Employee Benefit Trust Minutes - 05/05/1994 •
CITY OF WICHITA FALLS
EMPLOYEE BENEFITS TRUST MEETING
MAY 5, 1994
Present:
Greg Humbach, Chair
James Berzina, City Manager
Fred Werner , Director of Finance z�
Jan Stricklin, Employee Benefits Administrator
Gail Garmon, Employee Benefits Coordinator
The meeting was called to order by Mr. Humbach at 2t00 P.M.
The minutes of the November 18, 1993, were approved with no
corrections.
Agenda Items:
Financial Statement :
Ms. Stricklin presented the claims comparison for the period
October 1 , 1993, through March 31 , 1994. The amount
submitted was in excess of one million dollars with an
amount paid of $708,307.88. This is a decrease of
$44 ,511 .34 from the same period last year . One claim
exceeded $150,000 and Stop Loss was initiated . Currently
there are several large claims being processed but pone are
expected to exceed Stop Loss.
Claims processing is within thirty (30) days except for some
of the larger hospital bills. Prompt Payment Providers
bills are being paid within nine (9) days.
•
In response to a question, Ms. Stricklin explained a number
of claims were outstanding during the October .' through
December period but are now on track . The large number
claims from Prompt Payment Providers is creating an '.increase
in the need for timely processing of claims.
Mr . Berzina commented that changes in the plan designed to
meet anticipated increases in claims appeared to be keeping
the Trust within budget . The Trust should be self-
supporting . Ms. Stricklin agreed that as long as nothing
unforeseen occurs that this would be true.
Ms. Stricklin noted that the continued large amount paid
claims in the mental/nervous area are due to the claims
encumbered prior to changes in the plan and mental/nervous
claims should show a decrease in the future. There were
also a large amount of claims for diagnostic testing. Ms.
Stricklin hoped that these 'claims would decrease with
continued employee education.
Q\W. ..._......
Minutes of the May 3 , 1994 , Employee Benefits Trust Meeting (page 2)
i
Mr . Berzina asked whether the amount of claims submitted and
claims paid resulted in employees paying the difference.
Ms . Stricklin stated that some hospital and mental/nervous
are forgiven but little else is. However , much of the
difference is paid through discounts, and secondary, coverage
and medicaid .
Ratification of Stop Loss Coveraoe_ The City has continued with
a *150,000 specific but added an aggregate of *3,603,000 at a
cost of both of *134,000 per year compared to *99,000 for last
year which was without the aggregate. Stop Loss was presented
for approval as the other bids where cost prohibited . A specific
only bid without an aggregate was also proposed at a cost of
$102,000. A motion to accept the Stop Loss coverage (specific
and aggregate) was made and accepted .
Ratification of Prompt Payment Providers. The new Prompt Payment
Provider booklet with 143 providers and a list of new providers
who signed up after the booklet was printed was presented for the
boards approval . It was noted that Bethania was providing a 20%
discount except for cardiology services where a 30% discount is
given. Wichita General Hospital also provides a 20'/ discount
except for gynecology where a 5'h discount is given. The boaro
ratified the Prompt Payment Provider contracts unanimously.
New Business.
Ms. Stricklin introduced a situation where a retired employee had
three surgeries to involving a prosthesis in less than three
years . The concern was that this procedure would be repeated
again as surgery is not a cure for the condition. After .a
discussion, it was decided to wait to see if this situation
occurs in the future since this was a unusual situation
Old Business:
Mr . Werner stated he had been approached by individuals who
indicated a private company wanted to administer a plan for
Police and Fire. Ms. Stricklin stated she was aware of this and
had been providing the agent with information monthly. She has
not been brought a proposal and at one meeting with employees,
the agent admitted no one could do for the employees what the
City was doing .
Mr . Humbach adjourned the meeting.
Respectfully submitted .
;#(/
an Stricklin
Employee Benefit Administrator