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Home My WebLink About07-26-2010 Regular Meeting• Public Meeting Notice Committee: Fairhope Financial Advisory Committee Date & Time: Monday, July 26, 2010 at 4:45 p.m. Place: Delchamps Room 161 North Section Street Subject: See Posted Agenda Notice must be stamped, dated and initialed before posted on bulletin board. POSTED 1----1 tJ -/t) • City of Fairhope Financial Advisory Committee Agenda -Monday, July 26, 2010 4:45 p.m. in the Delchamps Room City Hall -161 N. Section St., Fairhope, AL 1. Approval of Minutes for June 28, 2010 2. Status of RFP for health insurance bid 3. Review of cost reduction projects, as follow-up from May 17 City Council Workshop 4 . Stan Grubin -Report on FY2011 Budget and Capital Planning processes 5. Airport refinancing request Schedule Of Future Meetings {Note: Regular meetings are on the 4th Monday of each month at 4:45 p.m. in the Delchamps Room at City Hall, 161 N. Section St., Fairhope, AL.) • Next regular meeting: Monday, August 23 , 2010 • STATE OF ALABAMA )( COUNTY OF BALDWIN )( The Financial Advisory Committee met at 4:45 p.m., City Hall, Delchamps Room, 161 North Section Street, Fairhope, Alabama 36532, on Monday, 26 July 2010. Present were: Chuck Zunk, Chairman Members: Stan Grubin, Mac Mccawley, Marvin Wilder, John Brown, and Mayor Kant. Ex-Officio Members : Debbie Quinn, Dan Stankoski, Lonnie Mixon, Mike Ford, and Rick Kingrea. Dick Kwapil was absent. Chuck Zunk called the meeting to order at 4:45 p.m. He announced that the first item is to approve the minutes from the June 28, 2010 Financial Advisory Committee meeting. Marvin Wilder moved to approve the minutes from the June 28, 2010 Fairhope Financial Advisory Committee meeting. Seconded by Mac McCawley, motion passed unanimously by voice vote. The next item on the agenda was the status of RFP for health insurance bid. City Treasurer Nancy Wilson explained the proposals from United Healthcare, Local Government Health Benefit Plan, and Blue Cross Blue Shield. She stated the network is limited under United Healthcare. She handed out a copy of the proposals, a survey employee healthcare in Alabama Towns and Cities, and a comparison of the new healthcare reform. Ms. Wilson also mentioned we are grandfathered in with BCBS with the 88% and ifwe get out of this plan, we cannot get back in . The review of cost reduction projects, as follow-up from the May 17, 2010 City Council Work Session and the report on FY2011 Budget and Capital Planning process were discussed next by Stan Grubin. He will meet with the Mayor to present the budget prior to going to the City Council. The budget will be discussed at next month's FAC meeting. Chuck Zunk explained the Airport refinancing that the Fairhope Airport Authority is seeking for the 2007 Bond Issue due to the credit worthiness of the Allied Irish Bank. The refinancing will be a 10 year bank loan. The bonds will be recalled and new bonds issued. Financial Advisory Committee Monday, 26 July 2010 Page-2- Stan