum Participation N/A 98% of eligible employees Dependent Limiting Age Age 26 Age 26 Additional Information Estimated 9.0% increase *Dental sold with Vision Rates Counts Current Renewal Option 1 Employee Only 95 $25.84 $27.66 $23.85 Employee + Family 99 $77.20 $82.60 $71.24 Estimated Monthly Premium $10,097.60 $10,805.10 $9,318.51 Estimated Annual Premium $121,171.20 $129,661.20 $111,822.12 % Change from Current 7.0% -7.7% $ Change from Current $8,490.00 -$9,349.08 3/13/2019 5  City of Sand Springs Vision Plan Analysis July 1, 2019 Plans Current / Renewal Option 1 Carrier VSP Guardian Plan Name Full Feature Choice Full Feature Choice B Benefits In-Network Out-of-Network In-Network Out-of-Network Network VSP Choice PPO VSP Choice PPO Copay Exams $10 $10 Materials $30 $25 Frequency of Services Eye Exams 12 Months 12 Months Lenses Benefit 12 Months 12 Months Contact Lenses 12 Months 12 Months Frames 24 Months 24 Months $150 Retail Allowance + $130 Allowance + Frames Allowance 20% off balance 20% off balance Contact Lens Allowance $150 Allowance $130 Allowance Additional Information *Vision sold with Dental Rates Counts Current Renewal Option 1 Employee Only 52 $8.15 $8.15 $8.15 Employee + Spouse 28 $13.04 $13.04 $13.04 Employee + Child(ren) 7 $13.31 $13.31 $13.31 Family 32 $21.46 $21.46 $21.46 Estimated Monthly Premium $1,568.81 $1,568.81 $1,568.81 Estimated Annual Premium $18,825.72 $18,825.72 $18,825.72 % Change from Current 0.0% 0.0% $ Change from Current $0.00 $0.00 3/13/2019 6  City of Sand Springs Life Plan Analysis July 1, 2019 Plans Current / Renewal Carrier Lincoln Financial Plan Name 1 x Salary Basic Life Basic Information Class / Eligibility All Employees Rate Guarantee Period Until July 2020 Employee Coverage 1 x Salary rounded up to next $1,000 Benefit Amount $150,000 Maximum Guarantee Issue $150,000 Dependent Coverage Spouse Benefit Amount $5,000 Child(ren) Benefits Amounts 14 Days to Age 21: $2,000 35% at age 65 Age Reduction Schedule 60% at age 70 75% at age 75 Additional Information Rates Volume Current Renewal Life Rate $0.180 $0.180 AD&D Rate $0.035 $0.035 Combined Rate per $1,000 $8,677,350 $0.215 $0.215 Dependent Rate per Unit 99 $1.520 $1.520 Estimated Monthly Premium $2,016.11 $2,016.11 Estimated Annual Premium $24,193.32 $24,193.32 % Change from Current 0.0% $ Change from Current $0.00 3/13/2019 7  City of Sand Springs Voluntary Life with AD&D Plan Analysis July 1, 2019 Plans Current / Renewal Carrier Lincoln Financial Plan Name Voluntary Life Basic Information Class / Eligibility All Employees Rate Guarantee Period Until July 2020 Life Benefit Maximum $10,000 increments up to lesser of Employee $300,000 or 5x Salary $5,000 increments up to lesser of Spouse $150,000 or 50% of EE Amount 6 Months to 19, 25 if FTS: Dependent Child(ren) $2,000 increments up to $10,000 Guarantee Issue Employee $50,000 Spouse $10,000 Dependent Child(ren) $10,000 35% at age 65 Reduction Schedule 60% at age 70 75% at age 75 Additional Information Rates per $1,000 <25 $0.080 25-29 $0.080 30-34 $0.080 35-39 $0.120 40-44 $0.180 45-49 $0.300 50-54 $0.460 55-59 $0.800 60-64 $0.900 65-69 $1.540 70-74 $2.740 75+ $10.400 Child $0.200 3/13/2019 8  City of Sand Springs Long Term Disability Plan Analysis July 1, 2019 Plans Current / Renewal Carrier Lincoln Financial Plan Name Long Term Disability Basic Information Plan Type Employer Paid Class / Eligibility All Employees Rate Guarantee Period Until July 2020 Benefits Benefit Percentage 60% Maximum Monthly Benefit $5,000 Minimum Monthly Benefit $100 Elimination Period 90 Days Own Occupation 24 Months Benefit Duration Later of age 65 or SSNRA Pre-Existing Limitation 3/12 Additional Information Rates Volume Current Renewal Rate per $100 $746,244 $0.320 $0.320 Estimated Monthly Premium $2,387.98 $2,387.98 Estimated Annual Premium $28,655.77 $28,655.77 % Change from Current 0.00% $ Change from Current $0.00 3/13/2019 9 M5A