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Home My WebLink About04-01-02 (Workshop) WORKSHOP PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE, INDIANA AVRIL 1, 2001~ The Common Council of the City of Jeffersonville, Indiana met in workshop sessio: t in the Multi-Purpose Meeting Room in the City-County Building, Jeffersonville, Indiana at .:30 P.M. onthe 1st day of April 2002. Councilpersons presem were: Ron Ellis, Denny Frantz, Barbara Wilson, Ron Gro, ms, and Vicki Conlin. Also present were Clerk Treasurer Peggy Wilder, and Deputy Clerk Bar] ~ara Hollis. ~ Council President Frantz stated the subject of the workshop is health insur ce, introducing Ms. Barbara Swank-Gallegos, Culpepper Group Vice President of Operations and Mr. Joe Cavalo, Sagamore Account Representative. Ms. Swank-Gallegos presented a packet of information to each Councilperson, revk and explaining the contents. She explained that Stewart Miller is the th/rd party administr. Sagamore is the network, and Un/on Life does the reassurance. These are the same as previous year. The contract has been renewed, however the Council can change the stop. ceiling. Ms. Swank-Gallegos and Mr. Cavalo answered questions. Councilperson Waiz arrived at 7:10 P.M. Conncilperson Merkley arrived at 7:25 P.M. The stop-loss decision can wait two weeks. The Council will review the packet and another workshop. DENN~ FRITZ, (~OU~C-~IL PRESIDENT ATTEST: PEGG'~:~LDER, CLERK AND TREASURER ring ~or, the loss call GROUP 301WestMainStreet Muncie, IN47305-1630 (765) 287-0128 · (800) 865-8496 FAX(765) 287-0182 HEALTH INsuRANCE RENEWAL Prepared for CITY OF JEFFERSONVILLE Presented by CULPEPPER GROUP, Inc. Renewal Effective April 1, 2002 MAIN OFFICE 411West Hwy. 131 ClarksvflIe, IN47129 (812) 945-0122 · (800) 292-4619 Fax (812) 945-0109 9000Wessex Place, Loubville, KY~ (502) 584-61 Suite 203 0222 41 CONTENTS Page 1, 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Definitions Renewal Options Aggregate Claims Report/Stewart Miller Run-Off Claims Paid by Humana Cost Summary Last Year's Renewal with Current Enrollment Costs Last Year's Renewal with Last Year's Enrollment Costs Attachments -All Reinsurance quotes from Stewart C. Miller DEFINITIONS Specific Stop-Loss Coverage: The amount of employer liability exceedin the employees' deductible and co-insurance, up to a maximum annual amoL nt for each employee. This specific stop-loss limit protects the group from catastrophic expense due to an individual employee or dependent. When th employer has met the specific stop-loss maximum for an employee, the insurance company pays all eligible expenses above that amount for the remainder of the benefit period. City of Jeffersonville: $75,000 Specific Deductible in Plan Year ending March 31, 2002. Aggregate Stop-Loss Coverage: Protects the employer from catastrophic expense by limiting the employer's liability to a maximum annual dollar outla for all employees combined. The aggregate stop-loss threshold is usually 1 percent of expected claims for the contract period. City of Jeffersonville: Aggregate Coverage is 125% of Expected Claims. Stop-Loss Claim Basis Options: 12~12---Incurred in ~2 and paid in 12---The specific and aggregate stop- losses are in effect for claims incurred and paid within the 12-month policy period. The employer assumes total liability for claims processed after the nd of the 12-month stop-loss claim basis pedod. 