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Health and Dental Insurance Renewals
Mr.
Cheung provided background on the insurance renewal process.
He said that Mercer, the NYSSCPA’s new broker for employee
insurance plans, solicited bids from the following insurance
carriers: HIP, GHI, Aetna, Oxford, Cigna (which declined
to bid) and the incumbent Health Net. Mr. Cheung said that
staff reviewed the bids with Mercer and recommended that
the NYSSCPA renew with Health Net in 2007 at an annual premium
of $390,088.32, while maintaining the current level of and
approach to employee contributions. He noted that the quoted
premium reflected an overall renewal increase of 8.6%, or
$30,746.64, over the premium charged by Health Net in 2006,
which was $359,341.68.
Mr.
Riley asked if staff were happy with Health Net. Human
resources manager Ms. Lawrence stated that some employees
had reported a few issues regarding claims processing which
were successfully resolved, but that staff generally appeared
happy with Health Net, its benefits and physician network.
Ms.
Fierstein moved to approve the renewal of staff’s medical
insurance with Health Net at the quoted premium increase
of 8.6%. Ms. Kincaid seconded the motion. The motion passed
unanimously.
Mr.
Cheung then noted that Mercer did not obtain competitive
quotes for staff’s dental plan, underwritten by Aetna; however,
Aetna offered to renew the dental plan with no premium increase
in 2007. Staff, therefore, recommended the Aetna dental
plan be renewed as presented.
Ms.
Fierstein moved to approve the renewal of staff’s dental
insurance plan with Aetna in 2007 at no premium increase.
Mr. Stubbs seconded the motion. The motion passed unanimously.
The
Executive Committee then discussed Mercer’s employee benefits
benchmark survey which had been prepared for the NYSSCPA.
It was noted that the survey overall illustrated that the
NYSSCPA was providing employee benefits that - for the most
part - were competitive with both small, non-profit, mid-sized
and large firms.
The
committee then discussed the NYSSCPA’s approach to, and
amount of, employees’ payroll deductions for health benefits.
Several observed that the direct cost to employees for family
coverage was substantially higher than that charged for
individual coverage. Mr. Cheung noted that historically,
the NYSSCPA contributed the same amount towards each employee’s
insurance premiums, regardless of whether the employee elected
individual or family coverage. The amount was whatever the
premium was that year for single coverage, less a small
contribution by the employees, currently $32.50 or $54.17
per month for HMO or POS plans respectively. Several committee
members agreed with this approach, noting that fairness
required the NYSSCPA to treat all employees equally without
regard to their respective family situations. One executive
committee member noted that another way to treat employees
equally would be to pay the same percentage of their premiums,
regardless of marital status.
One
committee member noted that their company stratified the
coverage into more categories than just single and married.
Mr. Grumet said that Mercer indicated it could commence
the health insurance renewal process much earlier next year,
perhaps as early as the summer. He suggested that Mercer
be asked to look at family coverage in general and the organization’s
approach to it. This suggestion was well received.
Mr.
Sohr then moved that the NYSSCPA contribute $385 monthly
towards each employee’s health insurance premium, and require
that each participating employee pay the difference between
the NYSSCPA’s employer contribution and the actual monthly
premium for the employee’s selected coverage option. Ms.
Kincaid seconded the motion. The motion passed unanimously.
Mr.
Riley suggested that staff provide the Executive Committee
with an historical analysis of what the NYSSCPA has contributed
towards employees’ health insurance premiums in prior years.
Staff agreed to do so.
With
regard to dental insurance, Ms. Kincaid moved to approve
participating employees’ payroll deduction of $19.69 per
month towards their coverage. Ms. Fierstein seconded the
motion. The motion passed unanimously.
b.
Enhanced medical benefit and employee contributions
Mr.
Grumet noted that a prior administration initiated and approved
medical premium discounts for employees who had family medical
insurance coverage. He said that although employees could
no longer opt for this discount, four long-time employees
continued to benefit from the discounts, at a cost to the
Society of approximately $10,000 per year.
A discussion
ensued regarding the apparent unfairness to other employees
who could no longer avail themselves of the discount. The
Executive Committee also discussed the impact on the four
employees of removing the discount immediately. A committee
member suggested that any removal of the discount be “phased
in” so as to provide the affected employees with sufficient
notice and opportunity to adjust their respective insurance
portfolios. This suggestion was well-received.
Mr.
Falbo then moved that the medical premium discount be removed
effective as of the next open enrollment period in 2007,
and that the affected employees be immediately notified
of the impending removal. Mr. Stubbs seconded the motion.
After discussion, the motion was unanimously approved.
c.
Compensation in lieu of Medical Insurance Benefit
Mr.
Woehlke noted that occasionally an employee points out that
his or her spouse’s employer provides health insurance which
covers (or could cover) the employee. The employee then
asks if the NYSSCPA would be willing to pay them in cash
the employer portion of their health insurance. An alternative
on this request occurs where an employee seeks to receive
payment of the employer portion of the medical insurance
to reimburse him or her for COBRA coverage being purchased
while the employee is new to the organization. An employee
might choose to pay the COBRA coverage if he or she preferred
it to that offered by the Society.
Mr.
Woehlke said that to date, requests have been granted in
only one instance; however, staff was seeking guidance from
the Executive Committee on whether the approach could be
taken generally, or whether staff should curtail the one
instance in which this was currently taking place.
After
discussion, the Executive Committee agreed by consensus
that any payments to employees in lieu of medical insurance
contributions should be avoided.
d.
Limit on Employer-Provided Group-term Life Insurance
Mr.
Woehlke summarized limits currently in place on employer-provided
group term life insurance for employees. He presented a
suggestion by senior staff that the Executive Committee
place a $200,000 ceiling on life insurance provided by the
Society. He noted that this would permit employees the
opportunity to purchase insurance over the ceiling up to
the maximum permitted by the group-term life insurance provider.
This would mean that the Society would continue its practice
of providing insurance at its cost up to 2˝ times an employee’s
earnings plus $10,000 for employees earning up to $76,000,
while employees earning over that amount would be provided
insurance coverage at a ceiling amount of $200,000 but be
permitted to purchase additional coverage at the employee’s
cost.
The
Executive Committee discussed the issue then directed staff
to provide additional briefing materials on the topic. By
consensus, the Executive Committee postponed any action
on the topic until its February 7, 2007 meeting.
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