Employee Benefit Trust Minutes - 06/12/2023 City of Wichita Falls
Employee Benefits Trust Board
Meeting Minutes
June 12th, 2023
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 International, Senior Vice President
Blaze McCarthy, Senior Account Manager
Tye Petty, Account Exective
Agenda Items:
I. Meeting was called to order at 3:00 pm.
II. Minutes from the previous meeting on 10/27/22 were approved.
III. The financial report was included within the HUB presentation.
IV. 2023 Mid-Year review by HUB International:
"Overview:
Financial Results: The City of Wichita Fall's total per capita healthcare cost decreased
by 16.0% at yearend 2022. Per capita health claims decreased by -21.0% and
prescription claims decreased by -10.8% at yearend. Over the past 5 years, the City
has achieved a 0.4% average claims trend vs the nation at 6.2%.
Through April, the 2023 total per capita costs are up 13%over prior period results when
compared to 2022. The City had 2 large claimants paid in January and has seen claims
reductions toward normative levels since. Claims expenses for FY23 are within budget
projections at this time.
Renewal: The City renews Medical, PBM, Stop Loss, Vision and EAP policies for the
2024 plan year. The City retains one final renewal option before and RFP is required
for the 2025 plan year. HUB will request that renewals be delivered by 7/1/23. Stop
Loss will not be delivered until 9/1/23 due to required claims history.
Moving Forward: The City has experienced significant growth in its fund balance due to
positive fund performance over the past 5 years. For FY24, it is recommended to
consider utilizing fund balance to improve the health insurance program and align with
best practices/municipal benchmarks."
Some of the PY24 changes that were discussed include: active employee premium
holidays (1 entire month per quarter) in addition to the 3 check months, lowering
medical deductibles and out of pocket maximums, lowering the specialist copays and
increasing the City's contribution to the HSA accounts.
"Strategic Recommendations:
Budget: Projected fund balance for year-end FY23 is expected to grow over$2.5M and
exceed $12.2M in cumulative fund balance. HUB recommends a minimum fund
balance of 25% of total expense which is $3.5M for FY23. For FY24, it is recommended
to consider utilizing fund balance to take measured steps toward improving the City's
health insurance program and align with best practices/municipal benchmarks.
Health Plan Design: HUB has provided the City with plan options including the following
recommended considerations for the 2024 Plan Year: Reduction to deductibles except
for required increase to HSA Plan, Reductions to out of pocket maximums for all plans,
elimination of inpatient and outpatient surgery copay for core and cat plans, reductions
to specialist copays levels for core and cat plans, increase in employer contributions to
HSA accounts, and elimination of out of network benefits (EPO plan).
"Contributions: For the 2023 Plan Year the City is projected to fund 78.0% of the total
cost of health care. The City funds 92.5% to employee only and 68.6% to dependent
coverage for the HSA plan. The City is cost neutral between the HSA and CAP plans
however funds more to the PPO Core plan. It is recommended to consider moving the
PPO Core plan towards cost neutrality over time.
However, for FY24, it is recommended to apply no increase to the employee
contributions and consider a one-time (2024 plan year) premium holiday for employees.
The budget includes a 3 month premium holiday if implemented by the City.
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. HUB has provided the recommended premium structure for
Retiree rates assuming the City implements the new plan options. Although increases
are required for retiree rates, retirees would have access to the improved plan designs if
implemented by the City.
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 1/1/25.
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.
Life and Disability: The Symetra life and disability plan of benefits are in a rate
guarantee period until 1/1/25. The life insurance is in line with benchmarking, however
it is recommended to evaluate increasing the $7,000 monthly maximum benefits for the
long term disability plan. HUB will provide the proposal at our renewal meeting.
Health Clinic services: The City continues to experience positive results from the
Employee Health Clinic. In 2023, the City expanded its services and implemented a 16
hour per week behavioral health counselor. The provider visits have steadily increased
each month since a flood impacted services. HUB is evaluating pricing to increase
provider time if needed in FY24.
Trending Focus Areas and Benefits:
- Benefits Administration and on-line enrollment
o Year-round online enrollment
o EDI Enrollment feeds to carriers
o Consolidated billing (one check)
o Paid as PEPM or through voluntary product commission
o Pet insurance
Renewal Timeline was the last item discussed."
This was the end of the HUB presentation; everything italicized is directly quoted from
the HUB presentation binder.
V. Express Scripts contacted the benefits office to extend an offer to add certain
HIV medications to our SaveOnSP formulary. This will result in additional
savings for the City (up to $0.30 PMPM). The members of the board voted to
approve this action.
VI. The Covid-19 Public Health Emergency and National Health Emergency
ended on 5/11/23. Based on that action, the following changes were made to
the City's health plan: Covid-19 diagnostic tests and testing-related visits are
now covered at the member's regular benefit level, Over-the-counter Covid-
19 diagnostic tests are not covered through medical or pharmacy benefits,
and FDA-authorized Covid-19 vaccines will be covered at the preventive
benefit level at an in-network provider office or in-network pharmacy.
VII. City ordinance 128-83 established the Employee Benefit Trust Fund,
appointed the trust committee and authorized the trust committee to utilize
city resources in conducting the business of the trust. Over the years, there
have been many changes to the trust agreement. Today, the EBT board
voted to update the agreement, incorporating all previously approved
changes and one new change regarding board members (from "Deputy City
Manager" to "City Manager Designee"). The board voted to incorporate all of
the changes and send the document to City council for approval.
VIII. Chief Financial Officer and EBT Board member Jessica Williams indicated
that the fund balance has grown to a balance that exceeds normal balance
limits and requires attention. She requested that the board make a policy
recommendation to be effective immediately. The board approved the
request.
IX. As an addition to the agenda, a current City employee was allowed to speak
to the employee benefit trust board. The employee requested the removal of
the City's medical plan exclusion for gender dysphoria treatments. If further
discussion is necessary, this subject will be an agenda item for an upcoming
meeting.
X. With no further business, the meeting was adjourned at 1638
Prepared by:
Angela D. Bosma, EBSII
City of Wichita Falls/HR-EBT