| EC07
– F – 1
Health and Dental Insurance Renewals
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Mr.
Sinegal provided background on the insurance renewal process
and timing. With regard to timing, he explained that the
Society’s health and dental plans had calendar year
terms and, therefore, their respective renewals coincided
with carriers’ traditional year-end rate filings for
ensuing plan years. This coincidence often resulted in difficulty
obtaining both renewal and competing quotes earlier than
mid-November. He stated, however, that staff was exploring
the possibility of changing the plans’ terms to mid-year
renewals, which would alleviate timing issues prevalent
with a year-end renewal process. He said staff would bring
a proposal back to the Executive Committee for consideration
sometime in the first half of 2008.
Mr.
Sinegal then noted that there was a new broker for the employee
health and dental plans, the Willshire Group, which was
affiliated with the Society’s Checkpoint HR, the organization
to which HR had been outsourced. He said that Willshire’s
brokers worked closely with the Society’s general
agent, PPI Benefit Solutions, to obtain renewal quotes from
the incumbent Health Net as well as from the following carriers:
GHI, HIP, Aetna, Oxford, Cigna and Blue Cross.
Mr.
Banerjee then walked the Executive Committee through a comparison
of the quotes. He noted that while Aetna dental offered
a renewal on the same terms and conditions at no premium
increase, Health Net originally offered a renewal with an
overall increase in premium of 11.8%. Two alternative plan
designs were also presented by Health Net, reflecting proposed
premium increases of 3.03% and 2.94%, but entailing larger
participant out-of-pocket expenses.
Mr.
Banerjee pointed out that all competing quotes except GHI’s
offered significantly higher premium increases ranging from
14.29% to 29.44%. GHI, in contrast, offered a plan with
a 2.5% increase. Although GHI was competitive with both
Health Net alternatives, it was noted that a carrier switch
would entail an additional administrative burden and likely
create disruption to participants who could have to change
doctors and re-enroll family members in order to accommodate
a new carrier network.
Mr.
Sinegal then outlined staff’s proposed recommendation
to accept Health Net’s renewal on the same terms and
conditions at an overall premium increase of 11.8%, while
absorbing the increase. Mr. Grumet added that the increase
was within the Society’s budget for the remainder
of the fiscal year and that, in light of the 3% average
staff salary increase awarded in June, many staff members
might end up with a net income reduction if too large a
share of the health insurance increase were passed on to
them.
A discussion
ensued regarding the Health Net plan alternatives as compared
to the existing plan. It was the consensus of the Executive
Committee that alternative one, reflecting a 3.03% increase,
appeared reasonable in light of the specific increases at
the point of service and the fact that the Society traditionally
reimbursed employees the full cost of the hospitalization
co-payment, which itself was increasing by $250. In response
to a question, Mr. Sinegal noted that he knew of only one
request for reimbursement of the hospital co-pay since May
2007.
Ms. Kinsella moved to provide health insurance to the staff
during 2008, continue with Health Net as the insurance provider,
and use the Health Net plan configured to result in a an
overall increase of 3.03%, while continuing the practice
of reimbursing staff the cost of the hospitalization co-payment.
Ms. Fierstein seconded the motion. The motion passed unanimously.
Ms.
Fierstein then moved to renew the dental plan with Aetna
as presented, and Ms. Kinsella seconded the motion. The
motion passed unanimously.
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