HomeMy WebLinkAbout2006-02-23 ad Hoc Health Insurance Task Force Minutes1 ~ fi t✓t
Health Insurance Task Force
February 23, 2006
Town Hall Conference Room
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The meeting convened at 7:30pm in the Town Hall Conference Room, 16 Lowell Street, Reading
Massachusetts. Present were Chairman Selectmen Ben Tafoya, and members Chuck Robinson,
Carl McFadden, Dr. Don Green, Pat Iappica, Kathleen Golini, as well as Darlene Porter, Town
staff Carol Roberts (Human Resources Administrator) and Bob LeLacheur (Assistant Town
Manager/Finance Director).
Ben Tafoya updated the ad hoc committee on the success of the RFP process. Last November, the
budget for health insurance was $6.612 million for FY07 (including the Enterprise funds). The
results of the RFP were a $5.84 million FY07 expense instead. Ben pointed out the advantage of
the Town Manager resigning from the MIIA Board as an indication that the Town was serious
about getting the best deal. He thanked Reading resident Steve Tringale, who served as the lead
consultant on the Health Insurance RFP process.
Dr. Green mentioned that the key to the process is to have and to promote the idea of healthy
employees.
Darlene Porter suggested that this time the employees were very supportive of the RFP process.
They believed that all involved had the same objectives.
Carl McFadden pointed out that, Reading had the `perfect storm' of events, including the effort to
reform health insurance at the state level.
Dr. Green mentioned that the Town got a good deal this time, but the whole system is one
utilizing the Devil's Bargain gaming logic. Healthcare reform has not fixed the overall problem.
Ben mentioned that it was the intention of the Town to continue to run the health insurance
procurement process by soliciting expertise, as it was such a large portion of the annual budget.
Steve Tringale is under contract through the renewal in mid 2007.
Ben suggested the future need to study healthcare benefits liabilities for retirees by FY08. Bob
LeLacheur updated the group on the current thinking of funding a stabilization fund for this
purpose, as soon as the Fall Town Meeting in 2006. Carl McFadden wondered if the Medicare
reimbursement that the schools pursue might be another good source of funds for this long-term
expense.
Ben mentioned that he would give a two-minute update to the 2006 Annual Town Meeting about
the work of this Task Force, and would draft a thank you to Steve Tringale.
On a motion by Green, seconded by Robinson, the meeting of February 23, 2006 adjourned
at 8:25pm by a vote of 6-0-0.
Respectfully submitted,
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