001[Music] Doney la. [Music] Heat. Heat. [Music] Oh, [Music] yeah. [Music] Heat. [Music] Heat. [Music] Heat. Heat. [Music] and um get to that location. Called to order agenda approval. Do we have a a vote to approve the agenda as it sits? Motion to move. Second. >> Second. >> Okay. All in favor? >> I oppose. Okay. Updated health insurance information, Sonia. >> Okay. So, you have before you um a snapshot of our current health uh key plan. Um the top section is our current 2025 plan. Um what uh uh staff would like for the committee to make a decision on is what plan we are going to use going forward. Uh the second um set of data that you see is our 2026 key plan what the anticipated premium increase is. And then the third quadrant is
002what the calendar year 2026 healthkeepers plan would be. So, what we need from the the finance and facilities uh committee tonight is a recommendation of which of those bottom two plans to choose so that we can take it to the full school board for uh approval of those plans. That way we can get the open enrollment materials prepared for our worthy employees um in due time before open enrollment starts. >> If you'd like, I will I can walk you through the two plans a little bit. Is that okay? >> I you did that for me already. Okay. >> I'm just letting uh the other two catch up. >> Sure thing. >> When you're comfortable. >> What's the difference? difference is a few dollars a month to the employee. >> If you take a look at
003the >> if we go with healthers, if you take a look at the the middle for monthly employee cost and in the um in the third line um for just an employee employee only if we stay where we're at, it will rise from 4228 per month to 4439. And if we go with housekeepers, it's 43 and 13 cents. So it's a little over a dollar less per month. And if you go a little bit higher, let's say employee plus family, it's going to come from Okay, hold you you. Okay, look. >> I'm looking, but I'm saying how does it semly cost is 2220. >> Yes, sir. Um, that is we get paid twice a month. So that would >> But wouldn't the monthly be double that? >> Yes, sir. With some a little rounding. >>
004Okay. >> Yeah, there's a little It doesn't always end right on the specific day. There's a little rounding added. >> Okay. So, $44 a month versus $43 a month >> basically. And if you go a little bit higher for play plus family, it rise it raises it increases from 50647 to 53179 with the current plan would be 51660. So that's like $15 less if we go to the new plan. My concern is the type of coverage that the people are currently receiving from everything everyone that I've talked to. Um, apparently Healthkeepers is a not as um friendly plan. It doesn't have as much um um you're going to from a PO to an HMO basically >> and you have fewer providers. I'm sure this is going to be something that is more beneficial for the
005the insurance company. Uh and I think that this is going to in some ways harm some of our some of our employees. my opinion. >> Okay. I think the minor increase is worth the peace of mind and knowing that you're keeping the same plan and the same benefits versus going to something >> that could very well not be >> for, you know, we save them a dollar a month just on, you know, on let's say the single employee plan. We save them a dollar a month, but we that dollar could mean longer weights, >> picking a different doctor, um different prescription plan. I think if we they would pay the dollar to to maintain what they have. That's what that's now. >> Yeah, I sense the same thing. I agree with that. A dollar is
006going to make a difference. >> Of course, it's $15 for the employee and family. >> I think it's worth it. I think it's fair. But if you look at the second page, which we can't, you know, you you need to look at what the total savings to the division is, u I personally want to save money wherever, and I'm sure everybody else does, too. We want to save money wherever we can. We're looking at a half million dollar savings by going to healthkeepers. Sure, that helps our budget, but I'm I don't think I'm alone when I say that I wish that we could pay every every penny of healthc care coverage for our employees. And I would rather see the budget increase. >> Okay, explain explain this to me. That's >> act like I'm in
007kindergarten. Well, we pay what the what the um school district will pay is is when you add it all up for total employee costs the plan just to change this over uh to from what we have now key to healthers our fee the the school district Lynchburg city schools in savings will be a half million dollars. So, as we make this decision, we have to go into this knowing that we're we're uh forfeiting half million dollars in savings. >> Where does the half million dollars >> reduce premium reduced premiums? Our costs are reduced overall through all the 7,000 well not 7,000 not talk about kids. Uh of all the employees that we have, >> Mhm. we pay a lion share of of uh of the premiums >> that's going to increase along with the portion
008that is assessed against the the employee. So the employees increase is slight. The district's increase is considerable. >> Okay. >> That's what I want to I want to I just want to understand. >> Sure. >> So the employee goes up a dollar but we go up a half a million. >> Yep. explain how >> just premium costs. >> So, >> yeah, somebody >> Good afternoon, committee. Uh, thank you for having me back. I'm Heath Thomas with Mark 3 employee benefits. Uh, so the the projected roughly half a million dollars of savings is based off of the expected claims spend for next year. So, the way that >> it's claim spend, not premium. So, but the way you're paying the claims through the premium funding that you have here essentially, so what's happening is you're collecting
009employee premiums and then you're putting in employer dollars to fund the weekly draft that comes out of Anthem. Okay? And that's a a claim spend. The vast majority of the 17 or so million dollars that you're spending annually is in claims. You have a very small percentage of fixed cost um which is the premium that the insurance company charges you. So the the claims is where you're going to potentially save. So if you had the same claim under the key network as the healthers network, it's about a 5% differential in the payback to the provider. It's a better discount that Anthem has in order to save the school system and potentially the employees money at the time of claim. So there are some differences to your point. So, so before you go any further, >>
