Employee Benefit Trust Minutes - 05/04/2022 City of Wichita Falls
Employee Benefits Trust Board
Meeting Minutes
May 4th, 2022
The meeting was held in the City Council Conference Room at Memorial Auditorium, 1300
Seventh Street, Wichita Falls, TX 76301.
Present: Darron Leiker, City Manager
Kinley Hegglund, City Attorney
Christi Klyn, Director of Human Resources
Jessica Williams, Chief Financial Officer
Angela Bosma, Employee Benefits Specialist II
Brent Weegar, HUB Intl, Senior Vice President
Sara Collins, HUB Asst Vice President/Acct Mgr (remote)
Heath Haigood, Benefits Analyst
Agenda Items:
Meeting was called to order at 10:02 am
II. Minutes from the previous meeting on 8/26/21 were approved.
III. Financial Report was included in the HUB presentation
IV. HUB International presentation (taken directly from the HUB 5/4/22 binder):
a. "Overview
i. Financial Results: The City of Wichita Falls'total per capita healthcare
cost increased by +5.8% at year-end 2021. Per capita health claims
increased by +0.2% and prescription claims increased by +16.0% at year
end. For the 2021 plan year, there were 27 claimants over$50k
accounting for$4.1 m or 33.9% of claims spend. In comparison, for 2020
plan year, the City had 29 claimants over$50k, accounting for$5.6m or
45.8% of claims spend. There were $0 in stop loss reimbursements vs
$443k in stop loss premiums paid.
ii. COVID-19: In regard to COVID-19 claims, the City has incurred a total
of$1.3m of claims related to testing, treatment, and vaccination charges
since 1/1/21. There have been 160 or 7.4% of claimants who have been
diagnosed with COVID-19.
iii. Renewal: The City of Wichita Falls renews all lines of coverage except
for the Dental policy for the 2023 renewal. The City retains two renewal
options and HUB will pursue multi-year rate guarantees to extend
through the final renewal option for the City of Wichita Falls. HUB will
request that renewals be delivered by 7/1/22. Stop Loss will not be
delivered until 9/1/22 due to required claims history.
b. Historical Cost Analysis
c. Utilization Review
d. Budget Presentation
e. Benchmarking
f. Plan Design and Contributions
g. Strategic Recommendations:
i. Health Plan design: No significant adjustments are reqcoomended to
plan designs and it is a continued recommendation for the City to
sponsor the HSA pain for 2023 and limit adjustments to plan design and
funding. This will continue migration to a plan with incentives for better
management of plan costs. HUB is recommending the following short
and long term considerations:
1. Short Term: Pharmacy Benefit management— Embarc Protection
Program and High Performance Formulary; Out of Network
Benefit Exclusion — EPO plan; Behavioral Health Benefits — City
clinic
2. Long Term: Narrow Network Plans (HMO/High Performance);
Patient Navigation Program; Expert Medical Opinion Services;
and Audit Services (Pre/Post).
ii. Contributions: For the 2022 Plan year, the City is projected to fund 78%
of the total cost of health care. The City funds 93% to employee only
and 69% to dependent coverage for the HSA plan. The City is cost
neutral between the HSA and CAT plans however funds more to the
PPO Core plan. It is recommended to consider moving the PPO Core
plan towards cost neutrality over time.
iii. Retiree Plans: As a best practice, the City applies separate risk adjusted
rates for the retiree health programs which explicitly states the employer
and employee subside levels of retiree risk. Currently the City funds
between 59% and 56% of the retiree only premium and 0% toward
dependent coverage. The City is cost neutral between the HSA and
CAT plan however funds more to the PPO Core plan. It is recommended
to consider moving the PPO Core plan towards cost neutrality over time.
It is recommended for the City to consider contracting with HUB to
conduct the Retiree Rate Study and GASB 74/75 calculations. Our
integrated approach and expertise will provide the City with seamless
active and retiree benefits consulting.
iv. Compliance Items of Note: The 2022 PCORI fee is $2.79 per covered
life on the health plan and is due by July 31, 2022. No Surprises Act and
Title II of the Consolidated Appropriations Act of 2021 will require
implementation of multiple provisions over the next few years. Additional
information on requirements of health plan providers and employers are
included in the appendices of this report.
v. Dental: The Humana dental plan of benefits and funding structures are
in line with benchmarking. No significant changes are recommended at
this time. The dental administrative fees are in a rate guarantee with
Humana until 1/1/23.
vi. Vision: The fully insured Superior vision plan of benefits and funding
structures are in line with benchmarking. No significant changes are
recommended to the plan design or funding levels at this time. The
vision premiums are in a rate guarantee with Superior until 1/1/24.
vii. Life and Disability: The Symetra life and disability plan of benefits are in
a rate guarantee period until 1/1/23. The life insurance is in line with
benchmarking, however it is recommended to evaluate increasing the
$7,000 monthly maximum benefit for the long term disability plan. This
change would ensure all employees receive a full 40% core/60% buy up
income replacement if too sick or hurt to work.
viii. Employee Engagement:
1. Concierge Services: The Alight program engaged 28 households
for 41 solutions for a total of$17k in savings over the 2021 plan
year(0.21 to 1 ROI)
2. Employee Assistance Program: The Deer Oaks Employee
Assistance program engaged 40 cases over the 2021 plan year
with a utilization rate of 3.5%
3. Airrosti Program: 111 Cases with 96% improved outcomes and
100% satisfaction
4. Employee Communication Allowance: $10,000 for the 2022 plan
year. Our communications and design team will assist in crafting
an engagement plan to leverage benefits education and
communication for City employees.
ix. Optional Products discussion:
1. Group Optional Products (Hospital/Accident, Critical Illness, STD)
2. Benefit HUB Discount Program
x. HUB Resources:
1. Texas City Managers Association — Employment Agreement
Consulting
2. Financial— Bond Proceeds Management
3. Compensation, Performance Review, Leadership
Consulting/Training
4. Absence Management Consulting and Optimization
h. Renewal Timeline
V. QuadMed Behavioral Health presentation
VI. With no further business, the meeting was adjourned at 1204 hours.
Prepared by:
Angela D. Bosma, EBSII
City of Wichita Falls/HR Department