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HomeMy WebLinkAboutMinutes 8.28.14BOARD OF COUNTY COMMISSIONERS Minutes INSURANCE COMMITTEE The Insurance Committee Meeting was called to order by Chair Sean Boyle at 10:00 a.m. on August 28, 2014. Roll call was taken and the following members were present: Sean Boyle, Children's Services Council, Christine Weekes, Medical Examiner, Frannie Hutchinson, Commissioner District #3, Erin Craig, Children's Services Council, Shai Francis, Clerk of Court, Georgia Rich, Tax Collector, Ken Pruitt, Property Appraiser, Dori DiToro, Children's Services Council, Michaeleen Johnson, Tax Collector. Other members present: Robert Bentkofsky, Deputy County Administrator, Heather Young, Human Resources/County Attorney, Pennie Burke, Human Resources, Amanda Torresson, Human Resources, George Landry, Human Resources, Marie Gouin, Office of Management & Budget, Joanne Baker, Clerk of Court, Lorna Smart, Clerk of Court, Jim Davis, Ascension. The items reviewed and discussed were: ➢ Minutes from July 22, 2014 meeting were approved. ➢ Mr. Bentkofsky discussed the projections on the use of the Reserves. Mr. Bentkofsky provided handouts simultaneously to show the revenues and expenses for the Health Insurance Fund and the projection for future years. The first handout provided showed the estimated total of revenues and expenses for the current year of 2014 resulting in an estimated $4,121,255 reserve usage based on a 12 -month rolling period (subject to change). The majority of the expenditures are claims. The majority of the revenues side is the employer's share of the premium cost. For 2015 year, the estimates with trend of 9% total for an estimated $4,389,268 reserve usage. Mr. Bentkofsky reiterates that these numbers are based solely on estimates as the expenses are driven by claims. ➢ Mr. Bentkofsky then proceeds to speak on the management of the reserves. He then provides a handout of the Health Insurance Fund Budget Summary & Health Insurance Fund Analysis of Reserve Usage for an estimate of usage over the -next 7 years. These handouts are based on FY15 renewal and 9% annual claims trend. He begins with an estimated $10,081,558 available reserve fund. He reminds the Committee that these are solely estimates based on the information we have thus far. Employees share of the premium is raised 7% for single, 10% for employee plus one and 10% for family. Although the contributions will help stabilize the reserve fund, it will have a significant impact to our employees over the future years as employees will be hit in two ways; by the premium percentage they will be paying and by the premiums increasing each year. Currently we are only charging about 55-65% of what the true rate is and this shows where the gap really is. Beginning 2016, we would have a 25% increase in our premiums for 2 - years. Commissioner Hutchinson asked for clarification if this increase would be to the employee side, employer side or both. Mr. Bentkofsky stated what we charge on the employer side that is spread amongst all of our budgets would go up 25%. Depending on how we treat the employee share and how Mr. Bentkofsky shows it on his handout two things are happening. Their share goes up not only by the percentage they pay based on the amount of the premiums but also increases by 2% each year. This is purely an indicator of where we need to be. By 2021 the employee share is at 20%. All of the statistics even nationwide, we are severely low on what the employee share is. By 2019 we would have a budget that is self-sufficient. Mr. Bentkofsky then distributes the Premium Trends/Health Insurance Premium Cost Share handout. The top shows the FY2015 increase that was already discussed. The bottom reflects the premium trends from FY10 through FY15. Commissioner Hutchinson requests that we have a solid plan to present to the Board before shocking our employees. The education will come from Ascension. ➢ Mr. Bentkofsky then discusses the Dental Insurance. History of this, a few years ago when there was an increase in dental insurance there was a decision made to not pass it on to the employees and was subsidized by the reserve fund. This was supposed to be a 1 -year occurrence. Given what we know and project for the future with the reserves, do we want to continue the County subsidy or shift that to the employees as it was intended to a couple of years ago? Dental is paid 100% by employee or if the County wishes to continue to subsidize, do we place in perspective budgets, CHRIS DZADOVSKY, District No. 1 ❑ TOD MOWERY, District No. 2 C PAULA A. LEWIS, District No. 3 ❑ FRANNIE HUTCHINSON, District No. 4 0 KIM JOHNSON, District No. 5 County Administrator Interim —Dan McIntyre 2300 Virginia Avenue - Fort Pierce, FL. 34982-5652 -Phone (772)-462-1783 website: www.co.st-lucie.fl.us BOARD OF COUNTY COMMISSIONERS INSURANCE COMMITTEE continue with reserves, etc.? Commissioner Hutchinson questions how many participate in Dental. We are in excess of 70-80% who participate. NTr. Pruitt questions how much preventative is being utilized as children with decay typically end up in the ER. Jim Davis confirms that the preventative is highly utilized. Mr. Pruitt suggests that we move the costs to the employees incrementally (2 -years beginning 2016), not all at once, if we do decide the County removes the subsidy. Georgia brings up the inconsistency of employer contributions for the dental. A good starting point would be to make it consistent across the board with 20% subsidy. ➢ Chair Sean Boyle adjourns the meeting at 10:45am. ➢ Our next meeting to be scheduled in January 2015. CHRIS DZADOVSKY, District No. 1 O TOD MOWERY, District No. 2 0 PAULA A. LEWIS, District No. 3 0 FRANNIE HUTCHINSON, District No. 4 0 KIM JOHNSON, District No. 5 County Administrator Interim —Dan McIntyre 2300 Virginia Avenue - Fort Pierce, FL. 34982-5652 - Phone (772)-462-1783 website: mvw.co.st-lucie.flms