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Home My WebLink About2005-09-21 ad Hoc Health Insurance Task Force MinutesHealth Insurance Task Force Meeting September 21, 2005 Present were Chairman Ben Tafoya, Task Force members Don Green, Carl McFadden, Chuck Robinson, Pat Iapicca, and Kathleen Golini. Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Human Resources Administrator Carol Roberts, members of the Health Insurance Advisory Committee Darlene Porter and Arthur Vars, and from MIIA, Al Jones, Sandra Fiumefreddo and Wendy Gammons. Ben Tafoya explained how the Task Force was formed and then asked the MIIA representatives to explain what MIIA offered to the Town. Al Jones explained that MIIA is a joint purchasing trust with a risk financing mechanism. The risk belongs to all members of the trust. There are 105 members and over 25,000 subscribers. The government (Medicare, Medicaid) pays over half of health insurance claims. Blue Cross Blue Shield pays 90% of health insurance claims within three months. Claims above $50,000 are pooled within the MIIA Trust. MIIA has reinsurance for large losses; a big umbrella policy on the whole pool (inexpensive) and a specific policy on individual claims over $50,000 (expensive). Tax is levied on all claims to pay for the "free care" pool. 88-92% of premiums collected go to providers to pay health insurance claims. Medical trends for HMO this year are 15%. For its members MIIA sends all enrollments and changes for subscribers to Blue Cross, orders cards, reconciles the billing with Blue Cross, and on difficult claims will be an advocate for the subscriber. MIIA administrative costs are 34% lower than Blue Cross Blue Shield. Wendy Gammon discussed the wellness programs that are offered through MIIA and the ones that Reading has offered to its employees. Discussion followed about how the real issue is which health insurance company manages its claims the best and has the most cost-effective contracts with providers. Don Green disagreed with the idea that wellness programs will reduce claims in the long run. The next meeting will be October 6, 2005 at 7:30 p.m. Respectfully, Secretary