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HomeMy WebLinkAbout1996-07-31 adj0003 6 July 31, 1996 (Adjourned Meeting) (Page 1) A joint meeting of the Board of Supervisors and School Board of Albe- marle County, Virginia, was held on July 31, 1996, beginning at 5:00 p.m., in Room 235, County office Building, McIntire Road, Charlottesville, Virginia. The Board of Supervisors' meeting was adjourned from July 29, 1996. BOARD OF SUPERVISORS PRESENT: Humphris, Mr. Forrest R. Marshall, Perkins and Mrs. Sally H. Thomas. Mr. David P. Bowerman, Mrs. Charlotte Y. Jr., Mr. Charles S. Martin, Mr. Walter F. ABSENT: None. SCHOOL BOARD PRESENT: Mr. John E. Baker, Mr. R. Madison Cummings, Jr., Mrs. Susan C. Gallion, Mr. Jeffrey D. Joseph, Mrs. Karen L. Powell and Dr. Charles M. Ward. ABSENT: Mr. Stephen H. Koleszar. OFFICERS PRESENT: County Executive, Mr. Robert W. Tucker, Jr.; Deputy County Executive, Mr. Richard E. Huff, II; County Attorney, Mr. Larry W. Davis; Deputy County Attorney, Mr. Mark Trank; Assistant Superintendent for Instruction, Ms. Diane T. Ippolito; Assistant Superintendent for Support Services, Mr. Frank E. Morgan; Director of Human Resources, Ms. Juliet Jennings and Deputy Director of Human Resources, Mr. Robert Brandenburger. OFFICERS ABSENT: School Division Superintendent, Dr. Kevin C. Castner. Agenda Item No. 1. The meeting was called to order at 5:02 p.m., by the Chairman of the Board, Mrs. Humphris and Chairman of the School Board, Mrs. Powell. Agenda Item No. 2. Executive Session: Pending Litigation and Legal Matters concerning Insurance. At 5:03 p.m. motion was offered by Mr. Bowerman that the Board adjourn into executive session pursuant to Section 2.1-344(A) of the Code of Virginia under subsection (7) to consult with legal counsel and staff concerning pending litigation and legal matters concerning insurance. The motion was seconded by Mr. Marshall. Roll was called and the motion carried by the following recorded vote: AYES: NAYS: Mr. Bowerman, Mrs. Humphris, Mr. Marshall, Mr. Martin, Mr. Perkins and Mrs. Thomas. None. Motion was also offered by Mr. Cummings that the School Board adjourn into executive session pursuant to Section 2.1-344(A) of the Code of Virginia under subsection (7) to consult with legal counsel and staff concerning pending litigation and legal matters concerning insurance. The motion was seconded by Mrs. Gallion. Roll was called and the motion carried by the following recorded vote: AYES: Mr. Baker, Mr. Cummings, Mrs. Gallion, Mr. Joseph, Mrs. Powell and Dr. Ward. NAYS: None. ABSENT: Mr. Koleszar. (NOTE: Mrs. Powell left the meeting at approximately 6:07 p.m., therefore, Mr. Baker became acting Chairman for the School Board.) Agenda Item No. 3. Certify Executive Session: The Board of Supervisors reconvened into open session at 6:28 p.m. Motion was made by Mr. Bowerman to certify by a recorded vote that to the best of each Board member's knowledge only public business matters lawfully exempted from the open meeting require- ments of the Virginia Freedom of Information act and identified in the motion authorizing the executive session were heard, discussed or considered in the executive session. The motion was seconded by Mrs. Thomas. Roll was called and the motion carried by the following recorded vote: 000317 July 31, 1996 (Adjourned Meeting) (Page 2) AYES: NAYS: Mr. Bowerman, Mrs. Humphris, Mr. Marshall, Mr. Martin, Mr. Perkins and Mrs. Thomas. None. The Albemarle County School Board has convened an executive meeting on this date pursuant to an affirmative recorded vote and in accordance with the provisions of the Virginia Freedom of Information Act, and Section 2.1-344.1 (D) of the Code of Virginia requires a certification by this School Board that such executive meeting was conducted in conformity with Virginia law; the Albemarle County School Board hereby certifies that, to the best of each member's knowledge, (I) only public business matters lawfully exempted from open meeting requirements by Virginia law were discussed in the executive meeting to which this certification applies; and (ii) only such public business matters as were identified in the motion convening the executive meeting were heard, discussed or considered. Motion to this effect was made by Mrs. Gallion and seconded by Mr. Cummings. Roll was called and the motion carried by the following recorded vote: AYES: Mr. Baker, Mr. Cummings, Mrs. Gallion, Mr. Joseph, Mrs. Powell and Dr. Ward. NAYS: None. ABSENT: Mr. Koleszar. (Mr. Martin returned at 6:31 p.m.) Agenda Item No. 4. Joint Meeting with