MADISON
TOWNSHIP BOARD OF TRUSTEES
SPECIAL
MEETING-HOSPITALIZATION
The meeting was
called to order by Chairman Brotzman with the following people present: Chief
Del Calzo, Mr. Advey, Mr. Graham, Mr. Anderson, Mr. Brotzman, Mr. Wayman.
Mr. Brotzman stated
that the only purpose of the meeting was to discuss health insurance.
Mr. Advey stated
that regardless of any decisions being made at this meeting, there is a
resolution that is required by the township to provide health care insurance
policies for township officers and employees.
RESOLUTIONS:
Mr. Wayman presented a motion to approve
Resolution #11-090 a Resolution to
provide health care insurance policies for township officers and employees. Mr.
Anderson seconded. Roll Call:
All Ayes
Mr. Advey wished to discuss the hospitalization proposed change of service
provider. Mr.
Advey then noted that he received an email today at 3:25pm from Sean Sprouse,
Burnham & Flowers, stating that the Medical Mutual of Ohio (MMO) network is
98-99% equivalent to our current Anthem coverage. He stated that with our
current coverage, those employees covered could go to the downtown University
Hospital or even the Cleveland Clinic downtown. He stated that one of the
differing points with the MMO coverage is that the downtown University Hospitals
campus is not in the MMO network, unless it is an emergency. He stated that
searches can be done on the MMO’s website to see what doctors and hospitals are
covered by their network.
Mr. Advey stated
that he gave copies of the Medical Mutual of Ohio - COSE proposal and noted that
the township will have to join COSE with the annual dues being $371.00. He
stated that he handed out the census information based on the FormFire
applications that were filled out by employees and he noted that the number of
eligible employees is thirty-eight (38) and the number enrolling is thirty-six
(36).
Mr. Advey then
discussed the optional plans MMO COSE is offering. He noted that with Anthem we
currently have a $3,000 single/$6,000 family deductible and the Burnham & Flower
debit card for that deductible at a monthly premium of $28,627.00, which is to
go up to $34,066 with the renewal. He stated that one option, which is not the
one Sean is recommending, is the P1500/3000 (Aggregate). This plan has a $1,500
single/$5,000 family deductible with the Burnham & Flower debit card for the
deductible and is at a monthly premium of $31,540.00. The next plan is
P2500/5000 (Embedded) and has a deductible of $2,500 single/$5,000 family with
the Burnham & Flower debit card for the deductible and is at a monthly premium
$27,135.00. Mr. Advey stated the plan Sean Sprouse recommends is the P3000/100
(Embedded), which has a deductible of $3,000 single/$6,000 family with the
Burnham & Flower debit card for the deductible and is at a monthly premium of
$25,221.00 plus a monthly administrative fee of $25.00, which is typical. He
noted that we have to add approximately $332.00 due to one person being added.
He stated that Sean looked into going into the $4,000/$8,000 and $5,000/$10,000
deductibles but said that our exposure is way too high. He stated that our
maximum exposure on the plan is $189,000 but if we went into the higher
deductibles would be $542,000 for the $5,000/$10,000 deductible and the
$4,000/$8,000 would be a $520,000 exposure. Mr. Advey then pointed out the
current premiums again and noted that the P3000/100 Embedded costs less by about
$8,513.00, per month, which comes out to approximately $102,156.00 per year.
Chief Del Calzo asked if the MMO P3000 monthly premium is actually less than what we are currently paying. Mr. Advey stated that it is.
Mr. Advey explained
the embedded versus the aggregate plans. He stated that the aggregate the whole
family will combine to reach that $6,000 deductible. But with the embedded plan;
one family member could reach the $3,000 deductible and the plan will pay them
at 100% then the other family members have to reach the remaining $3,000 to be
covered at 100%. Mr. Wayman asked if the other family members don’t use the
remainder what would happen. Mr. Advey stated that the township doesn’t pay it
out and there is no need for the hospitalization to kick in. He also stated that
the deductibles for the debit card are the same. He noted that if an employee
goes out of network, that is their choice and they are responsible for that
cost. He stated that the prescription drug card differs in that with Anthem the
co-pay would apply first (10/25/40, etc) to the out of pocket expense but with
the MMO, once the deductible is met, the prescription is paid for. Mr. Advey
then discussed the unit costs noting that currently the Anthem single cost is
$341.00 and the proposed Anthem single cost is $405.00 but the MMO single cost
is $336.00. He then outlined the costs for couple, parent & children, and family
whereas the MMO costs always come out below Anthem.
