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HomeMy WebLinkAbout2023 Employee Health Benefits Trust.FinalCity of Meridian Employee Benefits Plan Trust (COMEBPT) Bill Nary, Trust Chair May 23, 2023 BENEFITS 1 The Team The Trustees Bill Nary, Legal – Chair Alex Freitag, PW – Vice Chair Christena Barney, HR – Trustee Eli Daniel, IT – Trustee Justin Northway, MPD – Trustee Funding Sources City of Meridian Budget Employee Contributions Excess Revenue Partners A.J Gallagher – Cindy Tealey, Scott Howell, Tasha Norman Blue Cross of Idaho – Dan Malloy, Destiny Bradley Delta Dental of Idaho – Lanae Dorroh VSP – Sara Bolchi City Benefits Committee Christena Barney, Reba White, Debbie Hoopes – HR Todd Lavoie, Carol Mitchell, Trish Hibler – Finance Alex Freitag – PW Matt Ferronato, Justin Northway – MPD Eli Daniel – IT Renee White – Parks Vincent Koontz – Mayor’s Office Bill Nary – Legal 2 History Implementation Self-Funding Launch Date – January 1, 2020 Idaho Department of Insurance (DOI) Approval for Self-Funding 2020: January 2, 2020 for Medical 2021: October 26, 2020 for Dental and Vision Broker, Consultants, Legal Counsel, Accountant hired in 2020 CPA Auditor hired in 2021 to audit 2020 year and each year after Lessons Learned Future Continue to identify and implement plan designs that help reduce claims cost but also improve our member experience 3 Required Surplus In 2020 DOI required the Trust to have $1.3M in surplus to fund Medical In 2021 – Current, DOI requires the Trust to have $1.8M in surplus to fund Medical, Dental and Vision The next few slides will indicate whether the Trust had a deficit or gain in the surplus funding amount 4 Trust Contribution Rate Development 2020 Ended Year with a loss of surplus of $90,146 March 2020 Worldwide Pandemic began, industry uncertain of impacts to medical plans City Funded $130,000 to remain compliant with DOI Regulations Board of Trustees approved addition of MDLive Telehealth and Diabetes No-Copay Program 2021 Ended Year with a loss of surplus of $445,563 Self-funded Dental and Vision Worldwide Pandemic continued, vaccines and antigen tests widely available, costs still uncertain High Claims Year (3 Pre-Mature Babies, 2 High Cost Medications and 1 Cancer) City Funded $185,000 to remain compliant with DOI Regulations Board of Trustees approved addition of ChoiceDocs and Cost Advisor Tool for Medical, these are no cost to the Trust, but assist with plan savings 5 Trust Contribution Rate Development 2022 Ended Year with a gain of surplus of $146,130 Approximately $191,000 in additional costs associated with COVID-19 City Funded $254,000 to remain compliant with DOI Regulations Completed a dependent audit to ensure eligibility criteria was being met with all enrollees Board of Trustees approved addition of Coupon Maximizer and Mail Order Prescription Co-Pay for Medical and ‘HOW’ (Health through Oral Wellness) Program for Delta Dental 2023 YTD a gain of $Q1 DOI Statement – To Update Board of Trustees approved addition of SmartShopper for Medical 6 Contributions Paid vs Claims Paid 7 Trust Contribution Rate Development for Medical 2020 increase was 1.2% 2021 increase was 6.97% 2022 increase was 6.8% 2023 increase was 7.9% 2024 increase anticipated 2.1% (still pending actuarial review, certification and DOI acceptance) 8 Thank you! City of Meridian Employee Benefits Plan Trust 9