Minutes

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

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.

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?

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.

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.

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

City contributions to the HDHP w/H.S.A. are now memorialized in the
Policy:

The City’s contribution to Health Savings Accounts remain at $1,500
individual / $3,000 2-person or family. The deductibles in the High

Deductible Health Plan with Health Savings Account (HDHP w/ H.S.A.)
remain at $2,000 individual / $4,000 2-person or family.

Proposed Changes to the HMO:

Effective July 1, 2020
° $20 co-pay increase to $25

° $250 individual / $500 2-person or family inpatient / outpatient
deductible increase to $1500 / $3000.

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

SMART SHOPPER RESULTS as of February 2020

ro 206

Activation Activation Activated Houscholds
er Lal sturse lone) as

mabe 141

Activated Activated Shop

Shopping Rate eT as HERPES Say pat

Fd = bra) a bra) wi i

Shop Conwersion § Shop Conversion Households Total
| a steals Receiving Incentive #incentives

$27,786 $3,100 $24,686

Total Gross Savings Total Incentives($) Total Claims Savings

Incentive and Savings Summary

Why does H.S.A. save $

HMO (Health Maintenance Organization)
HMO members are unaware of their claims cost. $20 copay for most services.

H.S.A. (Consumer Driven High Deductible Health Plan with Health Savings
Account)

Patients receive EOBs. Awareness of claims cost fosters natural interest in
consumer involvement.

H.S.A. is a tax-free savings plan