Employee Benefit Trust Minutes - 08/07/2024 City of Wichita Falls
Employee Benefits Trust Board
Meeting Minutes
August 7, 2024
The meeting was held in the Conference Room at Big Blue Tower, 719 Scott Ave., Wichita Falls,
TX 76301.
Present: Darron Leiker, City Manager
Paul Menzies, Assistant City Manager
Kinley Hegglund, City Attorney
Henry Anderson, Intern
Stephen Calvert, Chief Financial Officer
Christi Klyn, Director of Human Resources
Lori Forester, Employee Benefits Specialist II
Tamatha Kalick, HR Generalist/Employee Benefit Specialist
Blaze McCarthy, HUB International, Senior Account Manager
Heath Haigood, HUB International, Account Executive
Brent Weegar, HUB International, Senior Vice President
Agenda Items:
I. Meeting was called to order at 10:00 am.
II. Minutes from the previous meeting on 4/22/2024 were approved.
III. The financial report was included within the HUB presentation.
IV. 2024 Mid-year review by HUB International:
*Overview:
Financial Results: The City of Wichita Fall's total per capita healthcare cost increased by 7.5% at
year end 2023. Per capita health claims increased 8.4%. In 2023, Enrollment for the HSA plan
increased by 14.3%. Enrollment in the Core (low) plan decreased by-3.7%. Enrollment in the
CAT plan increased by 6.5%. Overall, enrollment decreased by-1.0% in 2023. Per capita total
net claims increased by 9.8%for active employees, but decreased -14.6%for retirees in 2023.
As of June 30, 2024, total revenue is $14,182,778 with total expenses being $11,186,411.
Revenues less expenses are $2,996,367. The projected amount for year end 2024 is $1,027,785.
Health Plan: HUB recommends renewing with BCBSTX for the medical administration and
transitioning its Pharmacy Coverage from Express Scripts to BCBSTX. Overall administration will
see an estimated +3% increase or $21k in additional annual fees. Pharmacy will see an
estimated -50% decrease in plan cost after rebates, which is an estimated $1.5m in annual
savings.
BCBSTX provided a $150k wellness allowance and a $30k communication credit as part of their
best and final offer. If the City adds the RX, BCBSTX will provide an additional $25k premium
credit and a 3-month administration fee waiver which is estimated to be $164k in value. It is
important to note that a stop loss recommendation will not be finalized until October.
Budget: Projected fund balance for year end FY24 is expected to grow by just over $1.0m and
exceed $15.0m in cumulative fund balance. Based on the city's fund balance policy, the
recommended minimum reserve is $3.7m for FY25. For FY25, due to RFP savings, no funding
increase is required for the City to cover expenses.
Contributions: For the 2024 Plan year, the City is projected to fund 80.6% of the total cost of
health care. The City funds 93.3%to employee only and 71.7%to dependent coverage for the
HSA Plan. The City is cost neutral between the HSA and CAT plans but funds more to the PPO
Core Plan. HUB is not recommending an adjustment to funding rates for the FY25 plan year.
Retiree Plans: Currently the City funds between 51% and 54% of the retiree only premium and
0%toward dependent coverage. No adjustments are recommended to retiree rates for FY25
plan year.
For the over age 65 retiree plan, the City offers access to a Medicare Advance through United
Health Care. The renewal premiums have not yet been received, however it is expected for a
larger increase in premiums due to the Inflation Reduction Act passed by Congress.
Health Clinic: HUB does not recommend any adjustments to the clinic at this time.
Dental: Renewal with Humana is recommended for the 2025 plan year. The administration will
decrease an estimated -9% or $3k in annual administration fees. There will be no change to
plan designs and rates will be guaranteed for 5-years. HUB is not recommending any
adjustments to funding contribution.
Vision: HUB recommends moving the fully insured vision plan to BCBSTX for the 2025 plan year.
Rates are -15% below current or an estimated $14k in annual premium savings. This also
includes increasing the frame allowance from $130 to $150 to bring the plan in line with
benchmarks. BCBSTX has included a $0.19 tech credit and rates will be guaranteed for 4-years.
Life and Disability: Renewal with Symetra is recommended for the 2025 plan year. The City has
the ability to increase the LTD maximum to $10k while seeing an estimated -4%or $6k in
annual premium savings. There will be no other plan design changes. Rates will be guaranteed
for 3-years.
Employee Assistant Program (EAP): Renewal with Deer Oaks is recommended for the 2025 plan
year. The City will receive a rate pass with a 5-year rate guarantee. There will be no change to
plan design.
HSA Administration: Renewal with HSA Bank is recommended for the 2025 plan year. The City
will receive a rate pass with a 3-year rate guarantee.
COBRA Administration: HUB recommends outsourcing the COBRA administration to WEX for
the 2025 plan year. The estimated annual cost for this service is $7k and rates will be
guaranteed for 5-years.
V. A motion was made and seconded to approve all HUB recommendations for the
2025 plan year. All members voted in favor.
VI. A motion was made and seconded to incorporate 6 employee benefit holidays for
the 2025 plan year. All members voted in favor.
VII. A motion was made and seconded that there will be no changes to premiums or City
contributions for the 2025 plan year. All members voted in favor.
VIII. A motion was made and seconded to begin moving the amount of the fund balance
in Mission Square from an aggressive portfolio to a more moderate portfolio and to
draft a full and more formal investment policy for these funds. All members voted in
favor.
IX. With no further business, the meeting was adjourned.
Prepared by:
Lori Forester, EBSII
City of Wichita Falls/HR-EBT