Employee Benefit Trust Minutes - 07/25/2006 CITY OF WICHITA FALLS
EMPLOYEE BENEFITS TRUST MEETING
July 25,2006
Present: Bill Sullivan, Chair
Darron Leiker, City Manager
David Winney, Director of Human Resources
Gail Garmon, Employee Benefits Coordinator
Cassie Stennett,Benefits Broker
Keith Brickert,Blue Cross/Blue Shield Account Representative
Sondra Ferrill,Pharmacare Account Representative
The meeting was called to order at 12:05 p.m.
Agenda Items:
Approval of Minutes
Bill Sullivan made a motion to accept the minutes of the last meeting. Darron Leiker had
one correction to the minutes, to change David Winney's title from Administrator to
Director of Human Resources. Jim Dockery seconded the motion. Motion carried.
Financial Statement
Jim Dockery gave a financial report on the Section 125 Flex Spending Account. He
reported that $231,000. of the committed $303,000. had been distributed. He confirmed
that this $303,000. means a savings of approximately $24,000. to the City's liability in
FICA taxes for the year.
He then reported that revenue is up $600,000. from last year of which $300,000 is the
committed amount for the flex spending accounts. He further stated that total revenue for
the year will be approximately $7,619,615. with total expenditures of approximately
$7,388,277, leaving a potential balance (savings) of approximately $231,338.
Pharmacare
Sondra Ferrill, account representative for Pharmacare, reported that while the City still is
seeing lesser increases in our prescription expenditures, as compared to other groups of
similar size, there are still savings to be gained if more subscribers could be steered
toward mail order. Darron Leiker asked that Pharmacare give us a list of
recommendations that might be implemented to accomplish this.
Sondra further reported that for the second quarter of 2006, the price of generic drugs is
up 10%, preferred is up 52% and non-preferred is up 5%, over the same quarter of 2005.
•
Blue Cross/Blue Shield
Keith Brickert, account representative for Blue Cross/Blue Shield presented a report
showing claims filed and paid for the period January 1 through June 30, 2006. During
that period the City's self funded health plan experienced a 46.1% provider savings on
billed claims. He reported that the normal savings is 42-45%. His report reflected total
claims payment for the period of$1,620,063 (an average of$153 per month per member)
and $242,711. in administration fees. He noted that claims paid as a Medicare
supplement totaled approximately $138,900 for the period. He was asked to have Blue
Cross refine future Medicare supplement reports to reflect the average amount paid per
month per member. The total dental claims paid for the same period totaled $192,006.
Mr. Brickert reported one claimant had exceeded the $200,000. stop loss limit, for which
the Trust will be reimbursed approximately$41,000 by their stop loss carrier, ING.
On-Site Clinic
Ken Phillis, PA for the City's On-Site Clinic presented a list of medications that are
currently on the City's prescription plan under the non-formulary (non-preferred) tier, at
$55.00 co-pay per retail script. He asked that the Board consider putting these
medications on the formulary (preferred)tier, at $40.00 co-pay. He also inquired as to the
possibility of revising the physical forms used in the Clinic and for revisions in the
scheduling of applicant and promotion appointments to the Clinic. The Board agreed to
consider his requests.
Mr. Phillis then reported that the Diabetic Education program at the local hospital cost
around $900 for ten hours of instruction. He stated that they are willing to provide it to
our diabetic employees and dependents for $300-$350. The Board decided to first find
out if this is a covered expense under the Blue Cross plan.
Mr. Phillis stated that the On-Site Clinic is in need of a computer. Jim Dockery stated
that he would look into the possibility of providing one for the Clinic's use.
In other business Gail Garmon, Employee Benefits Coordinator, reported that the Trust
had received reimbursement of $52,652.15 in Retiree Drug Subsidy for the first six
month of 2006, from Part D Advisors. Part D Advisors was contracted with to act as a
collector of subsidy payments due the Trust from Medicare for prescription medications
purchased by retiree medicare recipients. Subsequent subsidy payments should be
received quarterly.
The meeting was adjourned at 3:15 p.m.
Respectfully submitted.
Gail Garmon
Employee Benefits Coordinator