School Board. Item 4a. Health Care Proposals. Mr. Brandenburger said the Health Care Review Committee has completed a review of the County's medical and dental plans for 1996-1997. Part of this review process included seeking negotiated bids for these services from insurance carriers. Medical insurance is one of the two major benefits funded by the Boards and also is important to employees and their families. The focus of the review has been to strive to offer employees medical and dental plans that provide quality health care, management and administration in a cost effective manner. Last year the County requested proposals from carriers for medical and dental plans. The competitive market resulted in savings in fixed costs as well as a change in benefit design for the medical plan. Trigon Blue Cross/Blue Shield continued as the County's medical plan provider but there was a major change in plan design. The County retained a 3-tier medical plan, but replaced the Comprehensive 500 plan with a managed care plan called Point-Of-Service. The premium structure resulted in a significant reduction in premiums for most of the medical options. Approximately 50 percent of employees enrolled in the Trigon Point-Of-Service (POS) plan during the open enrollment last September. The County is now nine months into its current plan year and the "year-to-date" financial information indicates the KeyCare II & III (PPO -Preferred Provider Organization plans) claims exceed premiums while claims expenses for the POS are below premium revenue. Overall, the current plan-year is projected to have a surplus of about $100,000, however, the County usually incurs a large number of claims during the summer months and thus the plan may not sustain this level of projected surplus. Delta Dental was retained as the County's provider for dental services under a fully insured plan with a two-year rate guarantee. Mr. Brandenburger said this spring the County solicited Request For Proposals (RFP) for 1996-1997 medical and dental plans. The initial proposals were rejected and a second RFP was initiated which delayed the process by seven weeks. He then reviewed the evaluation criteria included in the RFP. The County received five dental proposals and four medical proposals. An analysis of the proposals by the Committee was completed with assistance from the County's consultants. This analysis resulted in the Committee's recommen- dation to continue with the current dental plan/carrier, as the RFP responses were not as competitive. The Committee's analysis further resulted in the selection of two medical plan proposals for further negotiation. oooa July 31, 1996 (Adjourned Meeting) (Page 3) The Committee strongly recommends continuing with a minimum reserve of 20 percent of projected claims. Based on projected claims cost for 1996-1997 the 20 percent reserve should be a minimum $750,000. During the previous two years the medical plan closed with a surplus. Last November the Boards approved a refund of two months premiums to employees from the reserves and further agreed to fund a wellness screening from the medical reserves. The medical reserves are currently $1,765,355, of which $260,580 were to be available for the wellness program. The County's current rates were projected to fund this year's plan and create an additional reserve for wellness initiatives. Nine months into the plan year the County is projecting to end the year with a $100,000 surplus. Mr. Brandenburger then summarized the following Committee Recommendations for the medical plan: Reserve: Continue to maintain a minimum reserve of 20 percent of claims (i.e. $750,000); Number Of Plan(s): a 3-tier medical plan with no major reductions in benefits; Retirees: Continue to set retiree premiums at the same rate as the active employee. Continue to monitor retiree claims costs for any adverse impacts; Carrier: Select QualChoice of Virginia/Blue Ridge Health Alliance Inc., as the insurance carrier; Rates: QualChoice's proposal projects claims near current levels and therefore the committee recommends retaining premiums at current levels. The Board contribution is based on 90 percent of the QualChoice III single subscriber rate. The Board contribution was budgeted at $2,000 for FY 1996- 1997. Based on the proposed rates the Board contribution would only be $1,860 per full-time subscriber; Fundinq: Retain a self-insured plan but purchase a 110 percent Aggregate Cap; and "Specific" Stop Loss: Retain the "Specific" Stop Loss at $100,000. The following are recommendations from the Committee