2005-05-09 - Finance Committee - Minutes Board or Commission: ❑ Finance Committee
Document Type: 0 A e
g nda 0 Minutes
Meeting ate: 05/09/2005
Type of Meeting: ❑ Special Meeting
The Village of Buffalo Grove Finance Committee met May 9, 2005 to discuss matters related solely to the
proposed changes to the Village's health care program. Those in attendance were:
Elliott Hartstein, Jeff Braiman, DeAnn Glover, Jeff Berman, Steve Trilling, Bruce Kahn, and Brian Rubin.
In addition, Bill Balling, Bill Brimm, Ghida Neukirch, Art Malinowski, Scott Anderson, and Jan Sirabian.
Lastly, Peter Wright of Wright Benefit Strategies, Inc.
This was a meeting to continue the Committee meeting of May 2, 2005. Based on further discussion, it
was recommended that the Village pursue, beginning July 1, 2005, a self-insured health insurance
program as outlined by Wright Benefit Strategies, Inc. This recommendation will require the Village to
sever its relationship with the Intergovernmental Personnel Benefits Cooperative (IPBC) as of July 1,
2005. In addition, an insured option (with CIGNA)will not be considered at this time.
At the Committee's request, Wright went through his final recommendations and discussed matters of
benefit design flexibility into the future, how risk between programs (PPO/EPO)will be evaluated, how the
stop-loss program has been marketed (including his recommendations) and the time line for July 1 st
implementation. As for the stop-loss, it was affirmed that both firms that have been deemed to have
submitted the lowest qualified quote for such coverage will write the stop loss without consideration of
potential "lasers". The future availability of stop-loss coverage was discussed and it was Wright's firm
belief that such coverage will always be available for the group but further cautioned about the impact of
large losses. It was noted for the Committee that while we had been takling about stop-loss at the
$75,000 level (individual) at the aggregate, stop-loss will kick in at 125% of expected paid claims.
There was a level of discussion on how Wright Benefit Strategies receives its "compensation"from
placing the stop-loss. Wright noted that his firm will receive a minor"override" at time of final placement.
There was discussion on how compensation for consulting and placement will occur in the future and this
will be discussed between staff and Wright with a recommendation brought back to the Committee.
On some other matters:
- The Committee approved of the draft self-insurance fund policies and authorized that the draft be
moved to final format for adoption.
- Correspondence will be prepared for distribution to the staff to explain the process, where we are now
and where we will need to be (and consider) into the future on matters of health care.
The meeting concluded at 7:30 pm