HomeMy WebLinkAbout08-09-2011 Regular MeetingCommittee:
Date & Time:
Place:
Subject:
Public Meeting Notice
Health Insurance Sub-Committee
Tuesday, August 9, 2011 at 9:00 a.m.
Delchamps Room
161 North Section Street
Research Self-Insurance for the
City of Fairhope
Notice must be stamped, dated and initialed before posted on
bulletin board.
TD
6-J -/I
DATE
(/fo;l[Jj;_ a OntzoaAtU(}J
SIGNATURE
STA TE OF ALABAMA )(
COUNTY OF BALDWIN )(
The Financial Advi sory Su b-Comm ittee on Self-Insured
met at 9:00 a.m., City Hall, Delchamps Room , 16 1 North Section St reet,
Fairhope , A labama 36532, on Tu es da y , 9 August 20 11 .
Present were:
Members: Chuck Zunk, John Brown , Debbi e Quinn , Mike Fo rd (Arrived a t 9: 15 a.m.),
an d Nancy Wilson .
Gregg Mims, Lisa Hanks, and Rose Fogarty were a lso prese nt.
Ci ty Treasurer Nancy Wi lso n introduced Frank Weber who explained in detai l the
differences between partiall y being in sured and remain in g w ith Blu e Cross Blu e Shield ;
(See attached handouts from Weber). If th e City goes to partiall y insured thi s wi ll not
change anything in the plan ; it is a mirror image of thi s year's plan . There wi ll be a
$5 0 ,000 cap and then the stop lo ss polic y wo uld begin. The company has 18 stop lo ss
co mpanies to search for a policy and all of these co mpanie s kn ow Blue Cross Blue
Shield. Reimbursement usually takes a week, but co uld take up to a maximum of thr ee
weeks. He said the co mpan y representatives would m ake appearances w ith our
employees to discu ss being pro ac ti ve with healthcare costs .
There being no further bu s in ess to come before th e Financial Adv isory S ub -
C ommittee on Sel f-Insured , the meeting was duly adjourn ed at 10:30 a .m.
C hu ck Zunk, Chai
City of Fairhope
Paid Claims Report
2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011
Pa id Claims Paid Claims Pa id Claims Paid Claims
October $174 ,168.15 $145 ,623 .52 $55 ,279.37 $179 ,213.88
November $245 ,682.84 $253,219.16 $267 ,331.60 $192,064.22
December $181 ,750.40 $62 ,826.10 $258 ,807 .19 $225 ,357 .38
January $141 ,188.05 $200,499 .26 $183,618.62 $150,168.75
February $211 ,807.48 $226 ,208 .24 $164 ,785 .59 $120 ,321.45
March $143 ,679.44 $459 ,493 .18 $134,457.25 $410 ,178.04
April $219 ,899.03 $61 ,779 .06 $206 ,852 .75 $234 ,902 .94
May $135,544.43 $205,067.44 $296,216.82 $144,030 .61
June $249 ,734.34 $316 ,005.23 $153 ,658 .52 $207 ,124.67
July $116 ,313.46 $454 ,669.33 $183 ,157.36
August $167 ,948.76 $201 ,382 .11 $236 ,673 .61
September $40 ,707.47 $137 ,028.63 $228 ,059.84
Total $2 ,028,423.85 $2,723,801.26 $2,368 ,898.52 $1,863 ,361.94
Large Claims over $SOK $214 ,574 .00 $572 ,182 .00 $377 ,327 .00 $365 ,461 .00
2 claims 5 cla ims 6 claims 5 claims
Average Enrollment 274 279 266 277
Actual Actual Actual Actual
Monthly Average minus $151 ,154.15 $179 ,301 .61 $165 ,964 .29 $166,433.44 large claims
Average Cla im Per $551.66 $642.66 $623.93 $600 .84 Month / Per EE
Blue Cross Rates 2007 / 2008 2008 / 2009 2009 / 2010 2010 / 2011
Employee $366 .94 $366 .94 $354 .94 $378 .94
Family $922.81 $922.81 $892.81 $952.81
City of Fairhope
Self-Funded v Fully Insured Rate Comparisons at
$50,000
Stop Loss Premium
Single
Family
Aggregate Factors
Single
Family
Administration @ 10%
Aggregate Premium
Total Premium
Single -
Family -
Monthly Premium
Annual Premium
Max Premium
54
224
Expected Difference
Renewal
Fully Insured
$378 .94
$952.81
$378 .94
$952 .81
$233,892 .20
$2 ,806,706.40
$3,143,511 .17
Sun Life
Self Insured
Net Expected
@$SOK
$70 .07
$149 .39
$279 .91
$672 .69
$42 .00
$6.42
$398.40
$870 .50
$216 ,505.60
$2 ,598 ,067 .20
$208,639.20
OCCIDENTAL
13ENEP ITS INC. City of Fairhope
l\!l'lllHI l \!'.\:1111 \l\\;\L,l\11'-I Self-Funded Administration Cost Analysis
. . . . . . . . . . . . ........... . . . . . . . . . . . . . . . . . . . . . . . ............ ..................
