Employee Benefit Trust Minutes - 04/04/1996 CITY OF WICHITA FALLS
EMPLOYEE BENEFITS TRUST MEETING
APRIL 4, 1996
Present:
Greg Humbach, Chair
James Bernina, City Manager
Fred Werner, Director of Finance
Jan Stricklin, Employee Benefits Administrator
Gail Garmon, Employee Benefits Coordinator
The meeting was called to order by Mr. Humbach at 3:30 PM.
The minutes of the June 19, 1995 meeting was approved with
no corrections.
Agenda Items:
Financial Statement:
The first item presented by Ms. Stricklin was the
Claims Comparison. She noted that the paid claims for the
period of 10/01/95 through 02/28/96 were: Dental - 66,798.25
and Medical - $1 , 118,850. 10 for a total paid of
$1 , 185,648.35. The total for this same time period last
year was $811 ,329.96 for an increase of $374,318.39. Ms.
Stricklin noted that the Trust had four large claims during
this time, partially accounting for the increase. She also
noted that three of those cases have been closed so there
will be no more large expenses from those claimants. Ms.
Stricklin reported that even with the four large claims we
have had no claimant to yet meet the $150,000.00 specific
limit.
She then presented a chart showing the amount of
claims submitted and paid for employee, spouse, and
dependents for the period of 06/01/95 through 02/28/96. She
noted that for this period of time, the total submitted was
$3,488,904.40 and the total paid out was $2, 154,050.75. The
$1 ,334,853.65 not paid out by the City is due to case
management of claims, deductibles, occurrence fees, out of
pocket expenses, and the Prompt Payment Provider discounts.
Ratification of Stop Loss
Ms. Stricklin presented the bid analysis of the
last stop loss insurance renewal . The analysis showed the
three lowest bids received. They were from US Benefits,
Stop Loss International and Life of Georgia. She noted that
the lowest bid again came from US Benefits and for the
second year the Trust had accepted their bid. The analysis
Employee Benefits Trust Meeting
April, -4, 1996
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showed that last year the projected premium with US Benefits
was $77,761 .00 and the projected premium for the current
year is $87,035.00, an increase of about $10,000.00 but
still $30,000.00 less than the next lowest bid, Life of
Georgia. She informed the Trust members that there were two
other bids but they were not on the analysis bid sheet
because they did not meet the specification requirements
for the bid and were not considered. She also noted that
while the premium had increased, the annual aggregate had
gone down from $3,761 ,000.00 to $3, 148,000.00. Mr. Berzina
had some questions for Ms. Stricklin and Gail Garman
regarding the difference between the stop loss specific and
the annual aggregate which was explained. Mr. Berzina asked
whether the $374,000.00 increase in paid claims this year
over the same period for last year might be a trend and
prove to be a problem. Ms. Garman expressed that at the
end of this fiscal year the paid claims total is expected to
be close to the total for the last fiscal year.
Mr. Werner showed Mr. Berzina a financial report that
indicates that the Employee Benefits Trust plan had an
excess in revenue last year of $107,000.00.
Ms. Stricklin then presented a report on the (umbrella)
stop loss insurance coverage history from 1988 to 1995 which
gave figures on what the Trust has paid in stop loss and
what has been reimbursed to the Trust beyond the specific.
It was noted that for the years 1988 through 1992 we had no
claims to meet the specific coverage amount so no
reimbursements were required. In 1993, the Trust was
reimbursed a total of $55,019.00 and in 1995 a total of
$113,795.00 was reimbursed from the stop loss carrier. She
noted that prior to 1993, the stop loss specific had been
$125,000.00. The premiums for the $125,000 vs. $150,000
were quite a bit more and since there were no reimbursements
when the Trust was carrying a $125,000 specific, it was
decided the less expensive premium on the $150,000 specific
was more cost effective. This change was made in 1993.
Mr. Humbach asked for a motion to ratify the renewal of
stop loss coverage with US Benefits for the fiscal year
1995-1996 at a an annual projected premium of $87,035. Ms.
Stricklin made the motion, it was seconded by Fred Werner.
Mr. Werner asked for clarification as to the notation on the
Bid Analysis; Actively at Work - Yes and No. Ms. Stricklin
explained that with US Benefits the claimant does not have
to be actively at work for the stop loss coverage to apply.
The bids from Stop Loss International and Life of Georgia
carried the stipulation that the claimant must be actively
at work to be covered. In other words, Retirees and Cobra
participants would not be covered under the Stop Loss
International and Life of Georgia bids. Motion passed
unanimously.
Employee Benefits Trust Meeting
April. 4,• 1996
Page 3 •
Ratification of Prompt Payment Agreements
Mr. Humbach called for ratification of the current
Prompt Payment Provider agreements. Mr. Berzina made the
motion that the Trust members accept the agreements as
presented, Ms. Stricklin seconded. Motion passed
unanimously.
Amendment to Master Health and Dental Plan
Ms. Stricklin presented a proposal to limit yearly
maximum benefits payable on Accupuncture and Accupressure to
$500.00 each. She noted that these same limits already
apply to Chiropractic and Speech Therapy benefits. Motion
was made by Mr. Humbach and seconded by Ms. Stricklin to
accept these limits, effective June 1 , 1996 and to amend the
Master Health Plan accordingly. Mr. Werner made a motion to
amend the motion to have the limits set at $250.00 each.
The amended motion was not seconded, therefore not passed.
After some discussion, the original motion passed.
Discussion and Approval of Wellness Programs
Ms. Stricklin discussed the fact that last April
the City conducted Mammogram and PSA cancer screenings
through a joint program with the Bethania Hospital and the
City's On-Site Clinic. She stated that the same program is
planned for this year at about the same time. Proposals
were received from both the General Hospital and Bethania.
The proposal from Bethania came in a little lower and they
will provide these services at the same cost as last year.
She also stated that the City is working on a program to
conduct Cholesterol , Diabetes, and Thyroid screening all at
once at a very low cost. This testing could be done at the
On-Site Clinic. Mr. Werner made a motion to accept these
Wellness programs as presented, Mr. Humbach seconded the
motion. Motion passed unanimously.
Old Business
Ms. Stricklin reported that one of the pharmacist
in town had expressed concerns about the mail-order phase of
our ALTA RX prescription drug program. There seemed to be
some thought on his part that the program required
participants to mail-order prescriptions, taking money out
of town. He was contacted by our EBT office and by the ALTA
RX marketer to assure him that this stipulation is not a
part of the City' s plan. Participants are not required to
mail-order prescriptions, but may do so if they wish.
New Business
Mr. Berzina asked that if possible, the Employee
Benefits Trust meetings take place more often throughout
Employee Benefits Trust Meeting
April 4, 1996.
Page - 4
the year. A date of July 11 , 1996, 3:30 PM was set for the
next meeting.
The meeting was adjourned by Mr. Humbach
Respectfully submitted,
Jan Stricklin
Employee Benefits Administrator