HomeMy WebLinkAbout08-05-2015 Insurance Committee Meeting Minutes City of Canton
Insurance Committee Meeting
City Hall
2 North Main Canton 11 61520
08-05-2015
10:00a m
An insurance meeting of the Canton City Council was held on August 5, 2015 (10:OOam) in the
Director's Room of City Hall at 2 North Main Street, Canton II.
MEMBERS PRESENT:
Alderman Gerald Ellis, City Clerk Diana Pavley-Rock, Parlin Ingersoll Library Representative Kim
Bunner, Canton Park District Representative Matt Murphy, Fire Union Representative Jay Smith,
Police Union Representative Brad Richards, Public Works union Representative Nancy Mackey
OVERVIEW OF INSURANCE PLAN STRUCTURE
City Clerk Diana Pavley-Rock explained that she wanted to bring the insurance committee
members together to begin looking at new ways the City of Canton could save money with the
insurance premiums and plan structure. Currently the City pays 1.5 million dollars per year in
insurance premiums. During the last budget session the City decided to change the plan year
for the insurance so the contract with BCBS and Health Alliance would run consistent with our
fiscal year. It will make it easier to budget for insurance cost if we keep the plan year running
with our fiscal year. The contract year previously started June 1 of each year, with open
enrollment occurring during the month of May. Going forward the new plan year will begin
May 1 with open enrollment occurring during the month of April.
Currently the City does not have a broker or an agent of record with BCBS. The City has used
Rick Semonis for many years as a consultant hired to just negotiate rates. Diana said she was
approached about the possibility of looking at other companies for services. The City could
obtain costs for a broker, agent or a consultant. Diana said that approximately 10 years ago
the City discussed the possibility of having a local agent be our broker. The City found at that
time that the cost for the broker was going to be approximately$60,000.00 .......... which would
be the commission he would receive to be the broker. A broker would handle open enrollment,
negotiations, insurance claim issues or whatever would be outlined in the scope of service.
New regulations have recently come into play that is going to require the city to file reports to
be in compliance with the affordable care act (ACA) at the end of this year. The reporting
requirement will be complicated and this would be a good example of where a broker could
come in very helpful.
Jay Smith said that he has talked with Granite City regarding a high deductible health plan that
they implemented several years ago. This plan has saved Granite City thousands of dollars in
premiums. According to Jay Smith- this plan became mandatory for the employees. The
premium was much lower-- which in turn saved their City a considerable amount of money.
The employees opened a health savings and the City put the amount of their deductible for the
high deductible health plan into the health savings account. Jay will contact Granite City and
bring back information to the next insurance committee meeting.
Diana said she would gather more information about consultants vs. brokers and bring that to
the next meeting for further discussion.
Motion and cond er a e by Matt Murphy/Jay Smith to adjourn the meeting at 10:45am.
Th oti carri by oic vote and was unanimous.
ana Pav ey-R ck, ity Clerk