010so that's the reason that some of the current providers won't go with healthers because they get a lower percentage of pay. >> That's exactly correct. And so, >> and that's why it makes it more difficult for employees to find the type of providers that they feel comfortable or need. >> So, yes, sir. So if you look at the the overall breadth of of the school system specifically, not including count the city, it's about a 2% differential of the providers. So 98% of the providers that you're using currently, these are actively people using claims are in the network under health. And so there would be no difference in that 98% of claims. The 2% of claims is in a couple different areas. One we talked about last time is uh physical therapy and chiropractic. there's a
011physical therapy provider that's coming in network and that number that 2% should actually go down probably closer to one and a half or one. So it's going to be a very small percentage of the of the providers. Now what does that mean in terms of claims? It is about 3% of the total spend. So if we look at the 17 or so million dollars of spend, there was about 35 just under $35,000 of claims that if processed last year would have been out of network under health. So out of $17 million, 34 $35,000 of that would have been out of network. The other 17.02 would have been in network. And so the the theory is is that if you're going to have the vast majority of your claims and we could save 5% of that
012savings uh of roughly $10 million of medical, you got about seven of pharmacy, six or seven, uh then that would be beneficial to the school system obviously and to the employees if they're having to pay a negotiated percentage of that bill. >> Okay. So my next question is this. What is our budget in what have we budgeted for insurance? >> Um We actually budgeted what our premium was this past year. So we will I will budget. >> So we budgeted >> we didn't plan for any increase when we did the budget. >> So current year budget was the 17 million. We have a little over 17 million on the current year budget. what I will do when we when I prepare. So, not to be too wordy, but only six months of this current plan
013is in this current fiscal year and then there's a six months then the other. So, it >> it depends on a different fiscal year. >> Okay. But what's the total >> for the six months of this year and the six months of next year did we budget for insurance? >> We budgeted the premium that was quoted to us which >> when we came into this I I can pull up that amount if you'd like. >> Um you can talk amongst yourselves while I do that. I just want to know. So because protected plan savings if the if the current plan keeps us in budget I understand it's saving us 57 but is it saving us 57 against the budgeted amount or against >> projected costs correct? >> Yeah. It's it's the savings would come in
014the future. It's nothing that would it would be assuming the plan goes into effect. you begin to start to see savings in January as those >> But I'm saying we put something in the budget projections that we need X amount of money for insurance. >> That's correct. >> So what did we put in there and how does that compare to what both of these compared to what we re asked for? Um, I I am looking it up for you right now, but just so you know, it's broke out among like 5,000 lines. So, it's not like one amount of money that we pay on that, but I can tell you um what our anticipated plan was. >> So, may I say something while she's looking? >> Okay. >> Is that okay, >> please? >> All
015right. I hope this doesn't generate more questions for you. >> Well, we want to make the right decision. >> Yeah. Um, so one of the things that as Sonia's looking that we've been um been talking about because it's you heard the first meeting that we had about this and I had concerns about transitioning to healthers plan and um and it is complicated. She had to explain it to me as well of like how does that work because I was like Sonia is all the 500,000 in one fiscal year and she's like no because our plan year starts in January. So if there and it's going to depend on like this gentleman said our our claims. Um, but one of the things that we've been looking at was how to make it work within our budget
016to and of course monitor those claims because we're only going to be looking at for this fiscal year that we're in half of the fiscal year when this plan year starts in January and be able to keep the key plan but working closely with Mark III looking at some other options in terms of um I'm not saying this is the case will be the case for us but there are a lot of other divisions that get into the local choice choice and then you have a lot of you know more flexibility with buying power seeing are there other options and things for us as we can start preparing now for the next plan year and maybe staying in key care so that we can keep this benefit for our employees um I mean because it
017makes it I think it makes a big difference when people are coming to a division or going to an employer health insurance is costly in general so having a plan um that's A solid plan is important, I believe, when attracting and retaining people, but also we were looking at how we could go ahead and maybe start facilitating some of those conversations with Mark III or um with Anthem or if there other providers so that this gives us time so we're not having this type of conversation in October that we can start this preparation right now to look into next year what we would be doing. So, as you will recall, last January or last November when we were having this conversation, we uh the the school board voted an 18.5% increase to play catch-up from