12/fS---Incurredin ~2 andpaidin ~5--- The specific and aggregate stop- losses are in effect for claims incurred and paid within the 12-month policy period, plus three months immediately following the policy period. The employer assumes total liability for claims processed after the end of the 15- month stop-loss claim basis period. ¢ 5/12---Incurred in ~ 5 and paid in ~ 2 ---The specific and aggregate stop- losses are in effect for claims incurred and paid within the 12-month policy period, plus three months immediately preceding the policy period. The employer assumes total liability for claims processed after the end of the 15- month stop-loss claim basis peridd. Other options: ¢8/12---Incurred in ~8 and paid in ¢2--lncludes claims incurred six month~. prior to the policy pedod. City of Jeffersonville: Expiring Contract is an 18/12. Renewal contract, effective Apdl ~, 2002 will be PAID. 24/12--Incurred in 24 and paid in 12--- Includes claims incurred twelve months pdor to the policy period. PAID Contract--Stop-loss coverage incurred any time prior to poficy period and paid in the 12 month-po/icy period. City of Jeffersonville: Renewal Contract effective April ~, 2002, will be PAID contract. Al, claims incurred any time pdor to Apdl 1,. 2002, and paid pdor to Apdl 1, 2003 will be cove ~/nrt~r th~ .~tnn tn.~.~ r~nfr.~r~ 'ed CITY OF JEFFERSONVILLE RENEWAL: Plan Year April 1, 2002 thru March 31, 2003 Th/r8 Party Admin. Stewart C. Mille~ Stewart C. Miller & Co. Reinsurance Carrier: Thru 3/31/02 Renewal Standard Security ULLICO Alt. I ULLICO Alt. 2 UL~.ICO Alt 3 PPO Network Sagamore Sagamore Sagamore Sagamore Sagamore agamore Specific Deductible $75,000 $75,000 $75,000 $80,000 $90,000 00,000 Contract Basis 18/12 PAID 15/12 PAID PAID PAID FIXED COSTS #ER ULLICO/$75000 Renewal/575,000 Stand. Sec.$75,000 ULLICO/$80,000 ULLICO/$90,000 ULLI(~O/$100,00(3 Specific Premium/Single 88 $14.91 $I9.52 $29.19 $18.29 $16.04 $14.22 Specific Prem/Family '/6'/ $37.28 $48.80 $70.51 $45.74 $40.10 $35.55 249 Aggregate Prem./Single $3.57 $3.57 $7.24 $3.57 $3.57 $3.57 Aggregate Prem./Family $9.99 $9.99 $7.24 $9.99 $9.99 $9.99 Total Premium/Month $9,236.71 $1'~,497.11 $15,723.59 $10,896.21 $9,790.17 $8,897.46 Annual Stop/Loss Premium $110,840.52 $137,965.32 $188,683.08 $130,754.52 $117,482.04 S 106,769.52 Administrative Services 88 $22.95 $23.01 $23.01 $23.01 $23.01 $23.01 Monthly Admin 249 $5,714.55 $5,729.49 $5,729.49 $5,729.49 $5,729.49 $5,729.49 Annual Administration Fees $68,574.60 $68,753.88 $68,753.88 $68,753.88 $68,753.88 68,753.88 Fixed Costs per Employee 88 $41.43 $46.10 $59.44 $44.87 $42.62 $40.80 16_2_/ $70.22 $81.80 $100.76 $78.74 $73.10 $68.55 Monthly Fixed Costs 249 $14,951.26 $17,226.60 $21,453.08 $16,625.70 $15,519.66 14,626.95 Annual Fixed Costs $179,415.12 $206,719.20 $257,436.96 $199,508.40 $186,235.92 $' 75,523.40 Increase/(Decrease) overCurrent $27,304.08 $78,021.84 $20,093.28 $6,820.80 ($3,891.72) % Difference over Current I 15.2% 43.5% I1.2% 3.8% / -2.2% Increase/(Decrease) overRenewa/ Renewal $50,717.76 ($7,210.80) ($20,483.28) ($?1,,195.80) CLAIMS COSTS S.Miller/$75,000 Renewal/S75,000 StandSec.$75,000 ULLICO/$80,000 ULLICO/$90,000 ULLI~O/$100,000 Annual Expected Claims $1,363,568.35 $1,720,548.19 $1,721,088.00 $1,725,979.30 $1,736,120.45 $1,7~4,137.79 Attachment Pt/Employee 88 $263.63 $332.65 $720.00 $333.70 $335.66 $337.21 Attachment Pt/Family 16'/ $738.13 $931.37 $720.00 $934.31 $939.80 $944.14 249 $142,038.37 $179,223.77 $179,280.00 $179,789.51 $180,845.88 $'81,681.02 Max Annual Claims Liability $1,704,460.44 $2,150,685.24 $2,151,360.00 $2,157,474.12 $2,170,150.56 $2,'80,172.24 Increase/(Decrease) over Current $445,224.80 $446,899.55 $453,013.88 $465,690.12 $4 75, 71 f . 