Grubin moved to adjourn the meeting. Seconded by John Brown, motion passed unanimously by voice vote. There being no further business to come before the Financial Advisory Committee, the meeting was duly adjourned at 5:15 p .m. Chuck Zunk, Chairman CITY OF FAIRHOPE ' PROPOSALS FOR EMPLOYEE HEALTH AND DENTAL INSURANCE EMPLOYEE PREMIUM FAMILY PREMIUM RETIREE SINGLE COV. PREMIUM RETIREE AND DEPENDENTS PREMIUM IN NETWORK MEDICAL DEDUCTIBLE OUT OF NETWORK MEDICAL DEDUCTIBLE IN NETWORK PHYSICIAN CO-PAY MT. OF BASIC COST COVERED BY PLAN 0/5 NETWORK PHYSICIAN CO -PAY NETWORK OUTPATIENT HOSPITAL CO -PAY 0/5 NETWORK: HOSPITAL CO-PAY OPTION 1 $434 .50 $1 ,094 .95 $434 .50 $1 ,094 .95 $500 Single, up to $1 ,000/farnily up to $1,500/$3,000 out of pocket expenses $1 ,000/Single , up to $2 ,000/farnily up to $5,000/$10,000 out of pocket expenses $30 .00 80% In Network, 60% o/s Network all subj. to Deductible except Preventive care Paid @ 60%, after Medical Deductible Paid @ 60%, after Medical Deductible Paid @ 60%, after Medical Deductible UNITEDHEAL THCARE (3 Options Submitted by Murfee Meadows, Inc., Broker) and by Barnes Insurance & Financial Services, Broker OPTION 2 Option 3 $426 .39 $371 .17 $1 ,074 .50 $935.36 $426 .39 $371 .17 $1 ,074 .50 $935 .36 $1 ,500 Single , up $1 ,500 Single , up to $3 ,000/farnily to $3 ,000/farnily up to $1,500/$3,000 out up to $2,500/$5,000 out of pocket expenses of pocket expenses $4 ,000/Single , up to $3 ,500/Single , up to $8 ,000/farnily $7,000/farnily up to $8,000/$16,000 up to $4,500/$9 ,000 out pocket expenses of pocket expenses None None 100% In Network, 100% In Network, 80% o/s Network 80% o/s Network all subj. to Deductible all subj. to Deductible except Preventive care except Preventive care Paid @ 80%, after Paid @ 80%, after Medical Deductible Medical Deductible Paid @ 80%, after Paid @ 80%, after Medical Deductible Medical Deductible Paid @ 80%, after Paid @ 80%, after Medical Deductible Medical Deductible NETWORK: IN-PATIENT HOSPITAL CO-PAY none-subject to Ded . None -subj .to Ded. None -Subj . to Ded . PRESCRIPTION COPAYS $10,$30,$60 $10 ,$30 ,$60 $10 ,$35 ,$60 ANNUAL DENTAL DEDUCTIBLE $50/$150 $50/$150 $50/$150 (0 for Preventive) (0 for Preventive) (0 for Preventive) DENTAL CO-PAY Pays 80% for Diag . & Pays 80% for Diag. & Pays 80% for Diag . & Basis services Basis services Basis services EMPLOYEE DENTAL PREMIUM $15 .10 $15 .10 $15 .10 FAMILY DENTAL PREMIUM $37 .75 $37 .75 $37.75 ANNUAL MAXIMUM DENTAL BENEFIT $500.00 $500.00 $500 .00 SPECIAL TERMS 1-rates include comm. 1-rates include comm. 1-rates include comm. of 5% for health/ of 5% for health/ of 5% for health/ 10% for dental 10% for dental 10% for dental 2-rates subject to chng 2-rates subject to chng 2-rates subject to chng to conform with Hlth to conform with Hlth to conform with Hlth Reform Act of 2010 Reform Act of 2010 Reform Act of 2010 CITY OF FAIRHOPE PROPOSALS FOR EMPLOYEE HEAL TH AND DENT AL INSURANCE EMPLOYEE PREMIUM FAMILY PREMIUM RETIREE SINGLE COV. PREMIUM RETIREE AND DEPENDENTS