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HomeMy WebLinkAbout1998-07-27 adj 000085 July 27, 1998 (Adjourned meeting) Page 1 A joint meeting of the Board of Supervisors and School Board was held on July 27, 1998, at 6:30 p.m., Room 235, County Office Building, McIntire Road, Charlottesville, Virginia. The meeting was adjourned from July 15, 1998. BOARD OF SUPERVISORS MEMBERS PRESENT: Mr. David P. Bowerman, Ms. Charlotte Y. Humphris, Mr. Forrest R. Marshall, Jr., Mr. Walter F. Perkins and Ms. Sally H. Thomas. ABSENT: Mr. Charles S. Martin. SCHOOL BOARD MEMBERS PRESENT: Mr. John E. Baker, Mr. R. Madison Cummings, Jr., Ms. Susan C. Gallion, Mr. Jeffrey D. Joseph and Mr. Stephen H. Koleszar. ABSENT: Ms. Diantha H. McKeel and Dr. Charles M. Ward. OFFICERS PRESENT: County Executive, Mr. Robert W. Tucker, Jr.; County Attorney, Mr. Larry W. Davis; Division Superintendent, Dr. Kevin C. Castner; Deputy County Attorney, Mr. Mark Trank; Director of Human Resources, Mr. Michael Thompson; Deputy Director of Human Resources, Mr. Robert B. Brandenburger; Assistant Superintendent for Support Services, Mr. Frank E. Morgan; Assistant Superintendent for Instruction, Ms. Diane T. Ippolito; and Director of Building Services, Mr. A1 Reaser. Agenda Item No. 1. Call to Order. At 6:30 p.m., the Board of Supervisors was called to order by the Chairman, Mr. Marshall. The School Board was called to order by the Chairman, Mr. Baker. Mr. Koleszar offered the motion, seconded by Mr. Joseph that the School Board move to its Agenda Item %4, Board of Supervisors' business. Roll was called and the motion passed by the following recorded vote: AYES: Mr. Koleszar, Mr. Baker, Ms. Gallion, Mr. Cummings and Mr. Joseph. NAYS: None. ABSENT: Ms. McKeel and Dr. Ward. Mr. Baker said representatives from the Luck Stone Corporation were present to receive a resolution of appreciation and plaque for their service to the County. Present were: Mr. Charles S. Luck, IV, President and Chief Operating Officer; Mr. Joseph Andrews, Jr., Vice President - Corporate Development; Mr. James F. Birch, Vice President - Western Division, and Ms. Barbara T. Robertson, Regional Sales Director - Western Division. Mr. Luck said Luck Stone is a family-owned business his grandfather began 75 years ago. The company and the County enjoy a good relationship, and consider Stone Robinson Elementary School a good neighbor. He recognized Mr. A1 Reaser as a driving force in building that relationship. He also expressed appreciation for both Boards' support, and said this is a prime example of industry and education in the County working cooperatively. The following resolution was presented: Resolution of Appreciation WHEREAS, the Luck Stone Corporation has served the Albemarle County Community and Albemarle County School Division as a cooperative partner from the business sector; and WHEREAS, the Luck Stone Corporation has demonstrated considerable cooperation and community spirit with its adjacent neighbor, the Albemarle County Stone-Robinson Elementary School, by working closely with the school; and WHEREAS, the Luck Stone Corporation has been a true and ardent supporter of educational, after-school and volunteer programs sponsored by Stone- Robinson Elementary School; and WHEREAS, the Luck Stone Corporation was the recipient of the first Annual Stone-Robinson School Good Neighbor Award in 1997; and WHEREAS, the Luck Stone Corporation demonstrated exceptional generosity by donating 9.3 acres of property to Albemarle County for use by the Stone-Robinson Elementary School as an instructional and recreational facility for the school and community; NOW, THEREFORE, BE IT RESOLVED that on this day of July 27, 1998, the Albemarle County School Board and the Albemarle Board of County Supervisors hereby recognize and thank the Luck Stone Corporation 00005 3 July 27, 1998 (Adjourned meeting) Page 2 ~ .~..~. for its exemplary service to the Albemarle County community. Agenda Item No. 1. Health/Dental Contract' 1998-99. Mr. David Morgan, principal with Slabaugh, Morgan, White and Associates from Richmond, Virginia, presented the Boards with the results of his firm's review of the County's health care program options. Specifically, his firm's charge was to: 1) bid out medical and dental programs, 2) conduct an on-site review of QualChoice and 3) participate with the Employee Advisory Committee and appropriate focus groups. A memorandum from the Health Care Executive Committee has been sent to the County Executive and Superintendent whioh outlines the current year's process and recommendations for Health and Dental Insurance. It should be noted that this year's process emphasized a strong communication component including a number of focus group meetings held with various employee groups to ascertain their thoughts regarding the County's health and dental coverage, as well as an Employee Advisory Committee that was used to disseminate information up and down throughout the