Note:  These minutes should be considered a draft until they are approved by the Board of Aldermen at the July 3, 2007 meeting.

 

Work Session I

BOARD OF ALDERMEN

CITY OF PARKVILLE, MISSOURI

June 19, 2007

 

ATTENDEES:

 

Ward 1 Alderman Jim Brooks            -    Present

Ward 1 Alderman Deborah Butcher   -    Present

Ward 2 Alderman David McCoy       -    Present

Ward 2 Alderman Gia McFarlane      -    Present

Ward 3 Alderman Marvin Ferguson   -    Present

Ward 3 Alderman Jeffrey Bay           -    Present

Ward 4 Alderman Gerry Richardson  -    Present

Ward 4 Alderman Brian Atkinson      -    Absent w/prior notice

 

ALSO PRESENT:               City Administrator Joe Turner

                                             Community Development Director Sean Ackerson

                                             Project Manager Dan Koch

                                             City Collector Loretta Stevens

                                             Lt. John Moyer 

                                             City Clerk Claudia Willhite

                                             Administrative Assistant Deb Hammond

                                             Mike Miller from Miller & Associates, Inc.

 

MEDIA PRESENT:            Jared Hoffman, Sun Publications

 

WORK SESSION TOPIC: HEALTH AND DENTAL INSURANCE PLAN OPTIONS

 

Mayor Dusenbery opened the work session at approximately 5:40 p.m. This work session was scheduled to review and discuss the city health and dental insurance plan options. 

 

City Administrator Joe Turner reviewed the process to get to this point and his policy report, pointing out that the exact amount the city will incur will vary with the number of full-time employees and choice of single or family coverage selections.  Mr. Turner’s policy report explaining the cost breakdown, which includes a renewal rate spreadsheet comparing United Health Care, Coventry, Great West and MARCIT rates, is attached to these official minutes.  Mr. Turner said that since United Health Care’s dental insurance does not cover orthodontics, the recommendation for dental insurance was going to be to continue with Delta Dental.

 

Mr. Turner introduced Mike Miller of Miller & Associates, Inc. who has met with the finance committee and advised them to choose Great West Insurance.  Mr. Miller said he first should point out that the figure being used for the renewal option with United Health Care of $18,805 was provided the city chose to change the dental insurance from Delta Dental to United Health Care’s dental coverage, so if the city chose to remain with Delta Dental, United’s quote would go up.  Mr. Miller said that rising insurance rates and larger deductibles are a concern to everyone and he understood that some employees might not be happy with this choice to change to Great-West.  He added that if he were an employee, he might feel the same, but acting in a financial advisor capacity, he has to recommend the Great-West option.  Mr. Miller noted that this option offers an opportunity to save possibly 5 to 10% per year.  Most insurance companies base the rate they charge on the group’s claims history but since Great-West is partially self-funded there is an aggregate stop loss factor that can save the city money.  He said typically only one year in five may exceed the aggregate.  He said, like most insurance providers, Great-West has a website with a broad menu of information and current provider list. 

 

Mayor Dusenbery noted there were some employees in attendance and she invited any questions or comments.  Lt. John Moyer said he is only one of the employees whose doctors will be completely removed from his insured coverage and there are no hospitals within a 30-mile radius of his home that accept Great-West.  Mr. Miller explained that anyone covered under Great-West with a genuine medical emergency could go to any hospital for immediate emergency room care.  He said that after that emergency care, if hospital admittance were recommended, a determination would be made as to possible transfer to a hospital in the Great-West network.  Discussion followed regarding who would be financially responsible for that transfer to another hospital.  Mr. Miller said he would check on the answer to that and let Lt. Moyer know.  Mr. Miller added that HCA is currently negotiating with Great-West to address the lack of network hospitals in certain coverage areas.  One of the aldermen asked if North Kansas City Hospital is in the network.  Mr. Miller said those negotiations are in process and he expects North Kansas City (NKC) to be in the network by July 1, 2007.

 

Mr. Miller said that Bill Stuart of NKC Hospital told him that the ball had been dropped by NKC and the Chairman of the hospital board directed NKC to get the deal done.  Mr. Miller said that Bill Stuart came from a hospital in Texas where they had no problems with Great-West Insurance.

 

Brief discussion followed regarding differences in coverage between United Health Care and Great-West and what would happen if NKC is not signed up to be in the network by July 1st.  Mr. Turner said the recommendation is to continue with United Health Insurance if NKC is not included in the Great-West network and he noted that was a condition stated in the cover contract ordinance.

 

Mayor Dusenbery noted it was time to close for the next work session topic scheduled to begin at 6 p.m.  She requested that next year this insurance planning and negotiation begin much earlier to allow more time to consider the options and make an informed decision.

 

At 6:00 p.m. the board moved from the meeting room to the boardroom where the presentation set-up was ready to begin for the State Economic Development Presentation.

 

Submitted by:

 

________________________________

City Clerk Claudia Willhite