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HomeMy WebLinkAboutMinutes - Health Care Benefits Trust Board - 6/4/2024MINUTES HEALTH CARE BENEFITS TRUST REGULAR SESSION June 4, 2024 KACHINA CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 10:00 AM   CALL TO ORDER The meeting was called to order at 10:00 a.m.   ROLL CALL Present: Frank Trembulak, Chair Dave Gephart, Vice Chair Harry Greene, Member Mark Parston, Member Absent: Jennifer Marek, Member Staff Present:Jennifer Inboden, Board Secretary Andrew Votava, Human Resources Director Joe Andrews, Chief Civil Deputy Town Attorney Oscar Diaz, CBIZ VP of Business Development Sonya Martinez, CBIZ Account Executive CALL TO AUDIENCE - There were no speaker requests.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE APRIL 2, 2024 REGULAR SESSION MEETING MINUTES       Motion by Chair Frank Trembulak, seconded by Member Mark Parston to approve the April 2, 2024 regular session minutes.  Vote: 4 - 0 Carried   2.PRESENTATION AND DISCUSSION OF THE MEDICAL AND PHARMACY EXPERIENCE REPORT THROUGH APRIL 2024 Oscar Diaz, CBIZ VP of Business Development, presented the most recent Medical and Pharmacy report. He started by reviewing the paid claims and administration information for all plans combined. He pointed out that there has been an increase in enrollment. Mr. Diaz reminded the trustees that the Maximum Claims Liability is what the Stop Loss Insurance company holds the plan to. Anything above that will be covered by stop loss insurance. The maximum liability is 25% higher than Expected liability. There have been no stop loss recoveries yet this year. The average is 1-2 per year. The loss ratio for April was just 50% tracking at 80.2% for the expected claims liability, continuing a downward trend since February. The claims and admin fees per employee per month (PEPM) costs are tracking at $917, down    6/4/2024 Minutes, Health Care Benefits Trust 1 February. The claims and admin fees per employee per month (PEPM) costs are tracking at $917, down from $968 two months ago. The budget is tracking at $3.1 million or 84%. Ms. Martinez mentioned that due to the Change Healthcare cyberattack a few months ago, there may still be a delay in claims processed. She stated that as of right now, CBIZ is confident that UHC is processing at its normal speed. Chair Trembulak stated that HHS is requiring UHC to notify those clients whose data was compromised. Mr. Diaz continued to review the report and focused on the High Deductible Health Plan (HDHP) which has $1.27 million thus far this plan year for total claims and admin costs, which is a 67% loss ratio against expected liability. The claims and admin fees PEPM costs are tracking at $737. For the PPO Plan, total claims and admin fees are at $1.78 million, which is a 107% loss ratio against expected liability. Mr. Diaz reminded the trustees that it is typical for the loss ratio to be higher on PPO plans than on HDHP plans. The claims and admin fees PEPM costs for the PPO are tracking at $1,257. Mr. Diaz reviewed the year-over-year comparison which includes a completion factor. At this point, CBIZ is expecting the plan to come in at $3.6 million which is the same as the previous year. Because of the downward trend, assuming the same spend for the rest of the plan year, Mr. Diaz thinks the Town will finish the year between $950-$960 PEPM. The forecast shows that the plan is on track to finish the year at 88.6% of budget. Mr. Diaz explained the PEPM Total cost history over the past 10 years and how the plan has alternated between increases and decreases every year. The overall result is a 3.54% increase on average per year, which is beating the market. This confirms that it is still in the Town's best interest to remain self-insured rather than fully-insured. Mr. Diaz finished by going over the large claims over $50k, and was pleased to report that there are currently no claims large enough to trigger stop loss coverage. The current large claim percentage of medical and Rx claims is 17.6% which is much lower than the typical 24-32%. Member Parston asked if there are any pharmaceuticals that are identified for future negotiation on price. Mr. Diaz answered affirmatively for one of the large Rx claims which could bring the price down 10%. Vice Chair Gephart commented on the last several months and pointed out that the loss ratio for April for the HDHP is spot on with the average for the entire year. They were lower for February and March, but came back up for April. When compared with the PPO plan, the claims were down in February and March and came up in April. Hopefully, this is an indicator that the plan will end the year in a good spot.   3.PRESENTATION AND DISCUSSION OF THE FUND BALANCE REPORT THROUGH APRIL 2024 Vice Chair Gephart reviewed the fund balance through April. He noted that the numbers for April may still fluctuate slightly if any claims still come in. Total cash is $3.5 million. Total fund balance started the year at $2.8 million and is at $3.2 million at the end of April for an increase of $345,000. Total revenues are $3.6 million and total expenditures are $3.25 million.      4.PRESENTATION AND DISCUSSION ON OPEN ENROLLMENT 2024 Mr. Votava, Human Resources Director, presented a summary of open enrollment that took place during May. He explained to the trustees that the Town had three themes during open enrollment this year. The first theme was to calibrate the PPO and HDHP platforms by making plan design changes to the PPO. Deductibles, copay amounts and out of pocket maximums were increased. The second theme was to incentivize the HDHP so that employees are invested in their medical experience. One year ago the enrollment was 54% HDHP / 46% PPO; immediately before open enrollment the enrollment was 57% HDHP / 43% PPO and at the end of open enrollment, 62% of employees elected the HDHP compared with 38% on the PPO. The goal is to increase the consumerism spirit. The third theme of open enrollment was to invigorate the wellness plan. The Town implemented UHC Rewards and an internal incentive plan called Pillars of Wellness providing employees the opportunity to earn up to $1,360 in cash rewards. Data passed on to the Town by UHC shows that we have a 5% increase in lifestyle drugs including medications to treat high cholesterol, high blood pressure and high    6/4/2024 Minutes, Health Care Benefits Trust 2 increase in lifestyle drugs including medications to treat high cholesterol, high blood pressure and high A1C. That population is still spending and are mainly enrolled on the PPO plan. The hope is to encourage employees to engage in healthier activities by incentivizing them. The cash rewards will more than cover any premium increases that employees experience in the new plan year.   ADJOURNMENT    Motion by Chair Frank Trembulak, seconded by Member Mark Parston to adjourn the meeting at 10:45 a.m.  Vote: 4 - 0 Carried     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Health Care Benefits Trust held on the _4th_ day of __June___. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _7th__ day of __June__, 2024. ______________________________ Jen Inboden Human Resource Analyst 6/4/2024 Minutes, Health Care Benefits Trust 3