018the years prior that we didn't do an increase. So, that amount uh that was budgeted for that was 16,862,720.73. So that's how much we had budgeted for this year. Um and and that included six months of last fiscal year and six months of this fiscal year. >> Trust me, I understand that part. You don't have to keep explaining. Understand that the two different they end on two different fiscals. >> Yes, sir. >> But we still can annualize either one >> at any time. >> Sure. >> We can always pull out a 12 month segment at any time. Am I right? So we can always talk in square numbers that this 12-month period whether it's from January to December or whether it's from July to June is still 12 months. So what did So we budgeted
019for 12 month period 16. So we we will be going up about a million dollars if we stay with key >> 16.8 million. So it's more like 500,000. Yes. 17746US 168 is 900,000. Okay, not using a calculator. just rounding numbers. And we're saying that we would save another right next to it is that number. And just in Sonia's defense, you did say that you wanted to be have it explained to you like you're a 5-year-old. >> Yeah. >> So, she was doing that, >> right? >> Well, I still want to round a year is a year whether Yes. No, you can talk fiscal years, but that really you still can tell me what a year is. >> Sure. >> We usually take half this fiscal year, half that fiscal year, add them together, that's a
020year. What does the year premium cost? So, we budgeted 168. So, already with either one of these plans, we're over what we budgeted, >> right? >> Okay. That's the first number that I was trying to get to to for my mind. So, we're already over what we budgeted. So we underbudgeted >> in Sure. >> No, >> we didn't underbudget. >> I don't I don't think we underbudgeted. These are just the costs that increase due to inflation due to >> Okay. >> That's just the way it is. >> Okay. >> And if to get that 507, that's a difference between these two numbers. >> I know that. >> Okay. Still doing a 5-y old thing. >> What does what does that 500,000 get our employees? you felt you weren't comfortable with Healthkeepers. Did the 500 change
021your mind and who let's get the let's save the 500 and and put our people on health? >> No, it didn't. And that's why I was saying Miss Jams and I, we've had several conversations even before that last meeting, but even after that last meeting about what are some ways that we can streamline things within our budget, continue to monitor the claims so that we can continue to add this same keep this same benefit for our employees with the understanding that our work has to start now for the next plan year >> so that we can go ahead and tap into Mark 3. And hopefully you would all be able to help us certainly uh navigate that process and see if local choice is an option. See if there are other ways that we can
022have better buying. >> You're looking at >> from now to the end of our fiscal year with this if we stayed with key care and then going into the next starting to look at other options. >> Well, I want >> other potential. >> I want us to start looking at other options >> now. But I'm saying we wouldn't be able to actually >> do it until >> till this time next year because your next calendar year it would be January of what 27 at that point. >> Yes, ma'am. >> So we're going to spend we're going to choose one of these plans to get through the rest of this fiscal year and the rest of the calendar year and then maybe look at the next calendar year going with somebody new if we can find
023something that's better for the division and the employees. >> That's correct, sir. Yes. >> All right, y'all. >> Yes. Yes. So, so we >> we're playing with the same deck now. >> Yes. And I believe Sonia and I are still in agreement as we were earlier before we walked in here that we'd like to remain with the key care for the employees. >> Okay. >> Which would start calendar year for January. Um but with the understanding that we're going to have to streamline some things, make sure we constantly monitor this, monitor those claims and then um and make adjustments as we need to so that we can keep the same benefit for our employees but start our work now for the next calendar year so that we can explore options and be able to come
024in with options versus saying this is the only plan. >> Am I correct? >> Yes, ma'am. >> Okay. >> Don't get me wrong. I'm all about saving money. Oh, you know me. >> But some Yeah. >> So some sometimes, you know, the cheapest way is the cheapest way. But anyways, I'm I don't know whether we should bring this. Do we bring this to the whole board? Should we just say this is what we're our recommendation is and let the full board decide? >> Well, I think the the finance committee should should decide make a decision on what our recommendation is, then allow the whole board to vote on decision. >> I make a motion that we stay with key. Second. >> I'll go ahead. >> Second. >> All right. We're all in favor. >> Super.
025>> Stick with key care and then actively pursue future because is Anthem the only company that Mark III deals with, but everybody else is higher. >> We We're a broker, so we can shop the market for anything. >> Okay. It's time for the market to get >> Yeah. And I believe that uh the contract with Anthem uh is I want to say it's up at uh 1127. Um so I I believe that we would probably be looking at doing a bid for next year anyway. >> Okay. >> Um >> great. >> So I'll get >> That's great. You don't even have to say anything else. So that's what I need to hear. So >> and we'll be working with the school system and the city to put that bid out and help procure results back.
026>> Absolutely. Sounds great. >> So, I was just asking Mr. Depal, which he said it was okay if we can put it on the agenda for tonight under consent, but Miss Jamie's of course will all be here to answer any questions. So, would they have to amend the agenda tonight? >> I can put it on there. >> Okay. >> I mean, they can still amend it at the beginning, but I can go ahead and >> Okay. >> slide it on there now. >> Okay. >> Thank you. Thank you very much. >> I just want to do it right. >> I can email it to you. >> Oh, yeah. We definitely need to have it in there and then add it to the facilities agenda, too. So, it's all posted. >> Okay. >> Yes, ma'am. >>
027Email it. >> Okay. So, we got this covered. >> Yeah. >> Okay. Next item is committee members comments. Any comments from committee members? Good. You all good? Okay. The next finance and facilities meeting is going to be on the 14th of next week at 3:30 p.m. Same bat time, same bat channel. Okay. We're adjourned. [Music]