80 % Difference over Current I 28.2% 26.2% 25.6% 27.3% 27.9% fncrease/(Decrease) overRenewal Renewal $674.76 $6,788.88 $19,465.32 $£9,487.00 TOTAL MAXIMUM COSTS S.Miller/$7$,000 Renewal w/ $75,000 Stand. Sec./S75000 ULLICO/$80,000 ULLICO/$90,000 ULLIqO/$100,000 (Fixed Costs + Max. C/a/ms) Maximum Liability/Year $1,883,875.56 $2,357,404.44 $2,408,796.96 $2,356,982.52 $2,356,386.48 $2,~ 55,695.64 Increase/(Decrease) over Current $473,528.88 $524,92,1.40 $473,106.96 $472,510.92 $47,1,820.08 % Difference over Current I 25.1% 27.9% 25. f% 25.'I% 25.0% /ncrease/(Decrease) over Renewal Renewal $51,392.52 ($421.92) ($1,017.96) f~'1,708.80) I Informational Rates Current Renewal w/$75,000 Stand. Sec./S75000 ULLICO/$80,000 ULLICO/$90,000 ULLI(~O/$100,000 Employee Only $305.06 $378.75 $779.44 $378.57 $378.28 $378.01 Family $808.35 $1,013.17 $820.76 $1,013.05 $1,012.90 $1,012.69 NOTES: Totals are based on Actual Average Monthly Enrollment for Current Plan Year. TotaIs may vary with fluctuations in enrollment. All proposals Match Current Benefits Other Reinsurance proposals received from: AUL and American National were not competitive. CITY OF JEFFERSONVILLE - HUMANA CLAIMS PAID FROM APRIL 1, 2001 TO CURRENT Run-Off Claims Paid by Humana MONTH Rx CLAIMS MEDICAL CLAIMS ADJUSTMENTS Apr-01 $4,363.03 $3,807.81 -$1,453.29 May-02 -$46.07 $0.00 -$40,847.50 Jun~01 $280.68 $46,698.10 -$3,034.53 Jul-01 $0.00 $11,580.36 -$6,026.98 Aug-01 $0.00 $3,741.64 -$1,425.50 Sep-01 $0.00 $4,583.36 -$1,837.20 Oct-01 $0.00 $7,425.99 -$6,300.65 Nov-01 $0.00 $39,767.47 -$20,618.70 Dec-01 $0.00 $1,982.11 -$23,317.18 Jan-02 $0.00 $742.51 -$258.99 Feb-02 $0.00 $130.38 $311.65 Mar-02 Totals $4,597.64 $120,459.73 -$104,808.87 Total All Claims/Adj. $20,248.50 CITY OF JEFFERSONVILLE EMPLOYEE HEALTH INSURANCE SUMMARY Prepared by Culpepper Group Costs Summary Comparison Third Party Administrator: Plan Year: Humana Renewal Stewart Miller 4/1/01 SteWart Miller Effect. 4/1/2001 Renewal 4/1/02 Specific Deductible $50,000 $75,000 $75,000 Costs are based on Average Monthly Enrollment of Current Plan Year: 88 Single; 161 Family Fixed Costs A. Attachment Pt.(MaxClaims) B, Maximum Costs C. (A+B) $354,466.32 $1,66Q,014.72 $2,014,481.04 $179,415.12 $1,704,460.44 $t ,883,875.56 $206,719.20 $2,150,685.24 $2,357,404.44 f27/02 Stewart Miller Renewal 4tl/02 $ 70,000 $186 235.92 $2,170 150.56 $2,3561386.48 PAID EXCESS REIMBURSEMENTS SUMMARY CLAIMS PAID Run-Off Claims Pd by Humana thru Jan.02 Paid Claims by Stewart Miller thru Feb.02 Claims Pending Invoice 3/11/02 3/18/02 3/25/02 Gross Paid Claims Less Specific Excess Claims Covered under Aggregate Estimated Attachment Point thru March Est. Loss Ratio Est. Aggregate ReimbursemeJ Total Est. Specific& Aggregate Reimb. G. (D+E+F) H. /. (~-H) J. I/J K. (I-J) L. (H+K) Specific Rembursments Received to date Total Specific Rec'd Specific Pending Total Est. Reimb. Pending O. (K+N) $20,459.50 $1,483,030.59 $125,604.02 $13,606.50 $42,408.78 $181,619.30 $1,685,109.39 $1,597,144.92 $1,472,646.64 108% $87,964.47 $124.498.28 $212,462.75 $49,254.14 $7,243.65 $12,139.10 $68,636.89 $19,327.58 $143,825.86 CITY OF JEFFERSONVILLE All Proposals Match Current Benefits Plan Year April 1, 2001 thru March 31, 2002 TOTALS WITH ACTUAL AVER. ENROLLMENT for Plan Year Third Party Admin. Humana Humana Stewart C. Miller & Co. Plan Yr Ending $/3110t Renewal