Insurance Committee - January 2013 APPROVED

TOWN OF SIMSBURY
INSURANCE COMMITTEE

APPROVED
Minutes of Regular Meeting
Board of Education Conference Room
January 23, 2013

The meeting began at 7:35 a.m. Committee members Nick Mason, Ed Sparkowski, Paul Mikkelson, and Jack Sennott were present. Burke LaClair, the Board of Education Business Manager; Tom Cooke, the Director of Administrative Services and Sean Kimball, the Human Resources / Risk Manager for the town were also present. Robert Lindberg, of Lindberg and Ripple and Carol Fitzsimons of CIRMA (Connecticut Interlocal Risk Management Agency) were in attendance as well.

Mr. Sennott made a motion to approve the November 2012 draft minutes. It was seconded by
Mr. Mason. The minutes were unanimously approved.

1. Employee Benefits Update - Robert Lindberg
Mr. Lindberg submitted a 4-page Insurance Advisory Committee Report.
• Recent Claim Activity: Mr. Lindberg reported that the actual numbers for medical claim activity and
  dental claim activity YTD (through December 2012) are coming in below the projected numbers.
• Recent Renewal Results: The allocation rates for the town’s medical plans are expected to increase
  from 5.0% to 5.5% from July 2012 to July 2013. They will continue to increase in subsequent years.
  This is partly due to new fees: an ACA Reinsurance fee and an Effectiveness fee. The Effectiveness  Fee  will total about $5.25 per member, per month. Simsbury’s medical plan rates, however, continue to be much lower than current market values. Because they are self-funded, Simsbury’s medical plans are
  exempt from an extra 2.5% fee. Allocation rates for the town’s dental plans have remained consistent,
  at 0.0%, for the last several years.
• Mr. Lindberg reported that Lindberg and Ripple has conducted a competitive market review among
  Aetna, Anthem, Connecticare, CIGNA, United Healthcare and the state partnership program. UHC did
  not respond, and the state requested additional information from the town. This report will be available
  to the Insurance Commission by next week.
• The commission discussed the possible benefits of consolidating all of the town’s health plans. Mr.
   Lindberg noted that consolidation would generate significant savings for the town, since there would
   be a single risk pool for stop loss insurance, and lower administrative costs by using a single carrier.
   Lindberg and Ripple is currently working on a cost analysis chart of the 6 different insurance
   plan designs that the town provides. Mr. Lindberg expects to distribute the chart to the Insurance
   Commission in about two weeks.
• The commission also discussed a primary care physician (PCP) shortage in Connecticut. Many PCPs
   are unable to take new patients or are retiring. Mr. Mikkelson suggested a “Tell a Doctor / Call a
   Doctor Program” which might be offered to town employees as an extra benefit. This program works
   like a “Nurse Line,” except employees could talk to a doctor at any time of the day. Access would be
   live via phone or computer video. It might allow employees quicker access to a doctor and speedier
   reaction to medical problems. Mr. Mikkelson offered the program folder to Mr. LaClair for review.
• Nothing to report on the state and federal plans since the November meeting.

2. Property Casualty Insurance Issues - Carol Fitzsimons of CIRMA
On behalf of CIRMA, Ms. Fitzsimons presented a 5-page report with 4 pages of colored bar graphs.
Loss experiences. Since our last meeting in November, there were no significant loss changes and no new losses over $25,000.
Risk management. Ms. Fitzsimons reported that CIRMA has been working with the Newtown BOE
in the aftermath of the December school shooting. CIRMA will be working on a one-to-one basis with other Connecticut schools, including Simsbury, to re-evaluate security systems and risk management issues. She noted that Simsbury schools carry insurance on its playgrounds as well as on its buildings.
Marketplace. Ms. Fitzsimons mentioned that no new carriers were coming into the marketplace.
Reinsurance. CIRMA is currently negotiating with reinsurance companies. Ms. Fitzsimons is certain that reinsurance rates will go up, but does not know by how much.
CIRMA update. CIRMA is holding its annual meeting this Friday, January 18. Mr. Cooke and Mr. Kimball will attend. Ms. Fitzsimons noted that it will be a retrospective meeting. CIRMA has helped the BOE get trip insurance coverage—with a premium savings of $9,124—for four international trips that students and teachers will take in 2013.

3. Other Insurance Matters. None.
The meeting was adjourned at 8:45 a.m. The next Insurance Committee Meeting will be March 27, 2013.

Respectfully submitted,
Lorrie McElligott
Commission Clerk