Mr. Anderson asked
if this is equivalent or better than what we currently have. Mr. Advey stated
that it is easily equivalent and in some ways better. Mr. Anderson asked when
open enrollment was. Mr. Advey stated that he thought it was sixty days, thirty
before and thirty after. Mr. Anderson asked why we took so long to get FormFire
going and Mr. Advey stated that he was going with Sean’s recommendations to see
what was coming from Anthem. Mr. Anderson asked if Mr. Sprouse is easy to work
with, Mr. Advey stated that he is superb. Mr. Anderson’s only concern was with
the contract employees. Mr. Graham stated it appears to be apples to apples with
the exception of taking UH out of the mix but the policy seems to be similar and
the cost is less. Mr. Anderson asked when it takes effect, Mr. Advey stated that
it takes place January 1st and everyone needs to retain their current
debit card. Mr. Advey stated that a welcome letter will be coming in from MMO to
be used until the ID cards arrive. Mr. Wayman asked Mr. Ackerman, a township
police officer, what he thinks of the plan. Mr. Ackerman asked if it was only
the UH downtown that is not in network and if the satellite offices, such as in
Mentor, are. Mr. Advey stated he couldn’t say with absolute certainty but that
his own oncologist is listed in MMO. Mr. Ackerman asked if Cleveland Clinic is
still an option, Mr. Advey stated that the Cleveland Clinic is the primary. Mr.
Wayman asked Mr. Klco for his opinion, he says it seems like apples to apples
and seems like it could be worked with. Mr. Advey stated that he spoke to Cindy
Girdler, Chamber of Commerce, and she noted that we are receiving a discount by
going to COSE as a Chamber member and she noted that there are many members of
the Chamber that have been with Anthem that are now going to MMO. Mr. Ackerman
asked if Anthem gave any reason for the rate increase. Mr. Advey stated that
they didn’t specifically say but noted that they were initially going to
increase it twenty-six percent (26%) but came down another six percent (6%) when
faced with us going to MMO.
Mr. Advey requested
a motion to approve Madison Township employee hospitalization coverage effective
January 1, 2012 with Medical Mutual of Ohio proposal number 2654611 at an
approximate monthly cost of $25,246.89. He noted that this is approximate due to
one employee’s spouse being added for an additional $341.42.
Mr. Anderson
presented the motion to approve the Madison Township employee hospitalization
coverage effective January 1, 2012 with Medical Mutual of Ohio proposal number
2654611 at an approximate monthly cost of $25,246.89. Mr. Wayman seconded. Roll
Call: All Ayes
Mr. Advey requested
a motion to join COSE in conjunction with the Medical Mutual of Ohio health plan
at an annual cost of approximately $371.00. Mr. Advey stated that this discount
is due to the township’s membership in the Madison/Perry Area Chamber of
Commerce, which is worth about $1,000.00 less in the premium. Mr. Anderson asked
why it increased from the $240.00 that was originally typed on the meeting
agenda. Mr. Advey explained that he spoke to Brian, at COSE, who took their
normal rates and subtracted the amount of our dues at the Chamber and added the
$25.00 administrative fee.
Mr. Wayman presented
a motion to join COSE in conjunction with the Medical Mutual of Ohio health plan
at an annual cost of approximately $371.00. Mr. Anderson seconded. Roll Call:
All Ayes
Mr. Brotzman
reminded everyone that the next meeting is on January 3rd, 2012 at
7:00pm
With no further
business to come before the Board, Mr. Anderson presented a motion to adjourn
the Regular Meeting at 4:53 p.m. Mr. Wayman seconded.