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HomeMy WebLinkAbout06 29 2015 CMzS-S7 CITY OF CHUBBUCK COUNCIL MEETING AGENDA JUNE 29, 2015 — 2:30Pm CALL TO ORDER at 2:36pm by Mayor England IN ATTENDANCE: Mayor England, Councilmembers Morrison, Lewis, Ellis, Marshall, City Clerk Rich Morgan. GENERAL BUSINESS: 1. Discussion on Health Insurance. Mayor England turned the time over to Mark Semons. Mark Semons presented to the council a spreadsheet with premium quotes for providing health insurance to the City of Chubbuck. There were fully insured rates as well as self -funding rates for the Council to review. Fully insured quotes were from Regence and Pacific Source. Mark presented the three best self-funded options. Mark reminded the council that these are rates that he believes we will be able to get, in the fully funded options or even better rates in the self -funding options. However, insurance companies won't solidify these quotes until August 1, 2015. These quotes are considered to be the worst case scenario's. The city will have specific and aggregate stop loss coverage. Mark explained reference based pricing to the council and explained that it was the difference between the two Pacific Source quotes. Mark reminded the council of the small group quote and that the City of Chubbuck will be a small group next year. Councilmember Marshall asked what Mark was recommending. Mark would recommend the City self -fund alone. Marshall asked about lowering the deductible, that would require a change in plans. Councilmember Ellis asked about keeping a HSA qualifying deductible and increasing the contribution to the HSA. All are possible. Councilmember Lewis asked about the physician network with self -funding. He would like to ensure we are not limiting employees options and choices for physicians and hospitals. Councilmember Lewis looks at this possible change as the city being able to take control of its health insurance, Councilmember Ellis asked what past fees, assessed by the IIIA, will be refunded? We have been told the $177,120 assessment would be refunded at some percentage up to 25% per year, starting in October of 2016. Also, the start- up cost of $3,805 will be refunded. It is unknown exactly when. Amy Manning, the representative for the IIIA presented a spreadsheet allocating the IIIA's equity to the member Cities. Of the total, over 600 thousand is allocated to the City of Chubbuck. However, this equity stays in the IIIA in their fund balance. It is not the City's. Amy mentioned to the council that one of them, could be the board representative if they would like to make that change. The IIIA's actuary has reported that there should be a 9% decrease in the IIIA's rates. However, the Board of Trustees has voted to keep the money rather than return it to the Cities and the rates will only be adjusted by 1%. Amy said, If the trustees would have given a 9% decrease in rates, that would have been over $ 100,000 back to the City of Chubbuck. Councilmember Ellis asked Mark if his quotes were based on market rates. The discrepancy between the IIIA and the market is huge. Councilmember Lewis then ask Amy if the City is a governing member, and in charge of their own program, why then, when I ask for the City's claims information is the request denied. Amy responded that claims are not given out because the IIIA does not want the member Cities feuding with each other. Several Councilmembers commented that they do not want any other member Cities claims, but only the City of Chubbuck's. Amy then told the Council that they do get their claims. There was some confusion about whether claims were given to the Cities or not, after several minutes of discussion it again was settle that the City of Chubbuck did not and would not get their claim detail. Amy then said that she did not believe the City would get better rates than what Blue Cross has offered, She said all Cities are treated fair, the City of Chubbuck is getting a 10% rate reduction the other Cities are not getting because that is what is fair. She mention several times the IIIA is offering stability. She then said the City of Chubbuck has a lot of clout in the IIIA. Councilmember Ellis mention it wasn't enough clout to get the City's claims. Amy then stated that there would not be more than a 2% rate decrease, across the board, because of our withdrawal in the IIIA. Mayor England ask about the four Cities leaving and if there were others contemplating leaving that we do not know about. Councilmember Ellis commented that with this much turn over it seems that the IIIA is not working hard enough to keep the members happy. The IIIA should be worried about the small group plans that will have better rates than what is offered by the IIIA. Councilmember Lewis does not like the July I" deadline, He does like the idea of being in control of the City's health insurance. Both lead him to consider withdrawal. Councilmember Lewis does not mind the concept of the IIIA but there has to be a better way for the City to realize savings it is generating from a good plan and healthy employees when the savings are so large. Councilmember Lewis is also skeptical of the bad year scare tactic when the City has just as good a change of a good year in 2016. Councilmember Marshall does like the HSA concept, and does like the improved service with Blue Cross. He wants to ensure if we do go independent that we have a good administrator. Councilmember Marshall does not like the take it or leave it attitude presented by the IIIA. He always negotiates for a better deal. Mark commented that if the cities in the small group would look at the guaranteed rates they could get now in the health insurance market they would leave the IIIA. The guaranteed small group rates are lower than what they are paying now. Mark wants the council to understand the environment the City is in and the environment the City will be in if changes are made. Councilmember Ellis stated that with savings of over $600,000 per year, in two years that's 1,200,000, we can't just let that go. Councilmember Ellis motioned to adopt resolution 03-2015 notifying the IIIA that the City of Chubbuck is withdrawing. Councilmember Lewis seconded. Morrison -yes, Ellis -yes, Lewis yes, Marshall yes. ADJOURNED by Mayor England at 4:20pm. _x L 1 2 (; J Z5--7