Self-Insured Healthcare Trust Board Goodyear City Hall - La Jolla Vista Conference Room (2nd Floor) 1900 N. Civic Square Goodyear, AZ 85395 |
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CALL TO ORDER
ROLL CALL
- Present:
- Chair Michael Balsan; Vice Chair Wade Foster; Boardmember Jennifer Preyer-Bonton; Acting Finance Director Michael Shoemaker; Committee Member Kathleen Koncel
- Staff Present:
- Human Resources Director Lyman Locket; Total Rewards Manager Chi Herrington; Benefits Analyst Chanda Washington
- Attendees:
- Charile Broucek, Senior VP Brown & Brown; Paula Campbell, Benefits Consultant, Brown & Brown
| BUSINESS |
1.
APPROVE MINUTES
MOTION BY Chair Michael Balsan, SECONDED BY Committee Member Kathleen Koncel to APPROVE the Self-Insured Healthcare Trust Board meeting held on March 12, 2026
- AYE:
- Chair Michael Balsan, Vice Chair Wade Foster, Boardmember Jennifer Preyer-Bonton, Acting Finance Director Michael Shoemaker, Committee Member Kathleen Koncel
Passed - Unanimously
2.
Review, discuss and take possible action on setting rates for FY Plan Year for Medical and PPO Dental Plans
MOTION BY Committee Member Kathleen Koncel, SECONDED BY Chair Michael Balsan to APPROVE a 19.4% increase in the rates for the medical plan and a 5% increase for the rates for the PPO dental plan for FY2027 plan year.
- AYE:
- Chair Michael Balsan, Vice Chair Wade Foster, Boardmember Jennifer Preyer-Bonton, Acting Finance Director Michael Shoemaker, Committee Member Kathleen Koncel
Passed - Unanimously
Chair Balsan brought the second agenda item up on the discussion and possible action setting rates for medical and PPO dental plans. Lyman Locket thanked the committee for reassembling as the team intended to set rates at the prior meeting. Lyman explained the delay in setting the rates provided an opportunity to go back to the internal Self-Insured Healthcare committee and get their feedback on the larger increase. He advised the board that the recommendation is to move forward with the plan design change and increase the out-of-pocket maximums. This includes the board adoption of a 19.4% increase for our medical insurance and a 5% increase for our dental insurance.
Board member Kathy Koncel noted the 2023 plan year saw an increase in claims while 2024 plan year saw a decrease which is not something that would have been expected. Board member Koncel said if we considered the price increase over two years and average them it would be less of an increase that would be required.
Lyman informed the board that during the process of review the last renewal changes the stop loss quote came in less than anticipated which provides a 1.5% savings. He further explained there were two laser claims, and one has been removed from the plan, and the other laser was reduced which resulted in 1.5% savings. Lyman shared the understanding with the board to maintain the 19.4% increase and the 1.5% savings will allow the city to build the reserves back as the reserves were tapped into last year intentionally.
Board member Wade Foster asked for the adjusted out-of-pocket maximums for employees. Charlie Broucek from Brown & Brown went over the out-of-pocket maximum data. There was discussion on the benchmarking methodology used and the long-term thought is to get the city on equal playing field with the benchmark cities. Lyman added that the benchmark is taking the average of benchmark cities and coming up with an average of the out-of-pocket maximum the group felt was palatable given the landscape. For the PPO plans currently at $1000 individual out of pocket maximum and $2000 for the family out-of-pocket maximum, increases to $2650 and $5300. The HMO in-network plan shifts the out-of-pocket maximum from $1250 for an individual to $2900 and $2500 for a family to $5800. The HSA plan is currently $2750 for an individual and $4200 for a family and it would adjust the out-of-pocket maximum to $3950 for an individual and $5350 for a family. The approach to these benchmarks include evaluation and asking how the city can remain competitive looking at what needs to be done to mitigate costs given the high increase. There was a review of the number of members enrolled in each plan and discussion on the number of members that reach the out-of-pocket maximums.
There was discussion on the recommended increase and the impact on employees. Lyman shared there was consideration of the relationship with any kind of pay increase or projected pay increase for staff. In addition, he noted there are three population bases impacted by this change, the employee population base will result in a net positive due to the proposed pay increase, the retiree population who will be impacted because they do not receive a paycheck from the city to offset the increase and the council members will be impacted by the increase due to the salary that they make.
Board member Kathy Koncel noted the 2023 plan year saw an increase in claims while 2024 plan year saw a decrease which is not something that would have been expected. Board member Koncel said if we considered the price increase over two years and average them it would be less of an increase that would be required.
Lyman informed the board that during the process of review the last renewal changes the stop loss quote came in less than anticipated which provides a 1.5% savings. He further explained there were two laser claims, and one has been removed from the plan, and the other laser was reduced which resulted in 1.5% savings. Lyman shared the understanding with the board to maintain the 19.4% increase and the 1.5% savings will allow the city to build the reserves back as the reserves were tapped into last year intentionally.
Board member Wade Foster asked for the adjusted out-of-pocket maximums for employees. Charlie Broucek from Brown & Brown went over the out-of-pocket maximum data. There was discussion on the benchmarking methodology used and the long-term thought is to get the city on equal playing field with the benchmark cities. Lyman added that the benchmark is taking the average of benchmark cities and coming up with an average of the out-of-pocket maximum the group felt was palatable given the landscape. For the PPO plans currently at $1000 individual out of pocket maximum and $2000 for the family out-of-pocket maximum, increases to $2650 and $5300. The HMO in-network plan shifts the out-of-pocket maximum from $1250 for an individual to $2900 and $2500 for a family to $5800. The HSA plan is currently $2750 for an individual and $4200 for a family and it would adjust the out-of-pocket maximum to $3950 for an individual and $5350 for a family. The approach to these benchmarks include evaluation and asking how the city can remain competitive looking at what needs to be done to mitigate costs given the high increase. There was a review of the number of members enrolled in each plan and discussion on the number of members that reach the out-of-pocket maximums.
There was discussion on the recommended increase and the impact on employees. Lyman shared there was consideration of the relationship with any kind of pay increase or projected pay increase for staff. In addition, he noted there are three population bases impacted by this change, the employee population base will result in a net positive due to the proposed pay increase, the retiree population who will be impacted because they do not receive a paycheck from the city to offset the increase and the council members will be impacted by the increase due to the salary that they make.
| INFORMATION ITEMS |
Comments, Commendations, Report on Current Events and Presentations by Board, Commission or Committee Members, or staff. The members may not propose, discuss, deliberate or take any legal action on the information presented pursuant to A.R.S. § 38-431.02.
| FUTURE MEETINGS |
Tentatively scheduled for November 12, 2026
| ADJOURNMENT |
MOTION BY Chair Michael Balsan, SECONDED BY Committee Member Kathleen Koncel
- AYE:
- Chair Michael Balsan, Vice Chair Wade Foster, Boardmember Jennifer Preyer-Bonton, Acting Finance Director Michael Shoemaker, Committee Member Kathleen Koncel
Passed - Unanimously
There being no further business to discuss, Chairman Balsan adjourned the meeting at 11:45 a.m.
Respectfully Submitted by:
Respectfully Submitted by:
| _____________________________ Lyman Locket, Human Resources Director |
__________________________
Michael Balsan, Board Chairman
|
Date:___________________ |