PREMIUM IN NETWORK MEDICAL DEDUCTIBLE OUT OF NETWORK MEDICAL DEDUCTIBLE IN NETWORK PHYSICIAN CO-PAY AMT. OF BASIC COST COVERED BY PLAN O/S NETWORK PHYSICIAN CO -PAY NETWORK OUTPATIENT HOSPITAL CO-PAY O/S NETWORK: HOSPITAL CO -PAY --------------------- LOCALGOV'T HEAL TH BENEFIT PLAN (Under State Emp. Ins. Board-Claims Adminstd . by BCBS) $382 .00 $964.00 $715.00 $1 ,349.00 $200 .00 $200.00 $30 .00 100% in network/SO% of negol rate o/s of network Paid @ 80%, subject to $200 Med. Deductible $100 .00 services not covered NETWORK: IN-PATIENT HOSPITAL CO-PAY PRESCRIPTION COPAYS ANNUAL DENTAL DEDUCTIBLE DENTAL CO-PAY EMPLOYEE DENTAL PREMIUM FAMILY DENTAL PREMIUM ANNUAL MAXIMUM DENTAL BENEFIT SPECIAL TERMS $50/DAY not given $25.00 50% of Dental Fee per Schedule $18 .00 $44.00 $1,500/MEMBER 1-current rates will chng mid-Sept,2010; 2-rates subject to addl chng to conform with Hlth Reform Act of 2010 3-Withdrawal from Plan avail'bl only after 6 mos. notice.with pmt. of all claims incurred prior to date of w/d; 3-yr wtg. period before entering BCBS-adminstd. health plan; 4-$50/member NR application fee CITY OF FAIRHOPE PROPOSALS FOR EMPLOYEE HEALTH AND DENTAL INSURANCE EMPLOYEE PREMIUM FAMILY PREM IUM RETIREE SINGLE COV. PREMIUM RETIREE AND DEPENDENTS PREMIUM IN NETWORK MEDICAL DEDUCTIBLE OUT OF NETWORK MEDICAL DEDUCTIBLE IN NETWORK PHYS ICIAN CO-PAY AMT. OF BAS IC COST COVERED BY PLAN O/S NETWORK PHYSICIAN CO-PAY NETWORK OUTPATIENT HOSPITAL CO-PAY O/S N.ETWORK: HOSPITAL CO-PAY BLUECROSS BLUESHIELD OF ALABAMA Submitted by BlueCross Blue Shield of Alabama at 88% Deposit Rate at 100% Deposit Rate $378 .94 $434 .94 $952 .81 $1 ,092 .81 $378 .94 $434.94 $952.94 $1 ,092 .81 $200.00 $200.00 $400.00 $400.00 $35.00 $35.00 100% in Network, 100% in Network, 80% o/s Network, 80% o/s Network, subject to Ded. subject to Ded . Paid @ 80%, after Paid @ 80%, after Medical Deductible Medical Deductible Paid@ 100%, after Paid @ 100%, after co-pay for basic, after co-pay for basic, after Deductible for others Deductible for others Paid @ 80%, after Paid @ 80%, after $400 Admiss. Ded. $400 Admiss. Ded . for acc.inj.only for acc.inj.only NETWORK: IN-PATIENT HOSPITAL CO-PAY PRESCRIPTION COPAYS ANNUAL DENTAL DEDUCTIBLE DENTAL CO-PAY EMPLOYEE DENTAL PREMIUM FAMILY DENTAL PREMIUM ANNUAL MAXIMUM DENTAL BENEFIT SPECIAL TERMS None -subj.to $200 Ded. $10/$40/60 $50/$150 Pays 80%for Preventive & Basic No Deductible $16 .00 $40 .00 $500.00 1-provides for a settle-up at YE for excess of actual claims costs over projected claims, up to 108% of projection; None -subj.to $200 Ded. $10/$40/60 $50/$150 Pays 80%for Preventive & Basic No Deductible $15 .00 $40.00 $500.00 1-actual premium for 100% of projected claims cost (no settle-up at YE) CITY OF FAIRHOPE PROPOSALS FOR EMPLOYEE HEAL TH AND DENTAL INSURANCE EMPLOYEE PREMIUM FAMILY PREMIUM RETIREE SINGLE COV. PREMIUM RETIREE AND DEPENDENTS PREMIUM IN NElWORK MEDICAL DEDUCTIBLE OUT OF NElWORK MEDICAL DEDUCTIBLE IN NElWORK PHYSICIAN CO -PAY AMT. OF BASIC COST COVERED BY PLAN O/S NETWORK