organization regarding the prooess. Lastly, an employee survey was used to ascertain the current level of satisfaction with the current carrier and to solicit issues, if any, with the County's current coverage. The procurement process used to solicit proposals identified selection criteria that included, in addition to price, such items as, breadth of the provider network, claims paying ability, financial stability, coverages offered, etc. Mr. Morgan said in the analysis for health care, the finalists were Trigon and QualChoice of Virginia. Trigon was not recommended by the Health Care Executive Committee due to its inability to provide coverage equal to or greater than what employees currently are provided today. Further, it was determined that Trigon's HMO product, which most closely resembled Qual- Choice's plan, did not include the University of Virginia Hospital or any of the University of Virginia doctors in their provider network. As a result of this procurement process, the Health Care Executive Committee has recommended that the health care contract for 1998-99 be awarded to QualChoice of Virginia at the following rates: EMPLOYEE PREMIUM QC II QC II QC III QC III POS POS Current Proposed Current Proposed Current Proposed premium premium Premium Premium Premium Premium ACTIVE E~PLOYEE Employee $69 $78 $31 $35 $10 $10 Employee + minor $148 $167 $75 $85 $30 $34 Employee + spouse $353 $410 $238 $269 $126 $142 Employee + family $435 $492 $296 $334 $165 $187 RETIREES Employee $240 $281.72 $202 $238.75 $181 $213.75 Employee + minor $319 $370.75 $246 $288.75 $201 $237.75 Employee + spouse $534 $613.75 $409 $472.75 $297 $345.75 Employee + family $606 $695.75 $467 $537.75 $336 $390.75 There are no funds anticipated to be used from the medical reserve account and the recommendation includes a provision that the QC II and QC III plans no longer be offered for new enrollment but be retained for those employees currently enrolled in those plans for next year. Retirees, under this recommendation, would continue to pay the same total premium as active employees with retirees set to pay the entire cost for the plan. The Committee also recommended the County continue to monitor retiree claims costs for any adverse impacts to the plan. This recommendation contemplates a Board contribution of $2,445 per full-time employee and retains the prescription drug coverage as it existed at the beginning of the plan year. This would rescind the recent partial formulary changes implemented by QualChoice last spring, thereby allowing participants to have prescription drugs filled and covered by the plan as prescribed by their doctor~ By way of comparison with the local job market, staff analyzed the employer contribution by both the City of Charlottesville and the University of Virginia for their health care plan. The City of Charlottesville currently contributes $2,851/employee annually and the University of Virginia currently contributes $2,556 for single coverage and $5,088 for family coverage for its employees, as compared to the Board contribution of $2,445/employee for Albemarle County. Single coverage for City employees is current SO/month and 00008'7 July 27, 1998 (Adjourned meeting) Page 3 $6/month for University of Virginia employees. Should the Board choose to increase its contribution so as to reduce the monthly premium for employees, each additional $5 per month contributed ($60 per year) would cost approximately $24,534 for local government and $84,532 for the School Division. A $5 increase in the Board's contribution would lower the employee only contribution from $10 per month to $5 per month and would lower the increase on the family plan from $22 to $17 per month on the family Point of Service Plan ($187/month to $182/month). Mr. Morgan said the Health Care Executive Committee recommended that, for the 1998-99 Dental Plan, the contract be awarded to Delta Dental of Virginia to retain a fully-insured plan. The recommendation includes an option for all employees to select either the same plan as is currently offered (basic) with no change in benefits or a second plan (high option) which would add coverage for sealants at 80 percent and crowns at 50 percent, decrease the maximum annual benefit from $1,500 to $1,000 and increase the individual deductible for corrective services from $25 to $50. Those employees selecting the high option plan would do so strictly at their choice with no penalty if a small number of employees actually choose the high option. It should be noted that persons selecting the high option, however, must agree to stay in that plan for at least two years. Employees would not be allowed to opt into the high option plan, take advantage of the higher benefits and opt out of the plan the following year. This requirement was imposed as a condition of offering the plan by Delta Dental. The Board contribution for the dental plan is budgeted at $73 annually for full-time employees and the rates