MINUTES OF THE
RETIREES? HEALTH BENEFITS COMMITTEE
September 14, 2011
MEMBERS PRESENT: Mary Stranger, Jack Kinsman, Annie Clark, Billy Watson,
Ray Massey, Tom Barron (ex-officio).
TRUSTEES ABSENT: None.
OTHERS ATTENDING: Shirley Mathis, Human Resources Analyst; Camry Blaising and
Carrie Arnold, representing benefits manager Northwestern Benefits Corporation
of Georgia;
GUESTS/SPEAKER: None
CALL TO ORDER AND ATTENDANCE REPORT:
Chair Mary Stranger called the meeting to order and took the attendance for the
meeting.
MINUTES OF THE PREVIOUS MEETING:
Minutes from the August 3, 2011 meeting were accepted by unanimous vote of the
committee.
AGENDA AND DISCUSSION:
Referrals:
Committee members were provided by mail and email a Committee contact list.
Walgreen?s contract issues with Express Scripts, Inc.
Committee discussed the issues that included a request by Walgreen?s for a
higher compensation level for filling prescriptions than what Express Scripts
pays to their other network pharmacies. It was recognized that higher costs
are ultimately passed on to members of the health plan through higher
premiums. The consensus of the Committee was that they had no interest in this
issue as there is a sufficient number of other network pharmacies of Walgreen?s
leaves the network.
Northwestern Medicare Eligible health plan renewal presentation and discussion.
Northwestern presented the Medicare Advantage renewal to the Committee,
advising that BCBS requested a 14.3% rate increase that was reduced to 6% after
Northwestern went to market with competitive quotes being received from Humana.
In Retiree Premium dollars (75% of total premium) the final BCBS quote
increases retiree monthly premium from $135.02 to $143.12. The Humana quote
for an almost identical plan was $136.50.
Optional Plans were offered by both BCBS and Humana as follows
Please note that Option 1 and 2 are independent of one another (either/or) and
not combined.
The Committee discussed network issues and disruption with the Northwestern
representative. Horizon physician group is a concern but Humana is in what
they believe will be successful contract negotiations with Horizon now. The
disruption is a concern for the older retirees and those in nursing homes that
may have a difficult time with any type of change. The Committee felt that the
savings offered by Humana was not worth the disruption and voted unanimously to
stay with BCBS and to schedule a called retiree meeting to discuss the optional
plans.
Northwestern offered to prepare a one-page plan summary showing the straight
renewal and the 2 options as a discussion tool and will attend the called
retiree meeting with the Committee. Committee member Jack Kinsman will ask the
Retiree Association president to call the meeting.
The Committee requested for a copy of renewal presentation to be sent to
Council. Northwestern will forward an electronic version to Tom Barron for
this purpose.
After the retiree meeting, the Committee will call a special meeting to vote on
the plan option recommendation that they will take to Council on either 9/27 or
10/11 at the latest. The Committee would like to be on Mayor's agenda for this
presentation if possible
Old Business
The Committee set the next meeting date for November 9 at 10AM at Gallops to
discuss the dates of future meetings.
New Business
None.
There being no further business the meeting was adjourned.
Attachments
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