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HomeMy WebLinkAboutMinutes - Health Care Benefits Trust Board - 12/3/2024MINUTES HEALTH CARE BENEFITS TRUST REGULAR SESSION December 3, 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 Mark Parston, Member Jennifer Marek, Member Absent: Harry Greene, Member Staff Present:Jennifer Inboden, Board Secretary Tobin Sidles, Legal Services Director 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 SEPTEMBER 24, 2024 REGULAR SESSION MEETING MINUTES       Motion by Chair Frank Trembulak, seconded by Member Mark Parston to approve the September 24, 2024 regular session minutes.  Vote: 4 - 0 Carried   2.PRESENTATION AND DISCUSSION OF THE MEDICAL AND PHARMACY EXPERIENCE REPORT THROUGH SEPTEMBER 2024 Oscar Diaz, CBIZ VP of Business Development, reported to the Trustees that after 35 years, he is retiring at the end of the month. He assured the Trustees that they would be in good hands with Sonya Martinez, CBIZ Account Executive, and Eric Rustand who will be taking over for Mr. Diaz. The Trustees congratulated Mr. Diaz on his retirement and thanked him for his service. Mr. Diaz presented the Medical and Pharmacy report for the first quarter of the 2024-2025 plan year. He prefaced by pointing out that it is too early for concrete data and that completion factors have a large impact on this month's report. The data will have more meaning five to six months into the plan year. He started by reviewing the paid claims and administration information for all plans combined. Mr. Diaz    12/03/2024 Minutes, Health Care Benefits Trust 1 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 amount paid for medical claims in the first quarter was $500,000. The amount paid for Rx claims was $165,000. The amount paid in September alone was $63,000, higher than the typical $50,000 per month. This was due to a large claimant. There have not been any stop loss recoveries thus far in the plan year. The total paid claims are $612,000 YTD; with the admin fees of $216,000 and HSA contributions of $77,000, the total claims and admin fees for the first quarter are $905,000. The loss ratio for expected claims is tracking at 77% and at 57% against maximum liability. The claims and admin fees per employee per month (PEPM) is at $960 for the first quarter. At the end of the first quarter, the plan is running at 82% against budget. Mr. Diaz continued to review the report and focused on the High Deductible Health Plan (HDHP). The total claims and admin fees for the first quarter are $448,000, tracking at 62% against expected liability and 50% of maximum liability. The claims and admin fees PEPM are $773. The HDHP is running at 69% of budget. For the PPO plan, the total claims and admin fees for the first quarter are $492,000. tracking at 106% of expected liability and 85% of maximum liability. This is due to a large amount of paid claims during the month of July. The claims and admin fees PEPM are $1,355. The PPO is running at 104% of budget. Mr. Diaz pointed out to the trustees that the enrollment in the HDHP continues to grow. As the Town goes through the renewal process, strategic discussions will take place regarding plan design. Next Mr. Diaz reviewed the year-over-year comparison. As a reminder, the plan year 2023/2024 finished at $3.4 million, 79% of expected liability and 83% of budget, which was $300,000 under budget. The projection shows that the plan is running at a 12% increase. Mr. Diaz told the trustees not to worry about that since it is so early in the plan year. The important number to watch is how the plan tracks against the budget which is currently at 87% of budget. Mr. Diaz finished by going over the large claims over $50k. CBIZ starts tracking at $50k because things can escalate fairly quickly, but stop loss does not go into effect until $150k. Currently there is only one large claimant that has not increased in the past month so is most likely a condition that is getting resolved. Ms. Martinez reviewed a new report that covers year-over-year financials. The report compares July-September of 2023 to July-September of 2024. The annual reports that Mr. Diaz reviewed projected an increase, but the report that Ms. Martinez reviewed revealed that the plan is actually doing 16% better at this point in 2024 than it was performing at this point in 2023.   3.PRESENTATION AND DISCUSSION OF THE FUND BALANCE REPORT THROUGH SEPTEMBER 2024 Vice Chair Gephart reviewed the fund balance report through the end of the first quarter. He compared the first quarter of the 2024-2025 plan year to the first quarter of the prior year. The plan is performing better in the current year. The cash balance in September 2024 increased $635,000 over where it was in September 2023. The fund balance is $700,000 higher this year than last year. Revenues are $98,000 greater than a year ago. Total expenditures are $99,000 less this year than last year. The total revenue over expenditures is $189,000 greater than a year ago. Mr. Gephart pointed out to the trustees that Rx rebates are included in the miscellaneous revenue line. Health clinic costs that are charged to the fund, which are a revenue for the health insurance fund but an expense of the Town fund, are also included in this line item. Mr. Gephart summarized by saying that when the first quarter of last year is compared with the first quarter of this year, the outlook is positive. The final quarter of the last plan year is what drove such positive financial results. There was lower claims activity, which translated to a better financial position with the reserves. Finally, Mr. Gephart reminded the trustees that some new wellness incentives were introduced this plan year. The Finance department did not receive any reporting on the first quarter until recently. Because of this, the $3,200 expenditure figure for wellness is understated. In reality, it is closer to $11,000.      ADJOURNMENT    Motion by Member Mark Parston, seconded by Chair Frank Trembulak to adjourn the meeting at 10:26 12/03/2024 Minutes, Health Care Benefits Trust 2  Motion by Member Mark Parston, seconded by Chair Frank Trembulak to adjourn the meeting at 10:26 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 _3rd_ day of _December_. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _6th__ day of _December_, 2024. ______________________________ Jen Inboden Senior Human Resources Analyst 12/03/2024 Minutes, Health Care Benefits Trust 3