under this recommendation are as follows: EMPLOYEE PREMIUM BASIC PLAN Current Proposed HIGH OPTION Proposed Employee $5.91 $6.41 $14.38 Employee + one $13.52 $15.11 $28.62 $28.64 $32.42 $51.33 Employee or more Mr. Morgan said his firm spent most of one day on-site at QualChoice's headquarters evaluating the organizational structure, processes and abilities. They found no areas of immediate concern, and will continue to monitor QualChoice. The contract includes measurable performance standards. Ms. Thomas asked if the higher option for the dental plan decreases the maximum annual benefits. Mr. Morgan said the basic dental option has a $1,500 yearly maximum which would be hard to reach, given the limited coverage that is available. Therefore, the higher option has been restructured to maximize coverage, will save approximately three percent and keep rates down. Mr. Marshall mentioned a conversation he had the previous week with Mr. Nick Carter, regarding a $600,000 refund from QualChoice for not meeting the performance guarantees in the first year of the plan. The memo from the Health Care Executive Committee (on file in the clerk's office), indicates a refund of only $317,837 had been received this day. Mr. Huff explained the discrepancy in the figures. The check received today represented performance guarantees built into last year's budget audited by the insurance carrier, Lincoln National. Today's check was for $213,000, and the amount still outstanding is roughly $136,000. The amount is not QualChoice's responsibility under the contract, but, rather, Lincoln National's responsibility. Paperwork was delayed, but Mr. Huff said the refund should arrive soon. QualChoice guaranteed the refund would be paid. Mr. Marshall said since the County is self-insured, it is good the County is returning to the original prescription plan, which allows participants to have prescription drugs filled and covered by the plan as prescribed by their doctor, and which covers a wider range of prescriptions. As a pharmacist, his company received complaints from patients when they are given substitute drugs which doctors and patients believe to be inferior drugs. Nr. Koleszar asked what the role of the medical fund reserve will be regarding copayments. Mr. Morgan said actual claims and expenses exceeded the amount of revenue collected between the County and employee contributions. The reserve would be used to make up the difference. Mr. Koleszar asked if that meant there is a gap between what was funded and where reinsurance starts. Mr. Morgan replied the gap was ten percent. Ms. Humphris asked if the heading "Employee Premium" on the second chart should read "Total Monthly Premium'. Mr. Huff said it could be done either July 27, 1998 (Adjourned meeting) Page 4 000088 way, as it refers to retirees. Mr. Marshall asked if it is anticipated that in the future retirees will not be able to participate in the medical plan. He felt it was important that they be permitted to do so, and that it is of concern to older employees. Mr. Huff said whether retirees remain in the plan, as well as the rates they pay, will be up to the joint Boards. Referring to the local job market comparison provided, Mr. Joseph noted that the City of Charlottesville and the University of Virginia were used when comparisons were made to local businesses' benefits Plans. He suggested that local companies such as G.E. Fanuc or SPerry be uSed when making such comparisons. Ms. Thomas said Ms. Roxanne White had prepared a report which included comparisons between private and public sectors. Mr. Tucker said that, unfortunately, only broad figures, not specific ones, can be obtained from industries. Mr. Marshall said the County had a much better than G.E. Ms. Gallion disagreed, saying G.E.'s coverage is much better. Mr. Marshall said G.E. employees are limited as to where they can go for treatment, and his company does not accept those insurance cards. Mr. Joseph said he was referring to the amount the Board contributes to the benefits package as compared to private company contributions. Mr. Tucker will ask Ms. White to provide that comparative information to both Boards. Mr. Cummings asked if the 21.7 percent rate increase and the 22.4 percent total program cost increases are reasonable ranges, and whether they could be safely predicted for the future. Mr. Morgan said the figures are reasonable, and he is hopeful they will decrease into the single-digit range. He added that using this type of managed program should make the situation more stable in the future. Mr. Cummings said it would be helpful to have a rough estimate when makeing budget projections. Referring to comparisons with the local job market, Mr. Baker asked whether the $5.00 contribution increase is an observation, or whether it is included in the figures. Mr. Morgan said the increase reflects the Committee's recommendation, and he agreed with the recommendation of reducing employee premiums