Employee Benefit Trust Minutes - 10/25/2011 City of Wichita Falls
Employee Benefits Trust Board Minutes
October 25, 2011
The meeting was held in the City Council Conference Room, 1300 Seventh Street,
Wichita Falls, TX 76301 .
Present: Darron Leiker, City Manager
Jim Dockery, Asst. City Manager/CFO
Miles Risley, City Attorney
Tammy Guerra, Human Resources Manager
Jan Ducioame, Employee Benefits
Angela Bosma, Employee Benefits
Agenda Items:
Meeting was called to order at 9:00 a.m.
Minutes from October 19th, 2011 meeting were approved.
Ill. After a presentation by John Hammond of American Fidelity, there was discussion
and voting on recommendations for changes to benefit plans for City employees
and retirees.
1. Plan Year Renewals
EBT voted to approve renewals with BCBS and Caremark. There was no change
in the rate structure from Plan Year 2011 to Plan Year 2012. Tammy Guerra made
the motion; Darron Leiker seconded; motion approved.
2. Vendor Changes
• Section 125 —The Board voted to move from Alt Bentley Yates to AFLAC with a
worksite products option. Jim Dockery made the motion; Darron Leiker
seconded; motion approved.
v This change results in an annual savings of S17,382.40
• Stop Loss — The board approved the renewal with the current vendor Humana,
However, Humana's 2012 renewal includes a 46% per employee rate increase
due to the plan maturing. The board also approved EBT staff to authorize a
change, if savings is identified without coverage being compromised as a result
of a recent Request for Proposal. Miles Risley made the motion; Jim Dockery
seconded; motion approved.
3. Plan Design Changes
• The board approved increases in health premiums for both the employee and
pre-65 retirees. The board voted to increase the employee premiums by 18.5%
and the pre-65 retiree premiums by 10%. The board also acknowledged that
the City's share of employee dependent premiums is approximately 0% and
voted to reduce the City's share of the pre-65 retirees dependent premiums to
25%. The changes result in additional revenue to the plan of $191,816.52. Jim
Dockery made the motion; Tammy Guerra seconded; motion approved. The
premiums are detailed in the following chart:
e
Category 2011 Core 2012 Core 2(.)1.1 Enhanced 201.2 Enhanced
Employee Otdy $54.00 $64.00 $161.00 $1.90.81
1_mployee/Spouse $209.00 $219.00 $380.00 $409.81
Employee/Child $193.00 $203.00 $364.00 $393.81
Employee/Family $284.00 $294.00 $519.0() $548.81
Retiree Only $171.00 $188.10 $278.00 $305.80
Retiree/Spouse $321.00 $362.03 $492.00 $518.78
Retiree/Child $294.00 $344.07 $465.00 $496.80
Retiree/Family $364.00 $446.1.8 $578.00 $621.84
• The board approved moving the post 65-yr-old retirees to a fully insured option
with United Health Care. Medicare premiums will not change. Jim Dockery
made the motion; Darron Leiker seconded; motion approved.
✓ This will result in a savings of approximately $100K
• The board approved increases in dental premiums for both the employees and
pre-65 retirees. Darron Leiker made the motion; Jim Dockery seconded; motion
approved.
._..._ The changes as follows, result in additional revenue to the plan of $38,720.40.
Category 2011 Dental 2012 Dental
Employee Only $0.00 S2.50
Employee/Spouse............._$5...00_.......__..._._..........._.._.........._S7.50
Employee/Children $10.00 $12.50
Employee Family $15.00 $17.50
Retiree Only $0.00 $5.00
Retiree/Spouse $5.00 $17.09
Retiree Child $1.0.00 $18.1.8
Retiree/Family $15.00 $31.42
• The board approved increasing retail pharmacy co-pays. Currently the plan
offers a structure of $10/$40/$55 on 30-day retail prescriptions. The 2012 plan
year co-pays will be $10/S40/$60 on 30-day retail prescriptions. Tammy Guerra
made the motion; Darron Leiker seconded; motion approved.
• The board approved increasing mail pharmacy co-pays. Currently the plan
offers a structure of $20/$70/S96. The 2012 plan year co-pays for mail will be
structured at two times the 30-day retail co-pay, or $20/S80/$120. Tammy
Guerra made the motion; Jim Dockery seconded; motion approved.
✓ These changes result in a savings of $20,193
• The board approved increasing retail 90-day co-pays. Currently the plan offers
a structure of two-times the 30-day retail co-pays for retail 90-days fills or
($20/$80/$110). The 2012 plan year co-pays for 90-day retail will be structured
at three times the new 30-day retail co-pays, or ($30/$120/S180). This will drive
plan participants to use the 90-day mail option which gains the plan more in
rebates. Darron Leiker made the motion; Jim Dockery seconded; motion
approved.
✓ This change results in a savings of S49,040.
• The board approved opting the pharmacy plan into a more strenuous utilization
review, which will increase safety, dose optimization, the use of generics and
will include a push toward 90-day scripts. Darron Leiker made the motion;
Miles Risley seconded; motion approved.
✓ This change results in a savings of $11,539.00
• The board approved adding a specialty drug co-pay (fourth tier). Currently the
plan offers no specialty drug co-pay, thus most of these pharmaceuticals, which
cost in the thousands of dollars are paid at the second tier rate. The 2012 plan
year co-pay for specialty drugs will be $100. Darron Leiker made the motion;
Tammy Guerra seconded; motion approved.
• This change results in a savings of $19,000
4. Wellness Program
• The board voted to include employee spouses, pre-65 retirees and retiree
spouses in the wellness/tobacco cessation surcharge program. They will now
be subject to compliance with the programs or payment of the surcharge on
premiums. Tammy Guerra made the motion; Darron Leiker seconded; motion
approved.
• The board voted to double the wellness/tobacco cessation program surcharges.
The 2012 wellness charge will be $10 a month on premiums and the tobacco
use charge will be $20. Tammy Guerra made the motion; Darron Leiker
seconded; motion approved.
• The board voted to pilot a Naturally Slim program. Naturally Slim focuses on
helping users adopt healthy lifestyle habits such that a positive impact is made
upon biometric measures. Miles Risley made the motion; Jim Dockery
seconded; motion approved.
v This program will cost $11,550
5. Worksite Options — No vote required on this issue but there was discussion
regarding pre-tax or post-tax codes.
IV, Meeting was adjourned at 12:00 p.m.
•