HomeMy WebLinkAbout14 1120 Council minutesThe City Council met on November 20, 2014 at 11:30 a.m., at the Plainview Convention
Center, 2902 W. 4th Street, Plainview, Texas. The agenda for this meeting was posted
in City Hall at 10:00 a.m. on November 17, 2014. Mayor Wendell Dunlap presided.
Councilmembers present were: Charles Stames-District 1, Charles Starnes -District 2,
Norma Juarez -District 3, Teressa King -District 4, Susan Blackerby-District 5, Lionel
Garcia -District 6 and Eric Hastey-District 7.
Staff members present were: Jeffrey Snyder -City Manager, Leslie Spear -City Attorney,
Mike Gilliland -Director of Public Works, Ken Coughlin -Police Chief, Rusty Powers -Fire
Chief, Isauro Gutierrez -Information Technology Specialist, Andrew Freeman -Assistant
City Manager, Shane Harrell -Personnel Specialist, and Belinda Hinojosa-City Secretary.
News Media Present: Homer Marquez -Plainview Herald
Guests Present: Ron Trusler, Beverly McCaskill, Mike Fox, Lanell Julian and Jim
Posey
Mayor Wendell Dunlap led in the Invocation.
Jeffrey Snyder, City Manager introduced Brent Weegar and Adam Hensen with IPS
Advisors, Inc. The City currently maintains a partially self-insured health insurance plan
with stop loss. The City is responsible for funding health insurance claims up to an
individual stop loss limit of $50,000. The City also purchases aggregate stop loss
protecting the plan if total paid claims exceed 125% of expected paid claims. Laser
stop loss deductibles are also present which exempt certain high risk individuals from
stop loss coverage until they reach a predetermined stop loss deductible. Currently
there are two lasers present with $300,000 and $65,000 deductibles.
The City has experienced a significant increase in its per capita health plan cost over
the last 12 months. Claims less Stop Loss reimbursements over the last 12 months total
$1,453,978 resulting in a per capita medical claims cost of $11,699. This represents an
59.5% increase per capita from 2013-2014 year end results. Large claims cost and
associated stop loss laser payments have been significant drivers of this trend.
TML released a renewal resulting in a 15.7% increase in expected costs from 2014-
2015. Additionally, the TML renewal includes $325,000 of Laser deductibles set on two
high risk individuals.
IPS conducted an RFP Process for both partially self-insured and fully -insured funding
models. BlueCross BlueShield has released the most competitive fully insured option
based on the current plan design at a 7.1% increase over current expected costs
including estimated terminal liability.
City Council Minutes
November 20, 2014 Page 1 of 2
387
388
Expected Cost Comparison
Expected Claims
TML PSF'
Current
51,511,002
TML PSF'
Renewal
51,710,970
UMR PSF'
51,633,224
BCBS P5F'
51,508,164
BCBS Fully
Insured
nla
TML Fully
Insured
n/a
UHC Fully
Insured
n!a
top Loss Premiums
5264.406
5347,553
5352,509
5361,411
nla
n/a
nla
}�dministrative Fees
$70,848
570,848
571,604
588,063
n/a
n/a
n/a
IAddlllonal Laser Liability
5265,000
5325,000
$325,000
5310.000
nla
nla
nla
Healthcare Refrom Fees
$25.740
518.216
518.216
518.216
Included
Included
Included
Fully Insured Premium Cost
nla
nla
nla
nla
52,128,543
52,355,882
52.526,432
erminal Liability
nla
nla
rile
nla
5160,690
5160.690
5160.690
'Total Expocted Cgot ....
$2.136.997
$1,472,p17
$2,400,552
12,285,854
1.2,289,p3
$2,518,571
$2,687,122
5 Change From Current
nla
5335.590
5263.558
5148,857
5152,235
5379,575
5550,125
Ali Change From Current
nla
15.7%
12.3%
7.0%
7.1%
17.8% 25.7%
Maximum Cost Comparison
Ihiax,mym Claim$
TML PSF"
Current
$1,888,753
TML PSF"
Renewal
$2.138.712
UMR PSF'
52.041,530
BCBS PSF'
51,885,205
BCBS Fully
Insured
nla
TML Fully
Insured
nla
UHC Fully
Insured
n/a
Stop Loss Premiums
5264.406
5347,553
5352.509
5361.411
nla
nla
rile
Administrative Fees
570,848
570,848
$71,604
$88,063
nla
nla
nla
Additional Laser Liabilil,
5265.000
5325.000
5325.000
5310.000
nla
nla
nla
Healthcare Refrom Fees
525.740
518.216
518.216
518.216
Included
Included
Included
Fully Insured Premium Cost
nla
nla
nla
nla
52.128.543
$2,355,882
52,526,432
Terminal Liabil ly
n!a
nla
nla
nla
$160.690
$160.690
5160,690
Total Maximum Coat
51,514,747
52,900,329
#2'.808,858
5,662,895
$2,289,233
-$2,118,071.
$2.897,122
$ Changs From Current
nla
5385,502
$294_111
1148,148
5225,514
51,824
5172,474
% Change From Current
nla
15.3%
11.7%
5.9%
° -9.0%
0.1'%
6.9%
[Promfum Twos included:
nfa
rJa
1 rJa 1 1.75%or$37k 1 '.751 S51k 1 1.75%ar$44k 1
They are proposing to go with the BlueCross BlueShield fully -funded plan and offer the
PPO "Buy -Up" and HSA — High Deductible Health Plan "Core Plan".
They also presented information on options for revised rate structures.
The proposals were sent out to A rated carriers. Three opted out on submitting a
proposal. On Stop loss, 15 opted out and five bids were received.
The Council and staff reviewed the agenda for the City Council meeting of November
25, 2014.
There being no further business, Mayor Dunlap adjourned the meeting at 1:16 p.m.
Belinda Hinojosa
City Secretary
City Council Minutes November 20, 2014 Page 2 of 2