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The primary intent of changing the HMO is not to shift health care costs to
employees but to encourage employees to enroll in the HDHP w/H.S.A., the plan
that has proven to be the most cost effective and well liked.

Family Plan Analysis: In Network
HMO H.S.A.

FY21 Employee Cost: $ 5,181.36 Annually FY21 Employee Cost: $ 5,274.60 Annually

Savings from FY20 Cost $ 936.84 Employer Contribution: $ 3,000.00

Deductible $ 4,000.00 per family

Inpatient/Outpatient Exposure $ 3,000.00 per family
(with Hospitalization or Procedure) Employee Exposure: $ 1,000.00
Exposure after Premium Change: $ 2,063.16 Savings from FY20 HMO Cost $ 843.60

(if contributed into H.S.A.)

Routine Copays $ ??? Exposure after savings: $ 156.40

Employee Engagement:

March 9" — City Employees received meeting invitation from Mayor Donchess.

March 9" — To comply with NRO 50-3 Amendments, City Directors and
Department Heads were invited to an open house on March 12 with Larry
Budreau and Kim Kleiner as an opportunity for them to represent their division /

department and comment on the proposed changes.

March 12" — Unaffiliated employee meeting with Mayor Donchess. Proposal
to split City’s contribution to H.S.A. was amended due to employee

feedback at this session.

March 12" — Division Director/Dept. Head meeting with Larry Budreau and Kim
Kleiner. Two Directors attended — inquiries were successfully answered.

Additional Measures:

1. Employee Education - WBS, our consultant has been to many divisions - Public Health, Public
Works, Police, as well as the Teachers Union and 3 sessions at City Hall over the past 2 months.

2. Wellness and Alternative Resources — We will continue to reasearch additional programs to
combine with Telehealth, Smartshopper, Sydney Care and our EAP program.

3. Dependent Audit — Currently, Anthem alerts employees as dependents are about to hit the 26 years
old cutoff. Committed to a full Dependent Audit next year.

4. DATA Upgrades - Our benefits system, Lawson, does not currently have the capability

to electronically update the Anthem system. This makes the transfer of benefit information still a very
manual system. The city has hired a consultant, Clear Sky, to build these data feeds. These feeds
have high security requirements to meet HIPPA requirements. Our efficiency and productivity will
greatly increase.

4. CBA Strategy Team - Started in November discussing health and wages. Members consist
of employee boards and divisional management. Strategically developing uniform language
and proposals for all union contracts.

Conclusion

Mayor Donchess, Administrative Services Director Kim Kleiner, and
Human Resources Director Larry Budreau urge the Board of Aldermen
to pass Ordinance 0-20-011.

Questions?

SPECIAL BOARD OF ALDERMEN

MARCH 31, 2020

7:00 p.m. City Hall Auditorium

PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

PRAYER OFFERED BY CITY CLERK SUSAN LOVERING

PLEDGE TO THE FLAG LED BY ALDERWOMAN SHOSHANNA KELLY
ROLL CALL
DISCUSSION

O-20-0011
Endorser: Mayor Jim Donchess
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Patricia Klee
Alderwoman-at-Large Shoshanna Kelly

Alderman Richard A. Dowd
REVISIONS TO THE HEALTH PLAN SECTION OF THE UNAFFILIATED EMPLOYEES

PERSONNEL POLICIES

ADJOURNMENT

O-20-011

ORDINANCE

REVISIONS TO THE HEALTH PLAN SECTION OF THE UNAFFILIATED
EMPLOYEES PERSONNEL POLICIES

CITY OF NASHUA

in the Year Two Thousand and Twenty

The City of Nashua ordains that Part I “Administrative Legislation,” Chapter 50
“Personnel”, Article I “General Provisions”, Section 50-6 “Merit system for personnel
administration pursuant to Charter §86-a” of the Nashua Revised Ordinances, as amended, be
hereby further amended by deleting the struck-through language and adding the new underlined
language as follows:

“§ 50-6. Merit system for personnel administration pursuant to Charter §86-a,

A. The “City of Nashua Unaffiliated Employees Personnel Policies”, dated January,
2048 July 1, 2020, is hereby adopted. These personnel policies are the merit system
for personnel administration required by Charter §86-a.”

