Employee Benefit Trust Minutes - 11/23/2004 Pt
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CITY OF WICHITYA FALLS
EMPLOYEE BENEFITS TRUST MEETING
November 23, 2004
Present: Bill Sullivan, Chair
James Berzina, City Manager
Jim Dockery, Director of Finance
Jan St icklin, Director of Administrative Services
Gail Garmon, Employee Benefits Coordinator
Mayor Bill Altman
The meeting was called to order by Bill Sullivan at 9:00 AM.
A motion was made and seconded to accept the minutes of the last meeting with one
correction to the start time of the meeting.
Agenda Items:
Financial Statement
Jim Dockery presented the year end financial report based on claims paid information
through September'04. Total revenue for the year was $6,854,402. and total expenses
was $7,054,100., for a year end deficit of$199,698.
It was noted that with the changes in copays to the prescription plan, which took effect
January 1, 2004, the increase in the cost to the plan for prescription medication coverage
was only 5-6% as opposed to the industry projection of 17-18%.
Mr. Dockery then presented a series of proposals aimed at shifting costs by raising the
deductibles for each plan. A 100% raise in deductibles would shift an estimated
$373,825., $211,452. a deductible raise of 50%, and $309,757. a raise of 75%. A motion
was made by Jan Stricklin to leave the plan premiums at the current rates and to raise
deductibles by 100% for each plan with two exceptions. Plan D has a separate deductible
of $500 for Emergency Room and $500 for Maternity/OBGYN. These two would
remain at $500. Also, there would be no increase in the deductible for the Medicare
Supplement plan which is set by Medicare. Out of pocket limits would remain at their
current levels. Motion was seconded by Bill Sullivan. Motion carried.
A proposal was made that would allow the Mayor and Council members and their
dependents to be covered under the Employee Benefits Trust Health and Dental Plan.
After some discussion, a motion was made by Jim Dockery that, effective January 1,
2005, they be allowed to choose a plan for which they would pay the current plan
premium plus the current City's contribution rate. The coverage would be in effect as
long as they are in office. Anyone serving six consecutive years, after January 1, 2005,
would then be allowed to continue the coverage for as long as they wish at the current
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COBRA rate. Coverage for anyone serving less than six consecutive years would end at
the conclusion of their term in office and any allowed COBRA coveage. Motion was
seconded by Jan Stricklin. Motion carried.
Old Business
Bill Sullivan inquired as to the status of the proposal made by the plan consultants to
explore the possibility of a better discount arrangement with United Regional Healthcare
System. Jan Stricklin stated that she and consultant Marvin Traywick would be meeting
with the hospital administrators in February to discuss the discounts.
New Business
There was no new business.
The meeting was adjourned at 12:05 PM.
Respectfully submitted,
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Gail Garmon
Employee Benefits Coordinator