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HomeMy WebLinkAbout05-26-1998 Meeting I I I ADMINISTRATIVE SERVICES COMMITTEE COMMITTEE ROOM - May 26, 1998 2:00 P. M. PRESENT: Hons. Larry Sconyers, Mayor; H. Brigham, Chairman; Beard and Shepard, members; Jim Wall, Attorney; Randy Oliver, Administrator; Lori D'Alessio of the Attorney's Office; Keven Mack, HND Director; Rick Acree, Asst. Director of Public Works - ~ Facilities Maintenance Division; David Collins, Finance Dept.; .~ John Etheridge, Human Resources Director; Lena Bonner, Clerk of Commission and Nancy Morawski, Deputy Clerk of Commission. ABSENT: Hon. Powell, Vice-Chairman. Also Present: George Eskola of WJBF Television, Stacy Eidson of The Metropolitan Spirit, other members of the news media and Hons. Bridges, J. Brigham and Todd, Commissioners. A request to approve the new progressive disciplinary policy, was read. Mr. Oliver: This outlines the necessary steps in our progressive disciplinary policy and it will be in writing. Mr. Etheridge: This would provide more consistency in the way we discipline our employees and I would recommend that you approve it. After a short discussion, Mr. Shepard: I make a motion that we approve it. Motion dies for lack of a second. A request to approve Subordination Agreement for Sidney G. Price, Jr. and Teresa Gail Price to be subordinated to loan by United Companies Lending Corporation. The Subordination Agreement is in regards to property located at 1836 Fenwick Street, was read. Mr. Mack: Let me recommend that we hold off on this. Mr. Wall shared some information that I wasn't aware of and I'd like to get an appraisal on the property and we can bring it back to the next meeting. Mr. Shepard: I make a motion we place it on the agenda for the next meeting. Mr. Beard: Second. Motion adopted unanimously. A request to award to the low bidder for Small Business Incubator Facility, was read. Mr. Oliver: We're asking that this be considered at the Commission meeting on the 16th. Mr. Wall: I think you need to just put this on the agenda for the 16th without any recommendation. I Mr. Shepard: I so move. Mr. Beard: I'll second that. Motion adopted unanimously. At this time the Committee heard a presentation by the consultants regarding health insurance premiums and benefit package. A delegation of retired employees also appeared before the Committee regarding the above matter. Mr. Oliver: Currently we are running about $900,000 less than we should on the health insurance plans. As part of our budget process, we have to determine how we will bridge that gap. On the current level of benefits provided, we are losing about $900,000 on the PPO plan. Effective 1/1/99 it's our understanding that the HMO is going to offer a Medicare/Medicaid HMO and people that wish to avail themselves of that can do so. At this time Ms. Susan Snyder-Bass made a presentation outlining the costs involved in the PPO and HMO plans. I Ms. Snyder-Bass: In the case of retirees, if Medicare is primary, this plan coordinates and basically, if they would have paid more than Medicare, then there will be some payment. If they would have paid less than Medicare, there will be no payment. Mr. Billy Lynn and Mr. Oscar Baker made presentations on behalf of the retirees. Mr. Baker: A change occurred where the PPO will not pay the remainder of what is left after Medicare has made their payment. Mr. Shepard: When did this occur? Mr. Lynn: It took effect February 1, 1997. Mr. Shepard: So the supplement is not paying? Who has not received payments? (A number of people in the audience raise their hands) Mr. Oliver: Mr. Lynn mentioned that he has bills totaling $45,000. The key there is part of those have to be Medicare/ Medicaid unallowable charges to get to that amount because the maximum Medicaid amount is about twenty-some hundred dollars a year. That indicates to me that the physician and the hospital are outside the Medicare/Medicaid schedule. They've accepted an I I I 1 assignment of benefits and they aren't doing that. If the charges being promulgated by the physician and the hospital are outside of the Medicare/Medicaid assignable benefit, I think we get into dangerous territory to pay beyond those limits. Ms. Shepard: I'd like to ask the folks with claims to identify themselves to Mr. Etheridge and my motion is those that are here that have those claims so identify themselves, that we receive what has been given us by the consultant as information but not only that, that we ask our Attorney to conduct an investigation as to the payments that have been made here drawing on the expertise of our Administrator and Ms. Bass and report back to this Committee. I would like the claims looked at that have been denied as well as look at the financial problem that we have concerning the premium costs. Mr. Beard: I'll second that motion. Mr. Chairman: Ladies and gentlemen, you can remain here with Mr. Etheridge and go through this. Ms. Snyder-Bass: When the change was made, it was basically the retiree coordination was equal as close as we could get it to the active employee. The active employee has a working spouse that might have other coverage and that coverage would pay first as in the case of Medicare paying first. Then the County plan would process the claim as though that person were under their plan and if there is a difference, if the County plan would have paid more than the first plan paid, then they would pay up to what Medicare allowed. So, yes, there are some instances where there might be over the allowable but that was the way that the program was set up. We did not set it up when we changed it to pay 80% of 20. After further discussion by other retirees, the motion was put and adopted. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission NWM