BERGEN MUNICIPAL EMPLOYEE BENEFITS FUND OPEN MEETING: FEBRUARY 23, 2012 SADDLE RIVER BOROUGH HALL 12:00 P.M.

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1 BERGEN MUNICIPAL EMPLOYEE BENEFITS FUND OPEN MEETING: FEBRUARY 23, 2012 SADDLE RIVER BOROUGH HALL 12:00 P.M. Meeting called to order by Chairman Charles Cuccia. The Open Public Meeting Notice was read into the record. ROLL CALL OF 2012 EXECUTIVE COMMITTEE: Chairperson Charles Cuccia Borough of Saddle River Present Secretary Peter Van Winkle Borough of Rutherford Present Executive Committee Members Linda LoPiccolo Twp. of South Hackensack Present Robert Hoffmann Borough of Westwood Present Maureen Iarossi-Alwan Borough of Montvale Absent Hugo Poli Village of Ridgefield Park Present Victor Baginski Borough of Wallington Present Alternates Richard Kunze Borough of Oakland Present Kelly O Donnell Borough of Park Ridge Absent APPOINTED OFFICIALS PRESENT: Executive Director/ PERMA Risk Management Paul Laracy Administrator Services Emily Koval Attorney Huntington Bailey, LLP Russell Huntington Treasurer Joseph Iannaconi Third Party Administrator Aetna Gary Lopez David Norton Dental Claims Delta Dental of NJ, Inc. Beth Jackson Administrator Auditor Lerch, Vinci & Higgins Actuary John Vataha Independent Consultant LaMendola Associates Clark LaMendola Benefits Consultant Conner Strong Diane Peterson RX Administrator Express Scripts Kelly Depcik Paul Grew Katty Mercado OTHERS PRESENT: Frank Covelli, PIA Glenn Parsells, Parsells Agency Deb Ginetto, Burton Agency Dave Vozza, Vozza Agency 1

2 Tom Konkowski, Wallington CORRESPONDENCE None APPROVAL OF MINUTES: Open. MOTION TO APPROVE THE OPEN AND CLOSED MINUTES OF JANUARY 23, 2012 MOTION: ROLL CALL VOTE: Commissioner VanWinkle Commissioner Baginski 6 Ayes, 0 Nays, 1 Abstain (Abstained: Commissioner LoPiccolo) EXECUTIVE DIRECTOR S REPORT FINANCES PRO FORMA REPORTS The agenda included the Fast Track Financial Report as of December 31, 2011; the Indices and Ratios Report as of December 31, 2011; the Budget Reconciliation February 2012 and the Regulatory Compliance Checklist as of February 16, Executive Director said the IBNR had been revised and shows a conservative reservation. Year to date, there is a $6.5 million surplus. ADMINISTRATION ON-LINE ENROLLMENT SYSTEM - We have been offering webinars on use of the on-line enrollment system. Because of the significant investment made by the Funds in the system, we recommend that use of the system be mandatory effective May 1, This would give us time to work with willing participants first and give us multiple opportunities to reach out to members that may be reluctant to change. Additionally, the new system allows for electronic mailing bills. We seek your authorization to implement this feature on April 1. Commissioner Hoffmann requested that the CFO, Fund Commissioner and the current enrollment contact be cc d on the electronic bills. IN response to Chairman Cuccia, Executive Director said that the administration will first go live with the new enrollment system, then may be released to the employee. Program Manager said the Karen Kidd will be doing webinars on the system. If anyone is interested, they can contact the Program Manager s office. Commissioner Baginski requested a training booklet for reference. MOTION TO AUTHORIZE MANDATORY ELECTRONIC MONTHLY BILLING EFFECTIVE APRIL 1,