Effective Apd 1,2001 PPO Network Humana Humana Sagamore Specific Deductible $45,000 $50,000 75,000 Contract Basis PAID PAID 18/12 Specific Premium/Single $15.76 $30.84 $14.91 Specific Prem./Family $47.29 $92.54 $37.28 Aggregate Prem./Single Aggregate Prem./Family Total Premium/Month Annual Stop/Loss Premium Administrative Services Monmly Aamm Annual Administration Fees Fixed Costs per Employee Monthly Fixed Costs Annual Fixed Costs ~E_E 88 88 $1.98 $5.49 $to,o58.7o $120,704.40 $32.67 $38.12 Su,u12.28 $108,147.361 $50.41 $90.90 $19,070.98 $228,851.761 $2.46 $6.83 $18,928.97 $227,147.64 $42.61 $127,318.68 I Increase/(Decrease) over Current % Difference over Current 54. 9% Increase/(Decrease) over Renewal CLAIMS COSTS Humana Current Renewal/S50,000 $3.57 $9.99 Attachment Pt/Employee 88 Attachment Pt/Family 16~1 249 Max Annual Claims [ncrease/(Decrease) over Current % Difference over Current increase/(Decrease) over Renewal $182.56 $511.15 $98,360.43 $1,180,325.16 $9,236.71 $110,840.52 $22.95 $68,574.60 $75.91 $41.43 $141.98 $70,22 $29,538.86 $14,951.26 $354,466.32 I $179,415.12 $~2~614.56 $256.76 $718.88 $138,334.56 $1,660,014.72 $479,689.56 40.6% ($49, 436. 64) -21.6% ($175,051.20) $.Miller/$75,000 $263.63 $738.13 $142~038.37 $1,704,460.44 $524,~35.28 44.4% $44,445.72 TOTAL MAXIMUM COSTS (Fixed Costs + Max. Claims) Maximum Liability/Year % Difference over Current Increase/(Decrease) over Renewal Humana Current $1,409,176.92 Humanal/$50,000 $2,014,481.04 $C,05,304.12 43. 0% S.flilled$?5,000 $1,883,875.56 33. 7% ($ ~ 30, 605. 48) Renewal/$50,O00 I N/A $412,000 Other Costs/Services Humana Current S.Millerl$?$,000 Run-in Limit CITY OF JEFFE:RSONVlLLE Alt Proposals Match Current Benefits Plan Year April 1, 2001 thru March 31, 2002 Totals based on Enrollment at last year's renewal Third Party Admin. Humana Humana Stewart C. Miller & Co. Plan Yr Ending 3/3t/0t Renewal Effective Apd 1,2001 PPO Network Humana Humana Sagamore Specific Deductible $45,000 $50,000 75.000 Contract Basis PAiD PAiD 18/12 Specific Premium/Single 94 Specific Prem,tFamily 156 Aggregate Prem./Single Aggregate Prem./Family Total Premium/Month Annual Stop/Loss Premium Administrative Services 94 $15.76 $47.29 $1.98 $5.49 $9,901.24 $118,814.88 $32.67 $38.12 $9,0i7.70 Annual Administration Fees Fixed Costs per Employee Monthly Fixed Costs Annual Fixed Costs incraeea/(Decrease) over Current % Difference over Currant tncrsese/(Decreese) over Renewal 94 25O $108,212.40 $50.41 $9O.90 $18,918.94 $227,027.28 $30.84 $92.54 $2.46 $6.83 $18,631.92 $223,583.04 $42.61 $i0,652.50 $127,830.00 $75.91 $141.98 $29,284.42 $351,413.04 $~24,385.76 54.8% $14.91 $37.28 $3.57 $9.99 $9,111.24 $109,334.88 $22.95 $68,850.00 $41.43 $70.22 $13,114.79 $157,377.44 ($69, 649. 84) -30. 7% ($'194, 035. 6O) CLAIMS COSTS Humana Current RenewaL/$50,0CO S.Miller/$75,000 Attachment Pt/Employee 94 Attachment PtJFamily 15__~6 25O $182,56 $511.15 $96,900.04 $1,162,800.48 $256.76 $718.88 $136,280.72 $1,635,368.64 Max Annual Claims Increase/(Decraase) over Current % Difference over Current /ncreeea/(Decrease) over Renewal $472,568.16 40. 6% $263.63 $738.13 $139,929.50 $1,679,154.00 $51~353.52 44.4% $43,785,36 TOTAL MAXIMUM COSTS (Rxed Costs + Max, Claims) Maximum Liability/Year % Difference over Current Increase/(Decraaea) ever Renewal $1,389,827.76 Humanal/$50,c00 $1,986,781.68 $59~953.92 43.0% S.Millerl$75,000 $1,836,531.44 32,1% ($150,250.24) Other Costs/Services Humana Current Renewall$50,0(30 S.Miller/$T5,000 Run-in Limit N/A $412,000 8