The proposed changes to the “City of Nashua Unaffiliated Employees Personnel Policies”
currently dated January 1, 2018, are as follows:

In Section II “Benefits”, Subsection C “Insurances”, Item 1 “Health Plan”, add the
following new underlined language:

“1. Health Plan

Health insurance is available to employees regularly scheduled to work twenty (20) or
more hours per week. Full-time employees (regularly scheduled to work forty (40) hours
per week) contribute twenty percent (20%) of the working premium for the Health
Maintenance Organization (HMO) and High Deductible Health Plan (HDHP) options,
and thirty percent (30%) of the premium for the Point of Service Plan (POS). The City
contributes on a prorated basis for employees scheduled to work less than forty (40)
hours per week. Prorating examples follow:

ORDINANCE O-20-011

+ 20 hours weekly = 20 (hours) / 40 (hours) = .5 x 80% = 40% City contribution and
60% employee contribution.

+ 30 hours weekly = 30 / 40 = .75 x 80% = 60% City contribution and 40% employee
contribution.

Effective July 1. 2020, the following changes will be made to the Health Maintenance
Organization (HMO) Plan:

* $20 co-pay increase to $25.

* $250 individual / $500 2-person or family inpatient / outpatient deductible increase to
$1,500 / $3,000.

* Pharmacy copays increase from $5/$15/$35 ($5/$30/$70 mail order) to $10/$30/$50
($20/$60/$100 mail order),

The deductibles in the High Deductible Health Plan with Health Savings Account (HDHP

w/ H.S.A.) are unchanged. Deductibles remain at $2,000 individual / $4,000 2-person or

family. The City’s contributions to Health Savings Accounts remain at $1,500 individual

/ $3,000 2-person or family.

Effective July 1, 2020, the City H.S.A. contribution will be distributed in 2 installments.
one on or about July 1 and one on or about October 1, provided however that if an
employee is required to pay more towards his / her deductible than the initial 50%
contribution, upon presentation of suitable documentation, the City will contribute the

remaining 50% before October 1.

Employees who join the HDHP w/ ELS.A. at any time other than July 1 will receive a
pro-rated City contribution of $125 monthly for a single plan and $250 monthly for 2-
person or family plan for each full month remaining in that fiscal year.

Coverage for new employees is available on the 1° of the next month following date of
hire if hired on or before the 15" of the month; and on the 1" of the month following a
full month of employment if hired after the 15"" of the month. Employees who do not
enroll on their initial eligibility date may subsequently only do so during the annual open
enrollment period or following a “qualifying event.”

These changes to the Unaffiliated Employees Personnel Policies shall take effect on July 1,
2020.

LEGISLATIVE YEAR 2020

ORDINANCE: 0-20-011

PURPOSE: Revisions to the Health Plan section of the Unaffiliated
Employees Personnel Policies

ENDORSER(): Mayor Jim Donchess

COMMITTEE

ASSIGNMENT:

FISCAL NOTE: This legislation changes the design of the HMO health plan for

unaffiliated employees and it is anticipated that these changes
will reduce the health care claims charged to the City. The
reduction in the amount of health care claims can’t be
determined at this time as the unaffiliated subscribers to the
City’s health care will be able to change their choice of plan
during open enrollment.

ANALYSIS

This legislation proposes additions to the Health Plan section of the existing “Unaffiliated
Employees Personnel Policies”, dated January 1, 2018, to take effect on July 1, 2020. The
proposal makes changes to elements of the current HMO plan, including increased co-pays,
inpatient/outpatient deductibles, and pharmacy co-pays. It incorporates the current amounts for
the deductibles and City’s contributions for the High Deductible Health Plan with Health
Savings Account. With respect to the City’s HSA contributions, it provides for proration and
splitting the City’s contributions into two installments.

