HomeMy WebLinkAbout2005-08-25 ad Hoc Health Insurance Task Force MinutesHealth Insurance Task Force Meeting t -i
August 25, 2005 MASS.
The meeting convened at 7:10 p.m. in the Conference Room, 16 Low9j1 ~trget-, Ae~4 0
Massachusetts. Present were Chairman Ben Tafoya, Task Force members Don Green,
Carl McFadden, Chuck Robinson, Pat Iapicca, and Kathleen Golini. Also present were
Human Resources Administrator Carol Roberts, Chairman of the Board of Selectman
Camille Anthony, members of the Health Insurance Advisory Committee Darlene Porter
and Arthur Vars, and Mike Giannattasio.
Ben Tafoya reviewed the agenda and the handouts. He also told the Task Force about an
article in the Municipal Advocate, Managing Health Costs, and requested a copy be sent
to all members. The committee reviewed the 2005-6 Health Insurance Rates that
compares the health insurance premiums paid by communities. The committee requested
the same information for Medex (Medicare supplement).
Discussion followed about the MIIA Renewal Rating sheets. The Task Force was unclear
on how much MIIA actually gets paid for administering our health insurance program.
Mike Giannattasio, an independent insurance broker, spoke to the committee about his
company and what services he could offer to the Town. His services would include:
reviewing our health insurance plans, getting proposals from health insurance companies,
making a recommendation after reviewing the proposals, and negotiating with the
companies on our behalf. He has no experience with municipalities. The insurance
company, not the Town, pays him.
Some of his other comments were:
• We should not be concerned with what other Towns are paying for health insurance,
since rates are based on claims experience.
• He thinks it is a plus we have coalition bargaining and that we don't have to bargain
with each union separately.
• There may be benefits to being part of MIIA that are not reflected in the numbers on
the renewal rating sheets.
Some of his suggestions were:
• Look at HMO Blue New England. That would allow retirees and actives that live in
any of the New England states to be on an HMO, not on Blue Care Elect.
• Look at an HMO for seniors. Down side would be if they are living out of state for 90
days (i.e. FL for the winter).
• Look at the $50,000 pooling point. Can we negotiate an increase in that to decrease
premiums? We would want to look at those claims over $50,000. Depending on
whether MIIA or BCBS is doing the reinsurance on catastrophic claims can make a
difference.
Mr. Giannattasio felt that the Town's health insurance program is above what he
considers the norm in the workplace. Massachusetts is a "benefit rich" state (i.e. state
mandates).
Pat Iapicca said the Health Insurance Advisory Committee has tried to educate employees
on the financial benefits of using a local hospital vs. a Boston hospital. Carl McFadden
said we should try to get bids from both MIIA and Blue Cross Blue Shield. Chuck
Robinson asked, and received an affirmative answer, that Giannattasio & Associates
deals with Tufts and Harvard Pilgrim Health Care.
When asked about a timeline, Mr. Giannattasio said it would take 90 days for him to do
his job. Mr. Giannattasio also supplied the committee with a copy of a Blue Cross Blue
Shield renewal sheet.
Discussion followed about the pros and cons of using a broker or a consultant to help
with the health insurance renewal process. Some of the options discussed were to bring a
consultant in to run the process and get 2-3 bids for the town to consider or use an
insurance broker to get the best program for the Town through negotiations with
insurance companies.
Ben Tafoya discussed how there was a savings to the employee and the Town when a
subscriber switches from the Blue Care Elect to HMO Blue.
The recommendations of the Health Insurance Advisory Committee, including increasing
co-pays or deductibles, were discussed. Arthur Vars commented that an increase in co-
pays might discourage members from getting routine tests done. Pat Iapicca said it was
very hard to get information from MIIA. Arthur Vars said the committee had asked for
numbers on emergency room visits and MIIA never supplied it.
Discussion continued on consultants and insurance brokers and the benefits of getting
outside expertise. (Don Green left the meeting.) The decision was made to bring two
speakers to the next meeting on September 1, 2005 to continue the discussion on
consultants and insurance brokers. Ben would contact Steve Tringale of Hinckley, Allen
and Tringale and Kimberly Rose-Hubbard from Mazonson.
A tentative date of September 7, 2005 at 7:00 p.m. was set for a follow-up meeting.
On a motion made by Chuck Robinson and seconded by Pat Iapicca the Health Insurance
Task Force adjourned at 10:10 p.m. by a vote of 5-0.
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