HomeMy WebLinkAbout2005-10-27 ad Hoc Health Insurance Task Force MinutesHealth. Insurance Task Force Meeting
October 27, 2005
Present were Chairman Ben Tafoya, Task Force members Don Green, Chuck Robinson,
Pat Iapicca, and Kathleen Golini. Also present were Town Manager Peter
Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, and
members of the Health Insurance Advisory Committee Arthur Vars and Tom McCarthy.
Ben Tafoya reviewed a five-page memo he drafted for the purpose of reporting the
progress of the Task Force to the upcoming Town Meeting next month. The focus of this
discussion was as follows:
• The new process the Town was using in order to secure the best business deal on
the purchase of healthcare coverage: The entire task force agreed that hiring Steve
Tringale (of Hinckley, Allen and Tringale) would serve the Town very well in
achieving this goal. However, large cost increases are still expected.
• The current demographics and statistical data of the Town's insured population,
including recent trends: At a time when total employment by the Town decreased
slightly, the covered pool actually increased. Two factors contributed to this: first
was a strategic pull-back by the private sector in offering coverage; second was
the continued increase in the amount of retirees in the pool (to about half of the
pool now).
• The increased use of the HMO option by the insured pool: In FY2000, 455 of
1031 (44.1 participants used this option; in FY2006, that figure had climbed to
546 of 1099 (49.7%). The HMO option is cheaper for the Town.
• The history of price increases: Ten years of data were examined, as well as the
responses by the Town to try to curb future increases. Costs were well-behaved
during the first five years, ranging from a 5% decrease to a 5% increase. The past
five years have seen significant increases of 15.6%; 19.1 11.0%; 7.2%; and
18.1%.
• The employer/employee split: The Town split of 70% - 30% was on the low side
for surrounding towns. Reading pays the same split for both active employees as
well as retirees. For active employees, Danvers also posted this low 70% share,
while Stoneham pays an 85% share. For retirees, Burlington, Melrose and
Winchester pay the legal minimum of a 50% share, while Tewksbury pays 100%
of this cost.
A discussion followed about what types of legislative changes were needed at the State
and Federal levels in order to best serve consumers.
The next meeting will be November 10, 2005 at 7:30pm.
Respectfully,
Secretary