Insurance Committee Minutes April 19, 2011
The following members of the Insurance Committee were present: Ginny Borgmann, Derek Lay, Janet Ploch, Colleen Rauch, Roger Russell, Julie Scholl, Kevin Supple and Patrick Zeitz. Scott James, Sherry Seckfort and Sharon Morfeld from J.W. Terrill were present at the meeting. The information listed below was given to each committee member:
Meeting agenda and PowerPoint presentation Bank Comparisons - Health Savings Accounts RFP response summary information – STD/LTD and Life Insurance
Janet Ploch opened the meeting welcoming Sherry Seckfort who recently joined J.W. Terrill as a Senior Account Manager. Sherry will be working closely with Francis Howell’s account.
RFP Dental PPO - On April 6th, the FHSD Benefits Office received notification from Essex Dental (incumbent) that the claims data they had provided for the RFP process was incorrect. After the RFP closed on April 8th, Janet Ploch provided the corrected claims data to each company that had submitted a proposal. Each company had until April 14, 2011 to revise their original proposal. A summary of the dental proposals will be presented at the next Insurance Committee meeting on May 17, 2011. Family Dental Services - Francis Howell received a one year proposal from Family Dental Services. For Plan Year 2011/12, Family Dental proposed no increase to the current rates. There will be an increase in Co-pays for the following procedures: Surgical Extraction, Dentures, Root Canal (by specialist), Crowns (Porcelain to metal or gold) and Space Maintainers. The committee members support recommending Family Dental Services proposal to the Board of Education. RFP Life Insurance & Short and Long Term Disability- RFPs for Life Insurance, and STD/LTD insurance plans closed on April 8, 2011. The District received five Life Insurance proposals and six Disability proposals. Two “decline to bid” letters were received for both insurance plans. The RFP was written to allow the District to select different carriers for Life, STD and LTD. J.W. Terrill along with Janet Ploch evaluated each proposal based on key criteria. A summary of proposals was presented to the committee. J.W. Terrill reviewed the information with the Insurance Committee. The proposals were narrowed down to two competitive carriers: Dearborn National (current provider) and Lincoln Financial. Short Term Disability/Long Term Disability Insurance The Key Criteria used for evaluation:
Does the carrier have the ability to mirror the District’s current plan design for STD? Can the carrier administer numerous work calendars when calculating disability
Are the rates competitive relative to the current plan’s rates?
Dearborn National, incumbent carrier, manages the FHSD disability program very well and was low bidder. The committee members support recommending Dearborn National as the District’s STD/LTD carrier to the Board of Education. Life Insurance
The Key Criteria used for evaluation:
Does the carrier mirror the District’s current plan for life insurance? Are the rates competitive relative to the current plan’s rates?
After review of the proposals, the committee determined that Dearborn National and Lincoln Financial were the two most competitive bids. Lincoln Financial is low bidder and is offering employees an opportunity to increase their life insurance an additional $20,000 and spouses an additional $10,000, each at Open Enrollment, with no evidence of insurability. Since Dearborn National is the incumbent, J.W. Terrill will approach them one more time to see if they will match the Lincoln Financial proposal. If Dearborn National will match the Lincoln Financial proposal,the committee members support recommending Dearborn National as the District’s Life Insurance carrier to the Board of Education. If not, the committee supports recommending Lincoln Financial as the District’s Life Insurance carrier. Health Savings Accounts (H.S.A.) When the District first offered a Consumer Driven Health Plan, very few banks offered H.S.As. The District originally partnered with Enterprise Bank to manage employee H.S.A.s, but Enterprise Bank charged a monthly account fee which the District paid. Effective 10/01/10, the District changed to M & I Bank because they would not charge account fees for the 10/11 Plan Year. M & I Bank recently agreed to waive account fees for Plan Year 11/12. J.W. Terrill presented comparison information on H.S.A.s at multiple banks. The committee members support recommending M & I Bank for the 11/12 Plan Year to the Board of Education. Pharmacy Benefit Update
Medco is offering a new program called Generics Rx Advantage for members in the High or Base Plans. If a member fills a new 3 month generic prescription, on selected drugs, via Medco’s mail order pharmacy option, Medco will waive the co-pay. A member can also receive up to $25.00 in savings for filling, via mail order, select brand name scripts that are moving to generic in the near future (Lipitor, Lexapro, Plavix, Singulair, Actos, Diovan). Medco will send letters to members who have prescriptions with targeted drugs. The program becomes available July 1, 2011. The committee members agreed to offer this program to our members.
As a follow-up from our last meeting, the committee was given additional cost saving data, provided by Medco, on the following programs: Step Therapy, Prior Authorization and Member Pays the Difference. No action was taken. Autism Coverage
With the passing of HB 1311, the District is required to expand coverage of Autism services effective with Plan Year 2011/12. The Bill requires health carriers to provide coverage for the diagnosis and treatment of Autism Spectrum Disorders and provides coverage for Applied Behavior Assessment (ABA). ABA coverage is limited to $40,000 per year for dependents up to age 19. This could be a significant cost factor to the Plan. Medical Plan Performance
Data was provided to the committee comparing the average paid per month for the 1st Quarter of the last 4 plan years. However, due to a significant shift in enrollment between our three medical plans, it is difficult to compare data from our current Plan Year to previous years.
The next Insurance Committee Meeting will be held Tuesday, May 17, 2011. The agenda will include the Dental PPO plan RFP response summary, medical account review, 2011/12 medical plan premiums/schedule of benefits, Medical Spousal Exclusion, and a review of the information being presented to the Board of Education on June 16, 2011.
CAMPER HEALTHCARE RECOMMENDATIONS BY LICENSED MEDICAL PERSONNEL FORM 2 To Parents(s)/Guardian(s): Complete this section and give this form (FORM 2) and a copy of your completed CAMPER HEALTH HISTORY FORM (FORM 1) to your child’s health-care provider for review. Camp Glen Brook Dates will attend camp: _____/_____/_____ to _____/_____/_____ 35 Glen Brook Rd. Month Day Year M
Colonoscopy Preparation Instructions You are scheduled for a colonoscopy in our endoscopy center on . The facility is located at 347 East 37th Street. Plan to arrive 10 minutes prior to the scheduled time of the procedure. Shortly after checking in at the front desk, the staff of the endoscopy center will direct you from the waiting room to a changing area. We provide locked storage
Insurance Committee Minutes