PHYSICIAN CO-PAY NElWORK OUTPATIENT HOSPITAL CO-PAY O/S NElWORK: HOSPITAL CO-PAY GUARDIAN LIFE INS. CO. OF AMERICA Submitted by Barnes Insurance & Financial Services, Broker (Dental Insurance) n/a n/a nla n/a n/a n/a n/a n/a n/a n/a n/a .. .. NETWORK: IN.PATIENT HOSPITAL CO-PAY PRESCRIPTION COPAYS ANNUAL DENTAL DEDUCTIBLE DENTAL CO.PAY EMPLOYEE DENTAL PREMIUM FAMILY DENTAL PREMIUM ANNUAL MAXIMUM DENTAL BENEFIT SPECIAL TERMS n/a n/a $50/$150 (0 for Preventive) Pays 80% for Preventive & Basic $14.15 $35 .34 $500 .00 1-Addit'I Voluntary dental plan also available ($27 .50/ $68.69/mo) for 100% Prev. cov. & $1,000 max benefit 2-Portion of unused annual max. can be rolled over to next year BLUE CROSS -BLUE SHIELD CONTINGENT PREMIUM AGREEMENT -10 YEAR HISTORY FISCAL YR 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 TOTALS 7/26/2010 N.Wilson 100% PREMIUM $3,024 ,379 $ $2,644,081 $ $2,391 ,680 $ $2,302,131 $ $2,115 ,431 $ $1 ,887 ,905 $ $1 ,676,483 $ $1 ,484 ,458 $ $1 ,336,861 $ $1 ,074 ,927 $ ANNUAL 88% SAVINGS PREMIUM IN PREMIUM 2,661,453 $ 362,925 2 ,326 ,791 $ 317 ,290 2,104 ,678 $ 287 ,002 2,025 ,876 $ 276,256 1,861 ,580 $ 253,852 1,661,356 $ 226 ,549 1,475 ,305 $ 201 ,178 1,306,323 $ 178 ,1 35 1,176,438 $ 160,423 945 ,936 $ 128,991 $ 2,392,600 (89-108% of full premium, based on claims) AVINGS YEAR-END OR SETTLEMENT COST $ 418 ,241 $ (55,316) $ $ 317 ,290 $ 385 ,319 $ (98,318) $ $ 276,256 $ 320 ,643 $ (66 ,792) $ 320,280 $ (93 ,732) $ 214,751 $ (13,573) $ 295 ,330 $ (117,195) $ $ 160,423 $ 139,767 $ (10,776) $ 2,094 ,332 $1 298,269 Emolo~ee Healthcare in Alabama Towns & Cities I '-" Citv Ra~ toward EmRIO)l'.ee Ra)!'. Citv Pa)!'. Citv[Town Insurance Provider EmRIO)l'.ee for EmRlo~ee toward Famil~ Abbeville Alabama Municipal Corporation 100% 0% 0% Andalusia State Employees Insurance Board BC/BS 100% 0% 40% Anniston Blue Cross Blue Shield of Alabama 75% 25% 75% Ashland 1 Blue Cross Blue Shield of Alabama 100% 0% 0% Ashville ·~ State Employees Insurance Board BC/BS 100% 0% 100% Athens Blue Cross Blue Shield of Alabama 85% 15% 85% -- Auburn Blue Cross Blue Shield of Alabama 91% 9% 59% Baileyton none n/a n/a n/a Bayou La _Bat re United Health Care 100% 0% 100% Bear Creek State Employees Insurance Board BC/BS 100% 0% 0% Brent State Employees Insurance Board BC/BS I 100% 0% 75% Chatom Blue Cross Blue Shield of Alabama 100% 0% 0% Clanton Local Government Health 100% 0% 0% Clio Local Government Health BC/BS 100% 0% 50% Collinsville State Employees Insurance Board BC/BS 100% 0% $239 Courtland jState Employees Insurance Board BC/BS 100% 0% 0% Cowarts :none n/a n/a n/a --· -----~-fstate Employees Insurance Board BC/BS Cullman 100% 0% 63% ----- •aphne _______ !Blue Cross Blue Shield of Alabama 94% 6% 83% othan 1Blue Cross Blue Shield of Alabama 92% 8% 80% Eclectic 'State Employees Insurance Board BC/BS 100% 0% 50% Elmore Blue Cross Blue Shield of Alabama 100% 0% 50% Enterprise State Employees Insurance Board BC/BS 100% 0% 68% - Eufaula Blue Cross Blue Shield of Alabama 91% 9% 74% Eva none n/a n/a n/a