Loading...
Employee Benefit Trust Minutes - 12/19/2005 CITY OF WICHITA FALLS EMPLOYEE BENEFITS TRUST MEETING December 19,2005 Present: Bill Sullivan, Chair Darron Leiker, City Manager Jim Dockery, Director of Finance David Winney, Director of Human Resources Gail Garmon, Employee Benefits Coordinator Marvin Traywick, Consultant The meeting was called to order at 9:00 am Agenda Items: Conference Call w/Cassie Stennett A conference call between the Board, Marvin Traywick and Cassie Stennett was conducted for the purpose of clarifying enrollment and waiting periods with regard to HIPPA regulations. Marvin explained that the employees, already qualified, should be able to bring their dependents on at open enrollment to be effective January 1. Darron concurred that current employees, not on any of the City's health plans, but who had satisfied the 60 day waiting period, should be able to enroll dependents, effective January 1. New employees and dependents coming on after the open enrollment period would still be subject to the 60 day waiting period. Cassie explained that the City is dealing with two different situations. Current employees, who previously had declined coverage and have now satisfied the waiting period, and new hires who are still subject to the waiting period. She noted that new employees, still going through their waiting period, should still satisfy that time frame before their coverage is effective. Bill Sullivan pointed out that even though the City may be inclined to let these dependents come on the plan January 1, the City qualifies as being a joint risk pool and therefore, not legally obligated to comply. The Board decided that even though it is not a requirement, they were in favor of structuring the plan to coincide with the HIPPA guidelines. Jim felt that all employees should now be notified that any qualified employees and/or dependents could come onto the plan as of January 1, if they wish. Cassie referred to the retirees who have in the past not been able to add dependents onto the plan. She explained that this is not common practice. It was noted that the Board had previously addressed this situation and that retirees had been notified that they would now be allowed to enroll dependents at open enrollment. Darron Leiker made a motion to conduct open enrollment as follows: lj New Hires 60 day waiting period Existing employees having satisfied the 60 day requirement could enroll and/or bring on dependents at open enrollment to be effective January 1. Jim Dockery seconded the motion. Motion carried. Jim Dockery opened discussion regarding the prepayment of premiums. Some employees had inquired as to what happened with their advance premium at the old rate. Previously, employees were required to pay premiums a month in advance. Under this system, they still had a month coverage when they left the City's employment. It was discussed that in order to get all employees paying their premium for the current month, rather than a month in advance, all premiums for those effective prior to January 1, be waived for January. This would enable all premiums to be started February 1. This would also allow for coverage to end at the end of the month in which the employee terminated service, eliminating the one month coverage after termination. Realizing that this would cost the Trust approximately $100,000.00 in lost premium for January, the board decided that the current system of deducting a month in advance would remain. The answer to the employees question would be that, although the new coverage would start January 1, the premium paid in January would be the premium for February because under the advance pay system, their January premium was paid in December. As for the end date of coverage, it would be the last day of the month in which they leave employment. David Winney made a motion to accept the premium deductions and coverage end date as discussed. Jim Dockery seconded the motion. Motion carried. Jim stated that some employees had found that it was financially advantageous for two employees, married to each other, with dependent children, to have everyone on the family plan rather than each employee on a separate plan with one carrying dependent child coverage. In the case of two married employees with no dependent children, it was less to have each one on their own coverage. Cassie cautioned that the plan document needed to state that an employee could not be covered both as a dependent and an employee, resulting in double coverage. Jim made a motion that the employee be allowed to choose which way would be most advantageous to them. Bill Sullivan seconded the motion. Motion carried. Jim then addressed the situation of who should and should not be allowed to use the On- Site clinic. In a previous meeting the Board had decided that anyone (employee or dependent) covered by the health plan, could use the clinic for a $5.00 fee. Any employee (part time or full time) not covered can use the clinic for a $25.00 fee. Dependents not covered by the plan are not eligible to use the clinic. Jim said that some people had expressed concern over the elimination of the clinic for non covered dependents. Darron stated that the On-Site clinic is heavily subsidized by the plan. Allowing dependents of employees, who may be covered under some other plan, to use the clinic, benefits that other plan. It was noted that not allowing the uncovered dependents to use the clinic could drive some employees to sign their dependents up on the plan. It was discussed that procedures should be set in place to determine who is and who is not covered by the plan, and how the amount of fees owed would be determined. It was further discussed that at some time, the fees for the clinic visits would be collected through the Employee Benefits Trust office, rather than in Personnel. It was decided that a clarification memo going out to all employees would convey the following: All employees currently on the City's health insurance coverage, who now wish to add dependents to the coverage, those dependents will have an effective date of January 1, 2006. All existing eligible employees enrolling dependents and/or themselves for the first time, the coverage will also be effective January 1, 2006. All new employees enrolling now or in the future, coverage will be effective the first day of the month following the sixtieth day of active full time employment. The meeting was adjourned at 10:30 am. Respectfully submitted, /7 Gail Garmon Employee Benefits Coordinator