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Employee Benefit Trust Minutes - 04/17/2008 CITY OF WICHITA FALLS EMPLOYEE BENEFITS TRUST BOARD MEETING April 17, 2008 Present: Bill Sullivan, Chair Darron Leiker, City Manager Jim Dockery, Asst. City Manager/CFO Tammy Guerra,Human Resource Manager Gail Garmon,Employee Benefits Coordinator Cassie Stennett, Broker Sondra Ferrill,Pharmaceutical Strategies Group The meeting was called to order at 11:30 a.m. Agenda Items: Approval of Minutes Jim Dockery made a motion to accept the minutes of the last meeting. Darron Leiker seconded the motion. Motion carried. Financial Statement Jim Dockery gave a brief report on the overall status of the Trust finances. He stated that based on the current claims paid figures, the Trust could end the year in the red, or at least near the break even point. He pointed out that the premiums had remained unchanged for the last three years and that an increase for the coming year might be necessary. This will be discussed at a future meeting. Report and Discussion on Possible Changes to Prescription Coverage Sondra Ferrill of Pharmaceutical Strategies Group gave a report on several changes to consider for the prescription coverage. She noted that the plan currently offers Prilosec OTC at no charge to the covered individual. This was implemented some time ago to encourage the use of the over the counter medications for ulcer and stomach conditions. Ms. Ferrill stated that several antihistamine medications are now offered in over the counter forms, including Claritin OTC, Loratadine OTC, and Zyrtec OTC. She suggested that the City add these to the plan at no cost to the insured, again in an effort to encourage the use of the lower cost, clinically-equivalent medications. She also suggested making a change in the coverage for brand name Ulcer/Stomach drugs. She stated that the plan could do away with the co-pays on these and instead implement a 40% coinsurance to the insured for the 30 day supply and 27% coinsurance for the 90 day supply, leaving in place the $0 co pay for Prilosec OTC, and the $10 and $20 co pay for the generic versions. Ms. Ferrill also stated that it is possible to have Walgreen's Health Initiatives send out a letter at the end of each year to each household showing the total they had spent for prescription costs for that year. There would be a charge to the Trust for each letter. Ms. Ferrill was asked to put together a plan for immediate changes and changes that might be appropriate for a later date. It was decided that she would put together a letter outlining the new medications to be offered at $0 co pay and the percentage co pays for the brand name Ulcer/Stomach drugs and forward the letter to the Employee Benefits Trust office. Employees and retirees will each receive a copy the letter. Report on Medicap Policies and Possible Changes to Retiree Benefits Package Cassie Stennett spoke to the Board regarding Medicare Supplement Plans, also known as Medigap Policies. She stated that it would be necessary for future retirees to purchase their own Medigap coverage when they become Medicare eligible, if the Board elects to discontinue offering it to future retirees. She noted that in her research of Medigap plans, she had found that most could purchase supplemental coverage as well as Medicare prescription coverage at around $200 per month or less. She stated that there are many types of Medigap policies but that the Plan F sold by all Medicap insurers is the one that mirrors the one the Trust currently has in place for Medicare eligible retirees. She noted that all Medicare eligible individuals are guaranteed acceptance onto a plan, provided they apply within the first 60 days of eligibility. Jim Dockery stated that the Trust would consider subsidizing the plan for current Medicare recipients with $100 per month. He further stated the possibility of a $250.00 subsidy for current retirees who will be Medicare eligible at some time in the future. In other words, current retirees will still be offered supplemental coverage through the Trust when they become eligible, and for future retirees there will be no Medicare supplemental coverage offered. Jim also suggested that the Board might look at denying coverage to dependents of future retirees who already have coverage available to them. The meeting was adjourned.