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2018.05.18_FAB_Minutes_Regular • TOWN OF HIGHLAND BEACH FINANCIAL ADVISORY BOARD REGULAR MEETING MINUTES Town Hall/Commission Chambers Date: May 18, 2018 3614 South Ocean Boulevard Time: 1:30 PM Highland Beach, Florida 1. CALL TO ORDER: Chair Babij called the Financial Advisory Board Regular Meeting to order at 1:30 P.M. in the Commission Chambers. Roll call was taken followed by the Pledge of Allegiance. MEMBERS PRESENT UPON ROLL CALL: Member Edward Kornfeld Member Jeff Hollander Member Neil Eisenband Chair Greg Babij Finance Director Cale Curtis MEMBER ABSENT: Vice Chair David Stern 2. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA: Chair Babij called for any additions, deletions or modifications to the agenda. MOTION: Member Hollander moved to accept the agenda as presented. The motion was seconded by Member Kornfeld, which passed unanimously. 3. PUBLIC COMMENTS AND REQUESTS: There were no public comments. 4. PRESENTATIONS: A) Introduction of New Member Neil Eisenband Chair Babij welcomed Neil Eisenband to the Financial Advisory Board. Financial Advisory Board Regular Minutes Friday, May 18, 2018 Page 2 of 6 Member Eisenband is looking forward to working with the members. 5. APPROVAL OF MINUTES: • April 13, 2018— Regular Meeting Member Kornfeld added the words "internal control"before the word "review"on Page 2 under his comments. MOTION: Member Hollander moved to approve the minutes of May 18, 2018, Regular Meeting as amended. Member Kornfeld seconded the motion, which passed unanimously. 6. OLD BUSINESS: None. 7. NEW BUSINESS: A. Employee Medical Insurance Renewal—July 1, 2018 Finance Director Cale Curtis introduced this item. The Financial Advisory Board has been tasked with a review of the existing insurance plan as well as alternate plans that would align the Town with what other neighboring cities are offering to their employees. Mark Rheingold of Mark Rheingold & Associates, Inc. explained the different plans. He advised that having 51 plus employees qualifies for a discount of ten percent (10%). Member Hollander asked if the Town could partner with other cities in order to get to that level since it is unlikely there would be that number of employees before the year end. Mr. Rheingold explained that this is not an option at this time. Member Babii asked if there is bundling if the Town would go through a PEO or employee leasing. Mr. Rheingold explained that it depends on the percentage of payroll, and he is not certain that leasing companies deal with municipalities. He advised he will look into it. Member Kornfeld questioned if part-time employees are covered by the insurance. Finance Director Curtis explained that they are not covered for the insurance but are included in the count. Mr. Rheingold informed the Board that there is a substantial saving if the count goes over 50 employees. Discussion ensued with regard to the proposed plan with United Health Care and Neighborhood Health Partnership, Inc. The discussion included coverage for in network Financial Advisory Board Regular Minutes Friday, May 18, 2018 Page 3 of 6 and out of network doctors and hospitals as well as employee contributions in other municipalities. Board Discussion: Member Eisenband suggested holding the Town's increase in insurance costs to six to eight percent (6%to 8%). Member Hollander explained that it is very important to take care of the small group of employees who are not highly compensated. He explained that cost sharing on the premium makes a great deal of sense, which would benefit the employees with out-of- pocket expenses. Member Kornfeld provided comments with regard to the amount of monies paid for insurance premiums by the Town. He stated the only way it can change is by having the employees pay a portion, and this could be an issue since it has never been done before. He advised the employees need to understand the difference between HMO and PPO and in and out of network. Member Hollander provided comments regarding the HSA and the benefits to both the employees and the Town. He stated that it could help bridge the difference and the employees would have the extra cash if the Town funds the HSA. Discussion ensued with regard to the HSA account and whether or not it is a viable plan. Chair Babii explained that HSA has a cap to the amount of money that can be put into the account. This money can be used to offset some of the out-of-pocket expense for the employees. He provided comments with regard to Gap Insurance. Finance Director Curtis explained that Gap Insurance