HomeMy WebLinkAboutMinutes 7.22.14BOARD OF
COUNTY
COMMISSIONERS
Minutes
INSURANCE
COMMITTEE
The Insurance Committee Meeting was called to order by Chair Sean Boyle at 10:00 a.m. on July 22, 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, Ken Pruitt, Property Appraiser, Chris Craft, Tax
Collector, Joe Smith, Clerk of Circuit Court, Georgia Rich, Tax Collector, Michaeleen Johnson, Tax Collector, Michelle
Franklin, Property Appraiser, Dori DiToro, Children's Services Council, Dan Field, Supervisor of Elections.
Other members present: Dan McIntyre, County Administrator Interim, Robert Bentkofsky, Deputy County Administrator,
Heather Young, Human Resources Interim, David Wood, Human Resources, Amanda Torresson, Human Resources,
Robert O'Sullivan, Office of Management & Budget, Marie Gouin, Office of Management & Budget, Lorna Smart, Clerk
of Court, Kim Titlebaum, Medical Examiner, Kathleen Meola, Ascension.
The items reviewed and discussed were:
➢ Minutes from June 18, 2014 meeting approved.
➢ Chair Sean Boyle opens a discussion on the Voluntary Benefits. Kathleen Meola confirmed that all Constitutionals
voted unanimously and Ascensions Ascension has started implementation with the carriers and Benefit Technologies.
There will be on-site enrollment counselors with a mandatory attendance, those who can't make the on-site
enrollments will need to contact the 800 number that will be provided. Any previous work -site benefits will need to
cease payroll deductions and employees will need to set up direct bill. The commissions from these coverages will be
used to pay for the enrollment, onsite enrollment counselors and Ascension's services. Everyone will receive a home
mailer in August which will provide further detail on the products and enrollment. All departments will also receive
posters to display for their employees to promote the enrollment. The enrollments will be August with a September 1,
2014 effective date. There will also be personalized mailings to each employee enrolled in the current work -site
benefits to notify them that the County will no longer be payroll deducting as well as a contact list on the carriers and
what they will need to do. Mr. Craft's office already has a letter drafted and will be sending to Mr. McIntyre to make
necessary adjustments and will be shared with all Constitutionals so that all notifications to employees are uniform.
Mr. Pruitt questions potential liability to Heather Young where the County will be ceasing deductions and whether the
County will need to conduct an aggressive outreach to employees to notify them of the events and what they will need
to do on their end. Both Heather and Kathleen stated that the County will be sending personalized letters to notify
employees.
➢ Chair Sean Boyle opens a discussion on moving from TASC to Health Equity. Kathleen speaks of the service with
TASC and how it has declined. She also mentions that Health Equity has been brought up in the past to the Insurance
Committee but never proceeded as there were banking issues that Shai would not be able to accommodate. The
service with TASC has furthermore declined and Kathleen was able to get an updated proposal as well as meet Shai's
banking needs. The Constitutionals would have the same process as they do today, they would have to commit to
ACH funds to Health Equity on a bi-weekly cycle as they payroll deduct from their employees. Is everyone
comfortable in making a change effective January 1, 2015. Mr. Smith asked for a clarification in regards to pre -
funding. Kathleen clarified that the Board would be pre -funding $50,000 and that Administration is comfortable with
signing off on it. Mr. Smith asked if there were other FSA's and Kathleen stated that last year Health Equity was the
superstar of the FSA's and that she recommends that we pursue this option as they are the best. Chair Boyle asked for
a recommendation to change from TASC to Health Equity, Mr. Pruitt moves it to a motion, Mr. Craft seconds it.