for the dental plan: Funding: Retain a fully insured plan; Carrier: Retain Delta Dental as the insurance carrier; Rates: Since Delta Dental's two-year rate guaranteed negotiated last year was more competitive than any new proposal, the recommendation is to exercise that two-year rate guarantee; and Plan: Continue the benefits offered under their Basic Services. Mr. Brandenburger said in summary, the Committee recommends the selection of QualChoice of Virginia/Blue Ridge Health Alliance Inc., as the provider of medical insurance and Delta Dental as the provider of dental insurance. The proposed rate~ are shown in Appendices 3 and 4. (Copies on file in the Clerk's Office.) Mrs. Thomas asked about the option to renew and what the County is guaranteed. Mr. Brandenburger said the County specifically asked the vendors if multiple-year plans would be offered or at least what costs would be guaranteed. The claims expense, which historically could change significantly, is another issue. He said vendors could not guarantee, except possibly in the second year, which claims they may be willing to underwrite. Basically, there is an option to renew under either proposal with some assurance of the fixed costs and with a specific interpretation of how the claims portion of liability would be addressed. In most cases,the vendor will look at the individual claims experience over a ten-month period and run projections from that information for renewals. Mrs. Thomas asked if this meant employees could predict their premiums for next year based on the group's experience this year. Mr. Brandenburger said that was correct. 000319 July 31, 1996 (Adjourned Meeting) (Page 4) Mrs. Thomas asked if the Wellness Plan was affected by the decisions made from this meeting. Mr. Brandenburger said the Wellness Plan was not directly interfaced, but the County went to a ~POS" plan this year, one feature was managed care. There are provisions in the ~POS" for various wellness related benefits which are part of that plan. The County has asked for the same proposal from QualChoice. Mr. Marshall used as an example an employee who had a child in college, covered under this program, and needed a primary care physician, hospital or drugstore in another city or state. He asked what the guidelines or policy would be under QualChoice for coverage. Mr. Brandenburger said students who are covered under their parents insurance and live out of the area, must still choose a primary care physician. If the student had an urgent need, (i.e. sore throat, etc.) and did not go to the primary care physician, there would be some additional costs; unless they chose the QualChoice II or III program which gives greater selection to physicians. The patient may choose his/her own physician, however, if that physician is out of the network, there would be additional expenses incurred. Mr. Ward asked why the $100,000 amount was chosen for the "specific stop loss" clause. Mr. Brandenburger said this clause relates to individual claims that a person may incur, such as triple-bypass surgery, where the cost may greatly exceed an average claim. There has always been this clause in the County's plan. The amount was determined by trying to weigh the cost of additional insurance with the probability of how many times the insurer would exceed that amount. Motion was then offered by Mr. Marshall to select QualChoice of Virgin- ia/Blue Ridge Health Alliance, Inc., to provide medical care for the plan year 10/1/96-9/30/96 and Delta Dental as the dental carrier,'with rates as shown on the Appendices 3 and 4. (Copies on file in the Clerk's Office.) The motion was seconded by Mr. Bowerman. Roll was called and the motion carried by the following recorded vote: AYES: NAYS: Mr. Bowerman, Mrs. Humphris, Mr. Marshall, Mr. Martin, Mr. Perkins and Mrs. Thomas. None. Motion was also offered by Mrs. Gallion, seconded by Dr. Ward, to select QualChoice of Virginia/Blue Ridge Health Alliance, Inc., to provide medical care for the plan year 10/1/96-9/30/96 and Delta Dental as the dental carrier, with rates as shown on Appendices 3 and 4. (Copies on file in the Clerk's Office.) Roll was called and the motion carried by the following recorded vote: AYES: NAYS: ABSENT: Mr. Baker, Mr. Cummings, Mrs. Gallion, Mr. Joseph, Mrs. Powell and Dr. Ward. None. Mr. Koleszar. Item 4b. Other Matters Not Listed on the Agenda. There were none. Agenda Item No. 5. Adjourn. At 7:05 p.m.,and with no further business to come before the Board of Supervisors or the School Board, the meeting was immediately adjourned.