was not a viable option and did not save much for the Town. Chair Babf also commented on the difference between Neighborhood Health Partnership Inc., which is the local plan and United Health, which is the national plan. Member Eisenband explained that it is hard to determine what is fair without canvassing the employees as to which plan they would prefer. Member Kornfeld questioned the amount of employees who have the current Blue Cross Platinum Plan. Finance Director Curtis explained that the Platinum Plan is offered to each employee. He advised there are seventeen(17)employees enrolled in the Blue Cross HMO Platinum Plan; two (2) employees upgraded to the Blue Cross Gold POS Plan and twelve (12) employees are in the Platinum POS Plan. He explained to the Board that the discussion is with regard to the Town offering a base type silver-type plan with an option to upgrade to a gold plan and not offer a platinum plan. Member Kornfeld had a concern with regard to the employees' reaction to the new plans being offered. Member Eisenband questioned the difference between the Blue Cross Platinum Plan and the new plans being offered. Finance Director Curtis explained there was a substantial savings in the Neighborhood Plan or United Health Platinum Plans compared to the Blue Cross Platinum Plan. Financial Advisory Board Regular Minutes Friday, May 18,2018 Page 4 of 6 Member Hollander asked if the employees could be offered a Silver Neighborhood,a Gold Neighborhood and a Platinum United Healthcare National Plan. Mr. Rheingold explained that there could be a total of three plans offered. MOTION: Member Hollander moved to offer the following three plans: Neighborhood Silver HMO, a Neighborhood Gold POS as an upgrade and a United Platinum as an ultimate upgrade for those who might want to have the national POS coverage. The motion was seconded by Member Eisenband. Member Hollander proposed that the plans be managed the same way as we do now. He explain that the base plan is fully paid by the Town and the upgraded plans incremental differences are paid by pretax dollars from each employee. Finance Director Curtis presented copies of the new plans that include the Platinum POS plan. Member Hollander deferred his motion until more information can be reviewed. Finance Director Curtis described the different plans shown on the spreadsheets distributed to the members. Member Hollander questioned the difference between the Neighborhood Platinum POS and the current HMO the employees now have and the problems that may occur if an employee has to switch from an HMO to a POS. Mr. Rheingold explained that the only difference is that the POS gives the employee the ability to go out of network. The United Healthcare POS plan is national. He explained the criteria needed between the gold, silver and platinum plans. Katharine Kilpatrick, United Healthcare Representative explained the three plans chosen and offered to employees will remain throughout the year. Member Hollander withdrew his motion. Further discussion ensued with regard to the three type of plans offered to the employees. MOTION: Member Hollander moved to offer the following: 100% coverage for all eligible employees and dependents for the Neighborhood AVM6 HMO Gold Plan and offer upgrades that the employees pay for the United Healthcare Gold POS AUW5,and a further upgrade for the Neighborhood Platinum POS AVM5. The motion was seconded by Chair Babij. Financial Advisory Board Regular Minutes Friday, May 18, 2018 Page 5 of 6 UPON ROLL CALL: Member Hollander - Yes Chair Babij - Yes Member Kornfeld - Yes Member Eisenband - Yes Motion passed on a 4 to 0 vote. 8. REPORTS—BOARD MEMBERS A) Member Hollander had no report. B) Member Kornfeld had no report. C) Member Eisenband had no report. D) Chair Babij had no report. 9. ANNOUNCEMENTS Deputy Town Clerk Cuebas made the following announcements: • Town Commission Special Meeting—Monday, May 21, 2018 at 10:00 AM. • Town Hall will be closed: Monday May 28, 2018 in observance of Memorial Day. • Town Commission Workshop Meeting—Tuesday, May 29, 2018 at 1:30 PM. • Town Commission Regular Meeting—Tuesday, June 5, 2018 at 1:30 PM. 10. ADJOURNMENT There being no further business to come before the Board, Chair Babij called for a motion to adjourn. MOTION: Member Hollander moved to adjourn the meeting at 2:30 PM. Member Eisenband seconded the motion, which passed unanimously. Financial Advisory Board Regular Minutes Friday, May 18, 2018 Page 6 of 6 APPRQi ),rat the January 24, 2019 Meeting. o g Babij, Chair ATTES Date: anelda Gaskins, MM(r Town Clerk