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Library Minutes 2014 03-03-14 special meetingPage 1 of 3 APPROVED 5/12/14 Yorkville Public Library Special Board of Trustees Meeting Monday, March 3, 2014, 2pm 902 Game Farm Road – Library Board Room The special meeting was called to order at 2:05pm by Trustee Russ Walter. Roll Call: Carol LaChance-yes, Sandy Lindblom-yes, Barb Johnson-yes, Jo Ann Gryder-yes, Russ Walter-yes, Susan Chacon-yes Absent: Beth Gambro, Judy Somerlot Others Present: Library Director Michelle Pfister Dixie Debord Sharyl Iwanski Shelley Augustine Tim Schaeffer, Health Markets Recognition of Visitors: Mr. Walter recognized the Library staff that was present. Amendments to the Agenda: None Public Comment: None New Business: Library Staff Health Insurance Mr. Walter said he has been working with Tim Schaeffer on his personal health insurance and asked him to make a presentation regarding alternative health insurance for Library staff. Currently, $100,000 in premiums is paid annually for 5 staff members. Mr. Walter said the Board is not trying to cut insurance for library employees, but wants good, less expensive coverage while saving money. Mr. Schaeffer said he is a licensed insurance agent with Health Markets and has contracts with all major insurance companies in Illinois. He had previously asked Ms. Pfister for a copy of the current insurance plans for the insured employees so he could compare benefit packages. He found comparable cost plans for each. He said that his goal is to to bring the information to the Board and to present options. If the Board decides to make a change to the insurance, he would guide each employee through the process. Page 2 of 3 Mr. Schaeffer started with a discussion of the current health plan. It is a Blue Cross Blue Shield, Blue Edge HSA with a deductible of $3,500 and family deductible of $7,000. Maximum out of pocket for individual is $5,800 and family is $11,600. The annual premium is $76,200--the library pays about $66,361 and the employee about $9,839. The proposed two health plans are BCBS Blue Choice, Silver Choice or a Medicare supplement, Parts F & D. Plan F would be $2,140 deductible per person, family deductible $12,000. Max out of pocket is $6,000 single and $12,700 family. This plan has a $30 co-pay for Dr. visits and $30 co-pay for medications. On the current Blue Edge everything is out of pocket until the deductible is met. The employees also have a card with $6,000 on it to help meet the deductible. Mr. Schaeffer said the card is a health reimbursement arrangement with pre-tax money that helps pay out of pocket expenses. Under the proposed new plans, the annual premium would be $36,907 for a savings of $39,293 over the current premiums. If the employee paid 10% of the premium, the savings to the Library would be $33,145 and $6,517 to the employee. As of now, 10% of the yearly premium is paid by the employee. A savings of about $1,100 per year would be realized by each employee under an alternate plan. Ms. Debord asked if there is a law that if you are offered a group plan it cannot be taken away. Tim said there is a mandate that begins in 2016 that says a group plan does not have to be offered to less than 50 employees. Ms. Johnson asked about Doctor coverage. If the employee's Dr. is not covered under a Blue Cross Blue Shield plan, Mr. Schaeffer would look at other options. The dental and vision portions were discussed next. The current cost is $5,092 a year for dental and $643 for vision which are 100% employer paid. On the proposed plan: vision would be about $1,200 and dental would be $5,616. (better vision plan than now). Current plan: Proposed plan: Health: $76,200 $36,907 Dental: $ 5,092 $5,616 Vision: $ 643 $1,200 TOTAL: $81,935 $43,723 TOTAL SAVINGS: $38,212 Tim then discussed individual plans for Michelle and the other employees. It was noted that the HRA card they have could still be used toward the co-pay under the proposed new plans. The HRA cards are issued by the employer and are pre-loaded with $6,000. If this amount is not used, it is a “use it or lose it” type situation. Ms. Lindblom asked how this is now being paid. Ms. Gryder questioned whether the unused money comes back to the City or to the Library. This will be researched. Tim suggested that the Board determine an overall amount they are willing to pay or can afford for any new plan rather than choosing a new plan for everyone. Sandy Lindblom said the Library will need to determine where the $6,000 is coming from every month for each employee. Mr. Walter said he has seen medical expenses each month on the bill list which may account for this $6,000. A breakout of expenses will be requested from the City. Page 3 of 3 Payment of the bills on the proposed plan was explained by Tim. The employee would receive the bill, it's paid by the employee, receipt is given to employer for reimbursement on a tax-free basis. He said the Board could not legally designate funds toward the health insurance for individual plans, but could give the employees a raise and reimburse the expenses on a tax-free basis. Tim proposed using a company called Base 105 for health reimbursements. Mr. Walter uses this and enters all his medical expenses into a website. At the end of the year, an entire list of expenses is sent and it shows how much you can deduct from your tax. Russ Walter noted that on the city group plan, the employee has limited choice, but on an individual plan, the employee would have a choice. Dixie said that a drawback is that all of the paperwork, choices, Dr's, etc. must be done by the employee, but under the City plan it is all done for them. Insurance subsidies were also discussed. If an employee qualifies for a subsidy through healthcare.gov, the employer cannot reimburse the premiums. Tim goes directly through the carrier for insurance and does not go through the government website. Tim said the qualifying questions asked of insurance applicants now are: age, where do you live, are you a citizen, do you smoke. Pre-existing conditions are no longer an issue. Ms. Lindblom raised the question of who would do the accounting for a new insurance plan and said that the City now does all necessary paperwork. Ms. Pfister asked if Tim would become the “HR person” or facilitator to help with accounting and answer questions about the insurance. Tim would act as the facilitator and meet with each employee individually. It was also thought that the Library can opt out of the City insurance plan, but the City Finance Director was asked to determine this in an earlier request. Dixie asked what would happen if the premiums suddently increased greatly due to a serious illness, etc. Mr. Schaeffer replied that the insurance company cannot increase rates based on claims or a pre- existing condition. Regarding insurance effective dates: if enrollment in any new plan is after March 15th, the insurance would not be effective until May 1st. If enrollment is March 15th or sooner, insurance would become effective April 1st. The slide presentation that Tim gave will be sent to all Board members via Russ Walter. Trustee Gryder also noted that she would like a legal review prior to any decision. Adjournment: There was no further business and the meeting adjourned at 3:44pm. Minutes respectfully submitted by Marlys Young