Florala Blue Cross Blue Shield of Alabama 100% 0% 0% Fort Payne State Employees Insurance Board BC/BS 100% 0% total less $174 Gadsden Local Government Health BC/BS · 86% 14% 86% Geneva State Employees Insurance Board BC/BS 100% 0% 50% Georgiana jstate Employees Insurance Board BC/BS I 100% 0% 0% Goodwater St;:itp FmnlnvPPC:: lnc::11r::inrP Rn::irrl Rr /RC:: 1 nno.1.: no.1.. no.1.. --, - Greenville State Employees Insurance Board BC/BS 100% 0% $60 per month Guin Blue Cross Blue Shield of Alabama 100% 0% 80% ·----· Gulf Shores Blue Cross Blue Shield of Alabama 80% 20% Guntersville State Employees Insurance Board BC/BS 100% 0% 50% Haleyville State Employees Insurance Board BC/BS 90% 10% 69% --- _ Heflin State Employees Insurance Board BC/13S 80% 20% 80% - Highland Lake none n/a n/a n/a Jasper ,State Local Health lnsuranc~ 85% 15% 85% c ison I Blue Cross Blue Shield of Alabama 100% 0% 0% len State Employees Insurance Board BC/BS 100% 0% 0% I Lanett Blue Cross Blue Shield of Alabama $365 .28 $21 .66 0% !Lexington none $100 n/a n/a 1 Locust Fork State Employees Insurance Board BC/~S 50% 50% 0% rlouisville Blue Cross Blue Shield of Alabama unk unk unk Loxley Blue Cross Blue Shield of Alabama 85% 15% 85% Madison Blue Cross Blue Shield of Alabama 100% 0% 50% Mobile Blue Cross Blue Shield of Alabama 20% 80% 20% Moundville Blue Cross Blue Shield of Alabama 100% 0% 0% Mountain Brook ,; 'State Employees Insurance Board BC/BS 100% 0% 70% Muscle Shoals Blue Cross Blue Shield of Alabama 100% 0% Napier Field Blue Cross Blue Shield of Alabama 75% 25% 25% New Hope Blue 6-oss Blue Shield of Alabama 100% 0% portion Notasulga Blue Cross Blue Shield of Alabama 60% 40% 60% Oak Grove State Employees Insurance Board BC/BS 100% 0% 55% Opelika Blue Cross Blue Shield of Alabama 100% 0% 47% Orange Beach Blue Cross Blue Shield of Alabama 100% 0% 50%/100% Paint Rock none 0% 0% 0% Pelham Local Government Health 100% 0% $200 Pleasant Grove Blue Cross Blue Shield of Alabama 100% 0% 100% Rainbow City Local Government Health BC/BS 100% 0% 100% Red Bay Blue Cross Blue Shield of Alabama 100% 0% 60% Reform State Employees Insurance Board BC/BS 100% 0% 13.14% Riverside Local Government Health 100% 0% 55% ,...-:;itsuma Blue Cross Blue Shield of Alabama 85% 15% 85% ~cottsboro Blue Cross Blue Shield of Alabama 100% 0% portion Somerville Blue Cross Blue Shield of Alabama 100% 0% 0% Southside Blue Cross Blue Shield of Alabama 100% 0% 83% Steele State Employees Insurance Board BC/BS 100% 0% 100% Sulligent Blue Cross Blue Shield of Alabama 100% 0% 0% Talladega Local Government Health BC/BS 35% 65% 50% Tuskegee Blue Cross Blue Shield of Alabama 12% 82% 28% Trussville Blue Cross Blue Shield of Alabama 100% 0% 66% Union Springs , State Employees Insurance Board BC/Bs · 100% 0% 0% Valley Blue Cross Blue Shielq of Alabama 100% 0% 0% Vinemont State Employees Insurance Board BC/BS 100% 0% 0% I Westover none n/a n/a n/a Wilsonville State Employees Insurance Board BC/BS 100% 0% 86.86% Winfield State Employees Insurance Board BC/BS 70% 30% unk