➢ Chair Sean Boyle opens discussion for Plan Modification. Mr. Bentkofsky speaks about the current issues of our plan
and the excise tax. He also discusses the conversation Administration had with Kathleen's group a couple of months
ago where he requested a phased in approach for plan modification to avoid the excise tax. Kathleen discusses the
updated renewal projection that includes the stop -loss preliminary renewal. Total paid claims in May were $629,000
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BOARD OF
COUNTY
COMMISSIONERS
INSURANCE
COMMITTEE
which was a very favorable month. We now have the preliminary renewal from Symetra and the trended claims
provided for 2014/2015 are projected at $10.6 million. Our current true funding rates (no the discounted rates) using
current enrollment would bring anticipated funding to $12,160,316.76 by the end of the year. The Health Plan
Renewal projection funding at 105% of expected claims as we have been doing in the past is $14,393.502.54 which
makes an 18.36% increase instead of the 24.5% increase we were looking at. Mr. Craft indicated that the $12.1
million is coming from a combination of EE, ER and Fund Balance funding. A separate question was asked of Mr.
Bentkofsky regarding the current Fund Balance. Mr. Bentkofsky stated that it is about $13 million but that is
inclusive of the safe harbor just under $2 million. Kathleen then shows what the funding rates would be if the County
kept everything just as is. Then she shows our potential excise tax being $523,590.48 in 2018 if the County would
continue to keep everything as is. Remember it is a one year tax and is perpetual. Mr. Craft questions if the tax can
be passed to the employee and Kathleen clarifies that it must be taken out of general fund, it is not a tax deductible
item. Kathleen then speaks of plan modeling and what we are able to do to avoid the excise tax as a phased in
approach. Option 2 would include plan changes removing co -pays and changing benefits to deductible + 15%
coinsurance. The prescription drug copays were not changed on this option. This plan would essentially provide a
2% credit to our expected claims meaning our projected increase would move from 18.36%. Kathleen then discusses
Option 3 & Option 4. Commissioner Hutchinson questioned if the County could offer an HSA and Kathleen started
that the County must offer a high deductible plan in order to qualify for offering a HSA. She also clarifies that in
today's IRS guidelines that having a first dollar coverages is prohibited. This would mean the Health and Wellness
Center would need charge a fee to members for anything other than preventative care. Kathleen then discusses the
fact that if we only moved to Option 3 of the phased in approach and maintained Option 3 through 2018, it is still
projected that we would experience and excise tax penalty. As it stands today, the only way to avoid the excise tax is
to move to Option 4 by 2018. Clerk Smith asked for clarification on Trend and Blue Cross. Kathleen explains that
the Trend is nationwide and not just Blue Cross. Trend is the year to year increase in the costs of healthcare goods
and services.
➢ Kathleen then speaks about increasing our employee contributions. She explains that we offer the richest benefits for
the least amount from the employees which causes us to get adversely selected upon meaning we receive all of the
dependents out there. Commissioner Hutchinson stated that the Board has already brought up the ideas of incentives
to direct employees removing dependents when other health plan options are offered. Mr. Bentkofsky also speaks of
the necessity of increasing the employee contributions by a standardized percentage as well as taking the first step in
2015 moving to Option 2. Mr. Bentkofsky presented a hand-out that showed the Employee's Share with no change,
an increase of 6%. Mr. Pruitt asked if this was a bold move and Kathleen indicated that it was a step in the right
direction. Chair Sean Boyle makes recommendation to move forward with Option 2 and Employee standardized
contribution increase, Mr. Pruitt puts it in motion and the Committee voted to move forward and is now pending
Board approval. Mr. Bentkofsky as well as Mr. Pruitt, Mr. Craft and Clerk Smith are all in agreeance that the Health
and Wellness Center will need to be expanded as this will drive employees to utilize the Center to prevent the out of
pocket expenses.
➢ Mr. Craft and Clerk Smith really want to put into place more Wellness programs as well as educate all employees on
how to research the comparative pricing on Florida Blue's website. Amanda stated that we are working on the
Wellness programs and will be going full force with them shortly. Amanda also stated that she is more than willing to
come to all Constitutionals to educate their employees on the Florida Blue website to further enhance the benefits
there with not only comparative pricing for services/medications but also the clinicians that are available to them.
➢ Chair Sean Boyle adjourned the meeting.
➢ Our next meeting to be scheduled in August.
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