BUTTE SCHOOLS SELF-FUNDED PROGRAMS BOARD OF DIRECTORS
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1 BUTTE SCHOOLS SELF-FUNDED PROGRAMS BOARD OF DIRECTORS February 23, 2015 Butte County Office of Education Board Room, 1859 Bird Street, Oroville, California M I N U T E S Board Members: Susan Watts, President...Oroville Union High School District Ruthie Anaya, Vice-President...Palermo Elementary School District Heather Naylor, Treasurer...Gridley Unified School District Pam Ragan...Biggs Unified School District Tad Alexander...Butte County Office of Education Trevor Stewart...Butte Glenn Community College District Connie Cavanaugh, Alternate...Chico Unified School District Greg Blake...Golden Feather Union Elementary School District Suzanne Carter-Herboldshimer...Manzanita Elementary School District Penny Chennell Carter...Oroville City Elementary School District David McCready...Paradise Unified School District Doug Williams...Pioneer Union Elementary School District Darlene Waddle...Thermalito Union Elementary School District Executive Director: Others: Christy Patterson...Butte Schools Self-Funded Programs Christine Kerns...Alliant Insurance Services, Inc. Scott McClave...Alliant Insurance Services, Inc. Lee Covella...Anthem Blue Cross Judy Saetern...Anthem Blue Cross Dee Gudmundson...Chico Unified School District Mary Schoenthaler...Chico Unified School District Rich Utterback...Chico Unified School District John Soldate...Butte Glenn Community College District Kristin Mundy...Paradise Unified School District Lori Larson...Paradise Unified School District Kathryn Kennedy...Paradise Unified School District Laura Kawasaki...Butte County Office of Education Mary Sakuma...Butte County Office of Education A. CALL TO ORDER President Watts called the meeting to order at 1:30 p.m. B. INTRODUCTIONS No introductions were made.
2 Minutes, Board of Directors Page 2 C. AGENDA Motion: Approve as presented. Made by: Heather Naylor Yes: 25 No: 0 Seconded by: Connie Cavanaugh Absent: 4 Roll call yes votes: Ragan, Stewart, Alexander, Cavanaugh, Blake, Naylor, Chennell Carter, Watts, Anaya, McCready, Waddle D. PUBLIC COMMENTS Kathryn Kennedy reporting that she had surveyed her membership and the majority preferred to remain with composite rates; she requested that the option of composite rates remain effective July 1, 2015, on a district by district basis. She also reported many are feeling pressured to seek care at the Health and Wellness Center and is conducting a survey as to how many of her unit members already have a primary care provider. E. CONSENT AGENDA Motion: Approve as presented. Made by: Penny Chennell Carter Yes: 25 No: 0 Seconded by: David McCready Absent: 4 Cavanaugh, Blake, Naylor, Chennell Carter, Watts, Anaya, McCready, Waddle and Carter- Herboldshimer. F. REPORT/ACTION ITEMS 1. Third Party Administrator s Reports: Lee Covella, Anthem Blue Cross, reported on the Anthem cyber-attack. 2. Consultant s Report: Christine Kerns did not have a separate report. 3. Executive Director s Report a. Financial Statements as of January 31, 2015: Christy Patterson, Executive Director, reviewed the January 31, 2015, financial statements. b. BASIC JPA update: Mrs. Patterson reported on BASIC s strategic action plan and considerations associated with cyber liability and flood coverage as well as increasing BSSP s attachment point to $250,000 versus the current $150,000 for liability coverage.
3 Minutes, Board of Directors Page 3 G. DISCUSSION/ACTION ITEMS 1. Benefit Plan Designs and Rates effective July 1, 2015 a. Medical and Prescription: i. Anthem Renewal: Mrs. Patterson reviewed key data included on Anthem s renewal, noting that although many indexes decreased the plans still face an overall trend increase due to inflation. Mrs. Covella reviewed the network and AIM program savings. Trevor Stewart, Butte College, requested Anthem to reconsider its 4% renewal increase in light of the lower educational funding increases. Mrs. Covella noted that there would not be an adjustment to other fees if Condition Care was cancelled. ii. ASO Checklist: Mrs. Patterson reviewed the checklist, noting that most of the changes were language clarification in nature and that she was not recommending the increases in chiropractic, physical therapy and acupuncture benefits at this time due to the additional cost of 0.46% and changes already made to those benefits effective July 1, Motion: Approve as presented. Seconded by: Ruthie Anaya Absent: 4 iii. Other: Rates and subsidy: Audience members commented about the financial difficulties members faced with last year s increases and that increases cannot be borne by employees this year as well. Others reported that members are avoiding medical care because they cannot afford it. Mrs. Patterson and Scott McClave, Alliant Insurance Services, reviewed the trend (currently at 13.2%) and subsidy calculations, noting the projections assume no costs or savings of the Health and Wellness Center. Mrs. Patterson also reviewed the minutes of the Employee Benefits Advisory Committee. Mr. Stewart shared his preference that use of rate stabilization funds be maximized to bring the renewal down to 5% or lower. Tiered Rates: Mrs. Patterson reviewed the proposed 2-tier and 3-tier rate structures and the Executive Committee s recommendation to offer tiered rates effective July 1, Directors commented that some agencies may be ready for tiered rates prior to 2016.
