Harry: Mr.
Harry: Chairman.
Jacob: OK, thank you.
Jacob: The first item is approval of the agenda and I would like to move the health insurance renewal presentation to 8A and the budget update to 8B so that we could spend more time on the budget update hopefully than the insurance.
Jacob: So I would propose that amendment to the agenda.
Jacob: Are there any other changes from staff Miss McCoy?
Harry: No changes, Mr.
Harry: Chair.
Jacob: OK.
Jacob: Can I have a motion with that amendment as proposed?
Harry: Move to approve as amended.
Harry: Second.
Jacob: Councillor.
Harry: Beta.
Jacob: You're now.
Harry: Host of the.
Jacob: Meeting.
Jacob: OK, OK.
Jacob: Thank you.
Jacob: OK.
Jacob: I'll second.
Harry: I'll second the motion, Mr.
Harry: Chair.
Jacob: OK, we have a motion by Councilwoman Villarreal and a second by Councilwoman to Romero Works.
Jacob: All those in favor say aye.
Jacob: Or do we need to do a A roll call?
Harry: Yes, Sir, we have to do a roll call vote on every roll thing.
Harry: I'm sorry, Councillor Romanabeta.
Jacob: Yes.
Harry: Councillor Signi Lindell, Yes.
Harry: Councillor Carroll Romero Wirth, Yes.
Harry: Councillor Renee Villarreal Yes.
Harry: Councillor Jamie Cassette Sanchez Yes.
Harry: Motion passes.
Jacob: OK.
Jacob: Our next item then is approval of the consent agenda.
Jacob: Are there any items that we're going to pull from consent to be discussed?
Jacob: Is there a motion to approve the consent agenda move?
Harry: To approve 2nd, 2nd.
Jacob: OK, we have a motion by Councilwoman Lindell and a second by Councilwoman Villarreal.
Jacob: Can I have a roll call please?
Harry: Yes, Sir, Councillor Mana Beta.
Jacob: Yes.
Harry: Councillor Signal Lindell?
Harry: Yeah.
Harry: Councillor Romero Werth or Carol Romero Werth.
Harry: Yes.
Harry: Councillor Renee Villarreal?
Harry: Yes.
Harry: Councillor Jamie Cassette Sanchez?
Harry: Yes.
Harry: Motion passes.
Jacob: OK.
Jacob: That moves us to approval of the minutes, the regular Finance Committee minutes of March 30th, 2020.
Jacob: Are there any changes from staff?
Harry: No changes from staff, Mr.
Harry: Chair.
Jacob: OK.
Jacob: Are there any changes from the committee?
Jacob: Is there a motion?
Harry: Move to approve second.
Jacob: OK, we have a motion and a second.
Jacob: Can I have a roll call please?
Harry: Chair Roman Romano Beita.
Jacob: Yes.
Harry: Councillor Signe Lindell, Yes.
Harry: Council Councillor Carol Romero Wirth Yes.
Harry: Councillor Renee Villarreal Yes.
Harry: Councillor Jamie Costa Sanchez Yes.
Harry: Motion passes.
Jacob: OK.
Jacob: So then that will bring us to our presentation and recommendations.
Jacob: We will first have a presentation on the City of Santa Fe Health Insurance renewal Aon Consulting.
Harry: Mr.
Harry: Chairman, can I get a spelling of Aon, please?
Jacob: Capital A, then small letter O and small letter NAON.
Harry: OK.
Harry: And may I ask for the for the presentation to be emailed to me please?
Jacob: Yes, we will do that.
Jacob: Thank.
Harry: Thank you.
Jacob: OK.
Jacob: I believe Miss Montano, will you be making the presentation?
Harry: Yes, I'll take the lead.
Harry: And then I've got Todd Burley Elizabeth.
Harry: His last name spelling is Burley.
Harry: Thank you.
Harry: That was Todd.
Harry: He is our senior financial manager in our office and he will probably help to address a few of the slides.
Harry: So everyone who has the the presentation, I'm going to begin on slide 3.
Harry: This is just an overview of the summary.
Harry: You know the the ask is to renew your contract with Cigna.