The City’s open enrollment period for health insurance changes generally takes place mid-April
to mid-May.

Under NRO 50-3, the merit plan may be amended by ordinance. Prior to the introduction of
such amendments by the Mayor, division directors and department heads shall have the
opportunity to comment on the amendments. That process has taken place.

Approved as to form: Office of Corporation Counsel

By: op Yo the
Date: MQreAWD US O09-D

A regular meeting of the Board of Aldermen was held Tuesday, March 24, 2020, at 7:30 p.m. at City Hall in
the Auditorium, 3" floor.

President Lori Wilshire presided; City Clerk Susan Lovering recorded.

Prayer was offered by City Clerk Susan Lovering; Alderman Patricia Klee led in the Pledge to the Flag.
The roll call was taken with members of the Board of Aldermen present President Wilshire, Alderman
O’Brien, Alderwoman Lu, Alderman Patricia Klee; the following member via Webex: Alderwoman Kelly,
Alderman Laws, Alderman Tencza, Alderman Schmidt, Alderman Dowd, Alderman Lopez, Alderwoman
Harriott-Gathright, and Alderman Jette

Alderman Caron, Alderman Skip Cleaver and Alderman Clemons were recorded absent.

The roll call was taken with 12 members of the Board of Aldermen present.

Mayor James W. Donchess, Corporation Counsel Steven A. Bolton were also in attendance/or participated
via Webex or via conference call.

President Wilshire
Acknowledged that those present could hear everyone participating either by Webex or by conference call
and under the terms of the State law that allows them to do so and explained that those not physically

attending the meeting were due to the Covid-19 virus.

Alderwoman Kelly, Alderman Dowd, Alderman Lopez, Alderman Tencza, Alderman Jette, Alderman Laws,
Alderman Schmidt, and Alderman Gathright were not physically but attended via phone.

Alderwoman Kelly

There is no one in the room with me; | am quarantined and | can hear everybody.

Alderman Dowd

I’m here and | am by myself and | am practicing the good graces by staying independent of crowds.
Susan Lovering, City Clerk

| can hear you as well.

Alderman Lopez

I’m here, can you hear me?

Ms. Lovering

| can hear you, can you state why are not able to attend and who is with you if anyone, please?

Alderman Lopez

Yeah, no one is with me, | am here because of the physical distancing; | have a really high exposure rate
working with people.

Ms. Lovering

Thank you. Alderman Tencza,

Board of Aldermen 3-24-2020 Page 2
Alderman Tencza

Present. | am here; | am also taking the recommendations of public health officials not to expose myself or
my family to the potential sickness.

Alderman Jette

Here and | am alone, and | am following the advisory to stay at home.
Ms. Lovering

Thank you. Alderman Schmidt?

Alderman Schmidt

Hello yes | am here, | am alone and | am staying at home because | am in quarantine.
Ms. Lovering

Thank you. Alderman Laws?

Alderman Laws

| am here, | am alone and | am also just social distancing.

Ms. Lovering

Thank you.

Alderman Harriott-Gathright

| am in the room alone and | am also keeping a social distance, after all with my 12 beautiful grandchildren
| don’t want to pass anything on.

Alderman Wilshire

| am here.

Ms. Lovering

You have a quorum Madam President.
President Wilshire

| need to make an announcement; even though there is no one in the public here right now but due to the
COVID-19 it is our civic responsibility to maintain the health and well-being of all Nashua residents. We
are asking that if you’ve had cold symptoms, fever, cough, headache, or diarrhea within the last 72 hours
that you please leave the meeting. Maintain social distancing of six feet, we are asking all to sit in the
seats identified and not move the chairs or otherwise disrupt the social distancing. We ask everyone
please refrain from making hand contact and respect our not shaking of hands. In the event that you need
to cough or sneeze, please cover your cough and/or sneeze using tissue or by coughing or sneezing into
your sleeve. Please dispose of the tissue in the trash bin and please wash your hands afterwards. Thank
you for working together to break the chain of infection and prevent the spread of disease.

Mayor, do you wish to address the Board?