by $5.00. He noted that family coverage increased 22 percent this year, while individual plan conributions remained at $10. If premiums are reduced by $5.00 each, it would require an additional contribution of $24,534 from local government, and $84,523 from the School Division. Mr. Joseph asked how the increased contributions would be paid. Dr. Castner suggested they be paid out of the medical fund reserve. Ms. Thomas asked how that would affect the fund balance of the medical fund reserve, and Mr. Tucker replied that there would still be ample funds remaining. Ms. Thomas asked about investigating a "wellness" health plan which encouraged basic physical exams, fitness and preventative medicine. Mr. Huff said QualChoice pays for physicals, women's annual exams and well-babies' checkups. Mr. Baker said employees do not fully support this type of program because they object to mandatory exams and building the baseline data. Mr. Baker suggested using School Board reserves to decrease the employee contribution. Dr. Castner suggested using the medical fund reserve instead, since the money is available. That would give the School Board more flexi- bility with its own reserve as it moved into the school year. He agreed with the suggesti°n that the County should pay more toward premiums, because employees are upset at their salary increases having to go toward higher insurance premiums. Ms. Humphris asked Mr. Tucker if the $5.00 per moth contribution could comfortably come from the medical fund reserve. Mr. Tucker said the document provided showed the impact of various Contributions. Ms. Humphris asked what limits should be considered. Mr. Marshall said monies were available to easily reduce premiums by as much as $10, and Mr. Bob Brandenberger concurred. There are $1,500,000 in reserves at this time. However, he added that in future years the Boards would have to review the impact of doing so on reserves. Mr. Marshall, Ms. Thomas, Mr. Koleszar and Ms. Humphris agreed it would be possible to pay the additional $10 without having an adverse affect on medical fund reserves. Ms. Thomas advised the Boards that she had compared the County's benefits to the national norm, and that the County is in line. Mr. Koleszar added that it is standard practice to provide health insurance to employees. Tight budget years resulted in the employee having to pay premiums, but this should not occur if funds are available for the County to pay them. Motion was offered by Ms. Humphris, seconded by Mr. Perkins, to award the health care contract for 1998-99 to QualChoice of Virginia, with the rates as proposed and including the reduction of all premiums by $10. In addition, July 27, 1998 (Adjourned meeting) Page 5 000089 award the dental contract for 1998-99 to Delta Dental of Virginia with the rates as proposed. Roll was called and the motion passed by the following recorded vote: AYES: Mr. Bowerman, Ms. Humphris, Mr. Marshall, Mr. Perkins and Ms. Thomas. NAYS: None. ABSENT: Mr. Martin. Motion was offered by Mr. Koleszar, seconded by Mr. Cummings, to award the health care contract for 1998-99 to QualChoice of Virginia, with the rates as proposed and including the reduction of all premiums by $10. In addition, award the dental contract for 1998-99 to Delta Dental of Virginia with the rates as proposed. Roll was called and the motion passed by the following recorded vote: AYES: Mr. Koleszar, Mr. Baker, Ms. Gallion, Mr. Cummings and Mr. Joseph. NAYS: None. ABSENT: Ms. McKeel and Dr. Ward. Mr. Marshall thanked staff for all their efforts. Agenda Item No. 2. Other Matters not Listed on the Agenda. Mr. Baker said plans are being developed for the dedication of the Monticello High School. He then distributed a memorandum from the Monticello Dedication Planning Committee. When the plans are finalized, they will be forwarded to the Board of Supervisors. He said it is essential that County government officials and the Superintendent present the school to the community. He asked the Board of Supervisors to participate in the dedication ceremony. Dr. Castner said Mr. Reaser recently gave him a tour of the school and work is on schedule. They will meet the deadline of August 3, 1998, but there will be some work that will not be completed until after the school is opened. Mr. Marshall asked if the road will open on August 12, 1998. Mr. Tucker said that is unclear at this time. Mr. Baker said the School Board has been preparing a list of Board Superintendent's priorities for 1998-99, and the issues that caused them to surface. He provided a draft of the report to the Board of Supervisors. Once the final report is completed, it will be presented to the Board of Supervi- sors for discussion. Agenda Item No. 3. Adjournment. At 7:15 p.m., with no further comments, Mr. Marshall adjourned the Board of Supervisors' meeting until August 5, 1998 at 7:00 p.m. {Note: The School Board continued its regularly scheduled meeting.) Approved by Board Initials ~