Harry: Your as a reminder you are a self funded program and as such your medical renewal has three pieces.
Harry: You have your administrative costs that you pay Cigna to administer your plan, provide customer service, pay your claims and then you have the stop loss piece.
Harry: This is the insurance to protect the city against any large claims or an excess amount of claims.
Harry: And then you have the money you set aside to pay for claims as a self funded program.
Harry: So your administrative costs are are a 5.8% increase.
Harry: The stop loss is a nine percent increase.
Harry: And then overall with what we projected for claims increase, we're looking at an overall 9.4% increase.
Harry: We'll go into a little bit more in depth into these numbers.
Harry: Your dental program is also self funded.
Harry: The that plan is running really well.
Harry: So at this time we're recommending no change in the funding to that program.
Harry: If we move to slide 4, this gives you an overview of the cost.
Harry: Now this is the total cost of your program.
Harry: So this includes what the city of Santa Fe contributes towards the cost and what the employees also contribute if they are contributing to any of the programs through their payroll deductions.
Harry: So you can see in line 2, we have your medical program cost in Column B.
Harry: This is the estimated current cost for the 2019-2020 plan year.
Harry: Column C would be the total projected cost for the 20/20/21 plan year.
Harry: Column D shows the percent difference and Column E is the dollar amount difference between what you're currently paying per year to what it would go up to.
Harry: Mr.
Harry: Chair and done.
Harry: Just curious if you could share the screen as to what you're talking about if possible so that online YouTube folks will know what you're referring to since it is a public document.
Harry: Sure, let me select my screen to share.
Harry: Don, can I ask two questions, Mr.
Harry: Chair?
Jacob: Yes, go ahead, Councilwoman Romero Ward.
Harry: So I assume that this is the cost of renewal with the plan as it is.
Harry: This is without making any changes that are selected late that are outlined later, correct?
Harry: That is correct.
Harry: And then also this is these, the cost of renewal is current and is there any notion that it might change or between now and when we actually renew?
Harry: No, we went through and did it.
Harry: We went back through, looked at your claims to update everything with more current claims information.
Harry: And so we don't expect any changes from what we're presenting today.
Harry: OK.
Harry: Thank you, Mr.
Harry: Chair.
Jacob: OK.
Harry: Mr.
Harry: Chair.
Jacob: Yes.
Harry: Council is to ask questions as we go through the slides or at the end or if we have questions on a specific slide.
Harry: What's the?
Jacob: I I think let's ask on a specific slide.
Jacob: Yeah, but I can't see everybody.
Jacob: So just like you've been doing just.
Harry: OK.
Harry: I know John, I know you're trying to find the view other that looks great.
Harry: I do have a question on stop loss, but I'll wait till you get to that section.
Harry: Thank you.
Harry: OK, so when this first row is your total medical plan cost, so it contains your fixed cost, your stopwatch insurance cost and then the amount of money you're putting aside to pay claims.
Harry: CNC current spend is roughly 20 million, a little over 20 million projected to to go up to 21 million, 937.
Harry: So it's a 9.4% increase of and it's a difference of 1.8 million, almost 1.9 million in the blue we broke out.
Harry: So you could see the difference between what is going towards your fixed class, which includes the administrative cost that you paid a Cigna and your stop loss and then what you're putting aside for funding to pay towards claims.
Harry: So you can see that make up row 5 is your dental costs.
Harry: Again, we projected the plan is running really well.
Harry: We actually are projecting costs to be down.
Harry: So we're we're recommending that you make no changes to your funding.
Harry: So that way you're able to contribute to your reserve, your life insurance.
Harry: There is when you see these numbers here, you're going to see a big, a pretty big percentage increase.
Harry: But what we did is in working with the HR team is look at a benefit change and a a structural change compared to what you're doing with your life insurance today.
Harry: I have in a later slide, I have more information about that.
Harry: So we'll hang on to that thought and we'll get back to it when we get to that slide.
Harry: And then your dependent life.
Harry: Then beginning on row 10 through 14.
Harry: These are all voluntary programs.
Harry: So these are programs where the employees pay 100% of these premiums.
Harry: The vision is having a slight increase of 3%.
Harry: It's a annual difference of $5657.