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HomeMy WebLinkAbout2005-05-10-Work Session MinutesCITY OF WAUKEE EMPLOYEE BENEFITS REVIEW COMMITTEE MEETING May 10,2005 6:30PM Members Present:Mark Arentsen John Aunan Tim Royer Tony Oberman Linda Burkhart Lee Perkins-Guest Jeff Mertz-Guest Council members Nick Gruber,Darlene Stanton,and Jeff Mertz were present at the meeting because of an interest in the subjects being discussed.Nick Gruber was scheduled to be at this meeting.Darlene Stanton and Jeff Mertz felt it important to be present and were interested in the topics scheduled for discussion.This was not a planned meeting for the Council and there was insufficient time to post a notice. Troy Mapes Bill Synder Nick Gruber Mark Rorcheck Bill Daggett-Guest Darlene Stanton-Guest Meeting called to order at 6:36 P.M. Agenda Item 1:Consider recommendation to City Council on health insurance provider Discussion:City staff recommended to the Committee the City offer two concurrent health insurance policies:the current plan and the $1000 deductible plan.The $1000 deductible plan is an increase in deductibles and in co-payments for the employee; however,the City will reimburse the employees the difference between the current plan and the new plan for a maximum savings of$136,000 dollars,If the Union votes to join the new self-insured option,the City will drop the current plan in favor of the higher deductible plan to save on premium costs. City Administrator Mark Arentsen stressed there would be no cost difference to the employee.The employee would receive the EOB,send it to the third party administrator,and will receive payment from the TPA within approximately a week.It was suggest the TP A also take over the current self funded prescription plan the City offers to avoid conflicting with HIPP A regulations.Employees should see a faster return rate on prescription benefit checks due to the third party administrator processing claims on a weekly basis rather than the current twice a month system. Mark Arentsen suggested that a percentage of the savings could be paid out to employees to help ease transition costs to the new plan,however,the CWA representatives and Committee members agreed it would benefit employees more if that money was placed in a cost reserve to build up the self insurance fund.This would protect employees in case of a catastrophic disaster that would require large payouts. I Council Member Gruber discussed the need to build up the self insurance fund to protect employees and the City.The Committee agreed that this fund should be built as quickly as possible to build a safety net for employees.Linda Burkhart, Director of Finance,stated that other communities surveyed implied it took five or more years to stabilize their fund to meet insurance needs.The goal of the fund is to eventually lower premiums even more by accepting more risk. I Troy Mapes motioned to send the higher deductible insurance option to the Council with the understanding the savings would be placed back into the self insurance fund for a minimum of one year.Motion seconded by Bill Synder.Motion passed unanimously. Agenda Item 2:Consider compensation for employees taking less health insurance coverage than they would be eligible for Discussion:This issue has been previously discussed in other meetings.Linda Burkhart reported back research from other communities and their policy regarding compensation for employees not taking advantage of dual coverage.Urbandale is currently not debating the issue;West Des Moines realizes it is an issue,but is currently not discussing it.Ankeny is exploring options,and Clive is waiting to see what Waukee does in this case.Ifthe City chose to offer an incentive to employees to drop their extra insurance or to join their spouse's plan,it would currently affect approximately 14 employees.These employees are either double insured or could change to a spouse's plan.Bill Synder mentioned the State of Iowa currently has no formal program;the state views it as more of an expense due to the cost of rewarding those individuals who do not take any insurance.Bill . Daggett mentioned some discussion he has heard from employees regarding this issue:people tend to see an incentive payment as an additional form of compensation or salary instead of a benefit.Benefits are currently viewed on a "take it or leave it"basis,tlms feeding the mindset of employees being compensated more (if they receive the incentive)for the same amount of work. The Committee decided to table this issue at tills time to concentrate on the insurance plan change.They agreed to discuss this again after Union negotiations are underway. ] Agenda Item 3:Other issues Discussion:The Committee expressed concern regarding issues discussed at the first meeting beyond the initial issue of health insurance savings.Members expressed a desire to see the open communication continue to discuss other relevant topics.It was decided the Committee would continue to meet every two months to explore other benefit options. Meeting adjourned at 7:43 p.m. )Next meeting:Thursday,July 21,2005 at 6:30 p.m.@ Waukee City Hall Conference Room 2 Sara Mullen,Recording Secretary 2 JeffV. Attest: 3