Travis County Commissioners Court
May 19, 2009,
Item 24
24.
revised language: consider and take appropriate action on the following recommendations regarding group benefits health plan fiscal year 2010 rates and issues: 1.
basic life rate renewal; 2.
long term disability renewal; 3.
option to renew all three dental plans with no increase for fiscal year 2010; 4.
no rate increase to retiree health care premiums for fiscal year 2010; and e.
set 4:30 p.m.
start time for employee hearing set for June 17, 2009, in Commissioners courtroom.
move approval of e.
>> second.
>> stetting of the Commissioner's court public hearing.
>> -- , yes,.
>> for employees.
okay.
all those in favor.
this passes by unanimous vote.
should we start with a now?
>> yes, sir.
and I think we can probably get through these relatively quickly and completely --
>> good luck.
>> [laughter]
>> and complete this particular item for this year and move on.
but our basic life renewal, we had brought a rate to you last week and we were able to negotiate, in fact, a better rate and daniel, do you want to talk about that.
>> I would like to produce our broker for union life and she can explain the rates that we did negotiate.
>> thank you.
>> basically the current contract has a formula for each year and based on that formula the underwriting had come back with a renewal rate of 1.3 -- or .135, but after much discussion and arm twisting with the underwriter in light of the current economic situation, we were able to get that reduced down to a .12 rate.
that is still an increase from the current rate, which is .103, so it's about 13.2% rate increase.
the reasoning behind that is that, over the last four years, we've got to go back two years.
two years ago, we increased the basic life for the employees from 25,000 to 50,000.
at that same time, we had a rate hold, but we've experienced 169% loss ratio in the basic life over the last four years, so from that perspective, even though there is a marginal increase of 1 point -- or -- excuse me, 13%, it is still relatively small compared to the 169% loss ratio on that.
>> and pbo has asked us to state that it be about 35,000 on the general fund instead of 36,000 that I sent out on my e-mail, and that was cindy math and now pbo math is 35,000.
>> second.
>> seconded a motion.
>> so for those who have life insurance over and above what the county provides, they will experience a similar increase?
>> no.
no change in the rate on the supplemental life.
>> okay.
>> so this just --
>> there are basically two areas we are running with negative experience and that is the long-term disability or basic life, the other ones we are not running with negative experience.
>> just related to the basic life insurance that the county provides to employees.
>> okay.
discussion?
all those in favor?
this passes by unanimous vote.
okay.
>> judge, b is long term disability of renewal.
we thought that last week we would have an increase in that, but thanks to denmansore and mr.
clunch, we were fortunate enough that we will see no increase in the long-term disability and that is an insurances that paid for by employees and that will be still 56-cents per 100 of monthly salary, and this is 100% voluntary.
>> approve.
>> second.
discussion?
all those in favor?
this passes by unanimous vote.
>> okay.
c, there were some questions on the option to renew the three dental plans and cindy, I think, will be able to respond to this question.
>> yes, last week we put forth that we did not need a rate increase for the guaranteed rate this year for the three dental plans.
Commissioner Davis had some questions on the yearly maximum, the 1500 maximum on two of the dental plans and inquired what it would cost and what is the process for increasing those.
i did check with metlife and in order to -- I heard back over lunch Commissioner, and in order to raise the 1500 to, say, $2,000, it would be between a 5 and 6% increase.
there is also a process to be followed that, since it is a fully insured product with the Texas department of insurance, the filings and whatnot, so what I thought is maybe we might look at that for next year, maybe take one of the p plans and have a higher maximum as a buy-up plan but for this year we are running a little short of time to get it all accomplished.
>> so metlife would still be the carrier provider, but you -- the process that you would have to go over here --
>> right.
it's --
>> and --
>> and it is their plan they have to file it with --
>> yes, sir, file it with the state and of course, I guess the increase in premiums for those persons that like to have more than just a 1,500-dollar calendar year coverage on that, cap, rather, that would increase I guess a premium but there will be several options, and I don't know if they are going to look at 2,000 or 2500 or 3,000, I don't know what the break out will be --
>> we will ask them for different things to look at.
>> yes.
and see what will be out of pocket after the cap has been reached beta calendar year.
>> yes, because if you changed everyone in that plan will pay the higher premium but we will ask them for several different options so we can have more time to look at and decide what would be if best for the employees (n
>> and it is something that would be good to also -- this coming public hearing, you know, when we look at things with the pieces on some of the health ben -- with the employees on some of the health benefits and stuff like that, that is something to have a topic, get additional input and it is worth going into but I have heard there is some talk about increasing the capper calendar year and the range of that cap, from 1500 to 2 -- what range, I don't really know.
>> we certainly welcome comments.
>> okay.
thank you.
>> move approval.
>> second.
discussion.
looking at c, dental plans.
all those in favor.
this passes by unanimous vote.
d.
>> the last item for the court to consider is the proposed rates for fy '10 for retirees both under the age of 65 and over the age of 65.
you have in your backup rate sheets and the recommendation is for no increases in rates.
i will take the opportunity, also, because it does -- it is relevant to this particular item to inform the court that the benefits committee met yesterday and we reconsidered the proposal from the committee on long term retiree program, and tying that to the length of service that an employee is with Travis County and that having a relationship to the contribution.
and we were in discussions with the auditor's office on the language and what the committee decided is that perhaps that -- the committee voted to table that proposal until December of this year, come back with plenty of time early next year, make the presentation to the court once the language has been aligned and is appropriate and acceptable to all parties, make that proposal in order to provide us enough time to educate employees on what those guidelines would be and to make sure that everyone understands that our benefits are adopted on an annual plan.
there is no guarantee, either for current employees or for retirees that they will receive healthcare benefits.
the proposal was just guidelines but we would like to take a little bit more time and bring that to you for consideration in fy '11 as opposed to fy10, so in lieu of that, we are recommending no increases to retiree rates for either those under 65 or over 65.
>> move approval.
de.
>> second.
discussion?
all those in favor?
this passes by unanimous vote.
>> thank you very much.
>> thank you.
>> thank y'all.
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Last Modified:
Tuesday, May 19, 2009 2:00 PM