Minutes 07-06-10
IAFF Contract Negotiations
July 6, 2010
Meeting began at 2:02pm
In attendance:
Sharyn Goebelt
Kurt Bressner
Kevin (Ray) Carter
Bill Bingham
Robert Kruse
Tom Murphy
Dean Kinser
Larry Lederhandler
Adam Turey
Sharyn provided updated insurance information and comparisons between Blue
Cross and CIGNA that were obtained late last week.
(Files attached)
Kurt stated that he had budgeted 30% for insurance costs in the FY 2010-11
budget and with the numbers as reflected on the negotiated prices from CIGNA,
a 9% increase, there would be a surplus of approximately $38,000. Kurt also
explained the savings associated with the manner in which pension obligations
are paid out.
Dean Kinser advised that he will need additional insurance information, such as a
listing of CIGNA provider hospitals and physicians in the area. He also
requested the number of bids that went out and was advised that six bids were
received. Some of the information requested was handed out at the previous
insurance committee meeting, but Sharyn will provide Dean with all information
requested.
Dean asked if it was possible for the bids to go out earlier next year to allow
sufficient time to review the information prior to contract and/or budget deadlines.
Sharyn explained that the request for proposal (RFP) was issued as early as
possible since it is necessary to have a percentage of the current year's claims
experience in order to issue an RFP.
Dean asked about the dental and vision insurance and was advised that there is
no change in these products.
Sharyn stated that the single pay rate for Blue Cross is $527.01 and the
projection for October 1,2010 is $709.11. The CIGNA rate at the 9% increase is
$575.15.
Responding to a question regarding how claims are processed, Sharyn advised
that they will be submitted exactly as they have in the past.
Responding to an inquiry regarding spouse plans, the revised CIGNA plan keeps
this unchanged from current.
Dean asked to receive the past two years in firefighter claims experience. This
information was tracked beginning October 2008; therefore there is not two years
worth of experience to date. However, Sharyn will provide Dean with the data
that she has available.
Sharyn advised that a CIGNA representative will be available at some point to
explain the program and the coverage / benefits.
The proposed changeover date is October 1, 2010. Open enrollment will be
conducted in August 2010. If a transfer of insurance is determined, new
insurance forms will need to be filled out by all employees affected.
Sharyn and Kurt explained the timetable for transition for insurance. Dean will be
provided all the pertinent info including 'Q and A' material so that he can share
this information with those he represents. It is understood that this item will be
on the July 20,2010 commission agenda for commission consideration. Due to
timing issues for submission of the agenda item, it was discussed that there
would be a notation on the cover letter that the recommended change to CIGNA
was discussed with the IAFF and is under review.
There is another insurance meeting tomorrow, Wednesday, July 7,2010 at 2pm
in the Library Program Room.
The insurance issue was finished with no further questions.
Kurt explained that the budget is balanced with the caveat that both the PD and
FD salary issues for the current year and next year are yet to be addressed.
Failure to address these issues will result in a $2m budget shortfall that will need
to be funded. Kurt advised that his recommendation to the commission will be to
not use one-time revenue for recurring expenses.
Dean explained that the I.A.F.F. understands the city's position and concerns.
He asked for consideration of adjusting the Duration article and possibly
extending the contract by two years. He will bring more specific information
forward at a subsequent meeting. He advised that the union is intent on bringing
their information forward soon so as to not prolong the process.
Another meeting will be set up next week - Date and Time TBD
Meeting adjourned at 2:37pm
Monitoring Report by Paid Utilization and Enrollment
Company: CITY OF BOYNTON BEACH
Group(a): 70029
Platform(a): All
Product(a): All
Location Code: All
Current PaId 0..: 0c:t200S - M.aG10
200910 148 318 $119,429.23 $0.00 $326.35 $326.35 $1,937.22 $18,583.39 $20,500.61 $50,925.84 $10,030.00 $81,456.25 $10,518.01 $92,300.61 77.28%
200911 148 318 $118,446.30 $0.00 $192.15 $192.15 $1,814.22 $12,435.79 $14,250.01 $31,125.94 $13,946.27 $59,322.~ $13,574.59 $73,088.96 61.71%
200912 148 317 $119,506.05 $0.00 $193.98 $193.98 $19,134.82 $23,326.57 $42,481.39 $43,872.98 $9,402.19 $95,736.56 $16,605.37 $112,535.91 94.17%
201001 159 328 $123,751.94 $0.00 $213.50 $213.50 $4,039.59 $23,972.36 $28,011.95 $39,808.33 $9,187.09 $77,007.37 $13,137.67 $90,358.54 73.02%
201002 159 328 $127,614.66 $0.00 $201.30 $201.30 $1,100.00 $22,179.52 $23,279.52 $37,819.11 $11,529.12 $72,627.75 $14,504.17 $87,333.22 68.44%
201003 159 330 $126,494.84 $0.00 $200.69 $200.69 $26,741.00 $10,722.05 $37,483.05 $47,491.78 $15,966.83 $100,921.66 $14,946.59 $116,068.94 91.76%
Total: 921 1,939 $735,243.02 $0.00 $1,327.97 $1,327.97 $54,766.85 $111,199.68 $165,966.53 $251,043.78 $70,061.50 $487,071~81 $83,286.40 $571,886.18 77.75%
Avg: 154 323 $122,540.50 $0.00 $221.33 $221.33 $9,127.81 $18,533.28 $27,661.09 $41,840.63 $11,676.92 $81,178.64 $13,881.07 $95,281.03 77.75%
Grand totallncludea Med FFS, Phannacy FFS and Capitation.
Enrollment ia recaat to reflect retroactive edjuatmenta.
MLR" Medical Lou Ratio
Monitoring Report by Paid Utilization and Enrollment
(rO0067) run on: April 30, 2010 Page: 1
Monitoring Report by Paid Utilization and Enrollment
Company: CITY OF BOYNTON BEACH
Group(s): 70029
Platfonn(s): All
Product(s): All
Location Code: All
Current Paid Date: Oct2oo9 - Mar2010
200910 77 11 47 318
200911 77 12 46 318
200912 77 13 45 317
201001 87 14 45 328
201002 87 14 45 328
201003 86 14 46 330
Total: 491 78 274 1,939
Avg: 82 13 13 46 323
Enrollment is recast to reflect retroactive adjustments.
Monitoring Report by Paid Utilization and Enrollment
(rO0067) run on: April 30, 2010 Page: 1
City of Boynton Beach - 2010 Marketing - Revised Cigna Rates
$527.01
$1,021.63
$946.17
$1,175.26
$575.15
$1,115.80
$1,035.28
$1,282.59
Notes:
In addition to the rate relief,
Cigna has set aside
approximately $35k in funds
for Wellness for the City
Actual rates will be based on final enrollment
THIS INFORM A TION IS PROPRIETARY AND SHOULD NOT BE DISTRIBUTED.
'vV,II,s