4 Minutes, Board of Directors Page 4 Motion: Provide 2-tiered rates (single 0.46; family 1.18) effective July 1, 2015; entry dates of July 1, 2015 and January 1, 2016; selection on a unit-by-unit basis; minimum three-year initial enrollment period. Seconded by: Trevor Stewart Absent: 4 Offer Plan: Ruthie Anaya reported it was important for districts to have this option as a safety-net to the measurement burden in the initial year. Pam Ragan moved to provide the offer plan as presented, effective July 1, 2015-June 30, 2016, with two tiers (employee and employee plus child(ren)). The motion was seconded by Penny Chennell Carter. After discussion, the motion was amended as noted below. Motion: Provide Offer plan effective July 1, 2015-June 30, 2016, with tiered factors of (employee 0.46; family excluding spouse/rdp 1.18) Seconded by: Penny Chennell Carter Absent: 4 Expanded Wellness Program: Mrs. Patterson reviewed the recent minutes from the Wellness Committee s meeting. Condition Care: Mrs. Patterson noted this program may be recommended for termination if a substitute program is provided at the Health and Wellness Center. Mrs. Anaya reported on the savings associated with the program. Mr. Stewart commented on the lack of engagement and cost of the program and audience members reported on using it for gaps in nutritional counseling under the plan. Motion: Terminate Condition Care effective June 30, Made by: Trevor Stewart Yes: 4 (Stewart, Ragan) No: 21 Seconded by: Pam Ragan Absent: 4 No votes: Alexander, Cavanaugh, Blake, Naylor, Chennell Carter, Watts, Anaya, McCready, Waddle Anthem s Select PPO Network: Mrs. Patterson recommended deferring this option to future years.
5 Minutes, Board of Directors Page 5 Referenced Based Pricing: Mrs. Patterson reviewed the proposed changes in the program. Motion: Include back surgery/laminectomy, repair of umbilical hernia, shoulder arthroscopy, colonoscopy with biopsy, colonoscopy with removal of lesions, bariatric surgery (laparoscopic gastric) and hysterectomy effective July 1, Made by: Connie Cavanaugh Yes: 25 No: 0 Seconded by: Heather Naylor Absent: 4 Dogwood: Motion: Increase Dogwood out of pocket limits to $6,450 (single) and $12,900 (family) effective July 1, Made by: Trevor Stewart Yes: 25 No: 0 Seconded by: Ruthie Anaya Absent: 4 Out of Pocket Maximums: Mrs. Patterson reported final recommendations would be provided in March. Life Insurance bundled with Medical: Mrs. Patterson recommended this change not be implemented at this time. Cedar HSA Account Fees: Mrs. Patterson recommended this change not be implemented at this time. b. Dental: Mrs. Patterson reported that the dental trend calculation is approximately 3.8%, which may be offset by utilization of rate stabilization funds. She also commented that a rate reduction may be proposed. c. Vision: Mrs. Patterson reported that the vision trend calculation is approximately 2.68%, which may be offset by utilization of rate stabilization funds. She also commented that a rate reduction may be proposed. 2. Broker Services Agreement: Mrs. Patterson reported that Alliant s commissions on the account had reduced from $193,000 in 2011/12, to $179,000 in 2012/13 and $161,000 in 2013/14 due to concessions, waiver of commission on the Healthstat contract, etc. Motion: Extend the contract through June 30, Seconded by: Tad Alexander Absent: 4 and Carter-Herboldshimer.
6 Minutes, Board of Directors Page 6 3. Revised Policies a. Policy 1.1, Covered Employees/Groups/Board Members: Motion: Approve revised policy 1.1 as amended (including adjunct within group C). Made by: Heather Naylor Yes: 25 No: 0 Seconded by: Pam Ragan Absent: 4 and Carter-Herboldshimer. b. Policy 1.24, Phantom Coordination of Benefits for Spouses/ Registered Domestic Partners: Motion: Approve revised policy 1.24 as amended (does not apply to tiered rates). Seconded by: Ruthie Anaya Absent: 4 and Carter-Herboldshimer. 4. Health and Wellness Center: Mrs. Patterson reported that a work study student has now been assigned and is assisting with phone duties three mornings each week. There was extended discussion regarding the continuing challenges of access to the HWC due to a full schedule, phone calls being answered or returned, and the timeline for adding additional staff. Mr. Stewart commented that online scheduling should also be a solution. Others suggested a survey of the entire membership due the low response of the in-clinic survey. The consensus was to schedule a special meeting to further discuss these issues. 5. Strategic Action Plan Update and Planning: The consensus was that a strategic planning session should be scheduled after September 15, 2015, with Michelle Murphy facilitating. H. ITEMS FROM THE DIRECTORS There were none. I. CLOSED SESSION President Watts adjourned the meeting to closed session at 4:15 p.m. for a conference with labor negotiators under Government Code Section : Agency Representative: Susan Watts, President; Unrepresented Employee: Christy Patterson, Executive Director. President Watts returned the meeting to open session at 4:25 p.m. and reported that no action had been taken. J. ADJOURNMENT President Watts adjourned the meeting at 4:25 p.m.
7 Minutes, Board of Directors Page 7 Respectfully submitted, Christy R. Patterson Executive Director
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