•••• Carr1er-
············ ..... ················ ................. ················· ... ·············· ... ·············· ·················
Specific Stop Loss Deductible
Contract Type
Specific Premium
54 Single
224 Family
278 Composite
Monthly Specific Premium
Annual Specific Premium
•· ............ . . . . . . . . . . . . . . ........ ..... . ........ ... . . . . . . . . . . . . . . . . ........ .... . . . . . . . . . . . . . . ....... .... . . . . . . . . . . . . . . ............ . ............. . ....... .... . . . . ....... ... .
·.·.·.•-·.·.·.·.·.·.·.·.·.·.·.
Aggregate Premium Per Employee per Month
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • t> tuni
$50,000
12/12
$61.25
$153.20
$37,624 .30
$451,491.60
$6.25
ace
$50,000
12/12
$67 .74
$164.47
$40,499.24
$485 ,990.88
$5.62
. . . . . . . . . . ......... . ........ . . ....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... . ........ . . . . . . . . . . s• ili~,t~
$50,000
12/12
$79 .26
$159.68
$40,048.36
$480,580.32
$6.12
.......... :-:-:-:-:--:-:-:-:-: . ........ . . ........ . . ........ . . ........ . . ........ . ·.·.·.·.· .. ·.·.·.·.· . ........ . .......... •sun tire
$50,000
12/12
$70.07
$149.39
$37,247.14
$446,965 .68
$6.42
278 Annual Aggregate Premium $20 ,850.00 $18 ,748.32 $20,416.32 $21 ,417 .12
. ........ . ............................... .
Ai • ....................... J'6tal.A~n~al~~e~ ¢.~~t~ ··•··:::::?/•::•:· ·········•·······•••···•···•···••·••···••·· ·······•••·•• $47:2~3 41;~•••• ·•·•••·••· ·•·•·•·•·•·•· $504~~9;2~••• ••·····•··· ··•··•··•·· $soo;99~;li4 •··•·• •••••• •···•••··••$461J;~8Z.;$0 •
Aggregate Factors (Includes)
Contract Type 12/12 12/12
54 Single $364 .00 $350.49
224 Family $863 .20 $830 .94
B. Est . Aggregate Attachment Point (125 % ) $2 ,556,153.60 $2,460,684.24
C. Expected Claims (100%) $2 ,044,922.88 $1,968 ,547.39
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................ .
···············••:••······•·•·· t~(atAnnuati:i~d Maximum cosis •<A+s)•••· •••· s1;9~sA2~;44
••••• }2;41J;:i86is~••••••••••• ...................
Note : Rates are rounded to the third decimal place and all other figures to the second decimal place. This accounts for any small discrepancy in cost calculations.
Actual rates and contract provisions will be determined by the specific carrier after completion of underwriting .
12/12 12/12
$351.30 $349.89
$843 .02 $840 .86
$2,493,680 .16 $2,486,960.40
$1,994,944 .13 $1,989,568.32
.......................
•••••$~;9.ss;343)-0 ••••••••••
. . . . $1 ;45Ji>5Lt2 > . .................... .