3 MOTION: ROLL CALL VOTE: Commissioner LoPiccolo Commissioner Hoffmann 7 Ayes, 0 Nays, In response to Chairman Cuccia, Executive Director said that Fund marketing is underway. Franklin Lakes has made a verbal commitment. We will notify the Fund when the agreements have been signed. MUNICIPAL REINSURANCE HIF - The MRHIF met on February 2, 2011 for their annual reorganization meeting. Commissioner Van Winkle s report is included in the agenda. Beginning in June, the Fund will meet at the Saddle River Borough. Call-in option will remain available. Commissioner Van Winkle said that the Fund is currently in a good cash position. PRIMA CONFERENCE - The next PRIMA convention will take place in Nashville, TN from June 3rd to June 6 th, Please check your calendars and determine if you are interested in attending this year s conference. Resolution authorizing travel and related expenses for the conference is included. In addition, Ms. Koval distributed memos regarding the MEL/MRHIF education seminar on April 16 and a webinar regarding low cost plans that is made available to all Fund Commissioners. FINANCIAL DISCLOSURE STATEMENTS - Included in your agenda packet is a Financial Disclosure form. We would encourage all Fund Commissioners to complete these forms and provide two copies with original signatures to the Fund office on or before April 2, In accordance with State regulations, the Fund must file these disclosures with the Department of Community Affairs. The website for the on-line form is: INCLEMENT WEATHER PROCEDURE - A procedure has been instituted for Commissioners to confirm whether a meeting has been cancelled. The Executive Director will talk to the Chair to determine if a meeting should be cancelled. In the case of an early morning or evening meeting, PERMA will leave a message, which can be obtained by dialing the Fund s main number of (201) For meetings that occur during normal business hours, meeting status can also be obtained by dialing the Fund office. BENEFITS MANAGEMENT PHARMACY COST CONTROLS AND PROGRAM ENHANCEMENTS - We tabled action on this matter as implementation details were being worked out in the SNJ fund. Based upon the pilot program, we believe that the Select Step Therapy program would violate union contracts and therefore cannot be implemented without authorization from each member municipality. However, programs that can be implemented to both control costs and improve effectiveness falling in the authority of the executive committee include: 3

4 Additional prior authorization controls (a medical necessity and safety program). Program Manager said there will be very little disruption with this program. Medication adherence (a wellness initiative). Fraud, Waste and Abuse (cost savings, wellness, legal compliance). This program will begin April 1. Select home delivery (cost savings and convenience). Program Manager said this program is will have the biggest impact on the Fund. The start up date will be June 1. Exclusive network (cost savings by using pharmacies that offer higher discounts or reduced dispensing fees). Program Manager described this program further. In response to Chairman Cuccia, Program Manager said notification will be sent to employees who will be losing their pharmacy due to the program. All of the above programs are described in an attachment to this report. Draft letters to municipal representatives and participants are being shared among fund professionals and will be brought to the meeting for discussion and authorization. In response to Commissioner Kunze, Program Manager said all the programs are Fund Wide, but the Select Home Delivery will be optional by employee. ONLIFE HEALTH Any entity that is interested in pursuing a strategy to improve participation, holding a wellness fair, or simply seeking additional guidance concerning wellness programs should reach out to Lisa Frappolli who is the assigned Wellness & Productivity Coordinator with Conner Strong & Buckelew. Our wellness team is excited to partner with you to help improve the health and well-being of your workforce. Lisa Frappolli Wellness & Productivity Coordinator P: F : lfrappolli@connerstrong.com Ms. Frappolli was present at the meeting and described the Move On Olympic Challenge and other programs through Onlife Health. ONLIFE MOVEON OLYMPIC CHALLENGE - Onlife Health is pleased to announce that beginning February 13 th the Moveon Challenge will commence!! This four week competition is geared toward helping members achieve a well-rounded exercise program. Each week will focus on a different area of exercise, such as cardiovascular & endurance, stretching/flexibility and strength training. All members will be informed of the competition through a letter mailed to their home. By completing each of the assigned exercises, members will accrue points and be eligible for a reward. All participants will be required to log their exercises and mail them to our wellness guru, Lisa Frappolli. At the end of the competition, those that have achieved a specified number of points will be entered into a drawing for $200. ONLIFE MAKES POSITIVE CHANGE IN EMPLOYEES - Recently, an entity within a HIF made it a priority to increase employee participation within their wellness program. Extensive research has demonstrated time and again that success in these programs is largely contingent upon 4

5 offering an incentive. This employer demonstrated a commitment to their wellness program by offering employees an incentive to participate. In 2011, employees were offered an extra half day of vacation time as long as they earned a certain number of Life Points. These points could be achieved through a variety of health related activities. Of the eligible employees, 54% completed their health risk assessment and engaged in additional online wellness activities! Below is a brief write up we received from a member in this group who wanted to relay her appreciation and perspective of the program. The importance of peer support is key Everyone received the same messaging and direct outreach at employee meetings, but people participated in clusters. Hey, Joe just got a half day off how d you do that? Most of our police department signed up all in the same week because their squad partners were doing it. I don t have good empirical evidence as to outcome evaluation actual pounds lost, fewer cigarettes smoked, etc. But I have been told anecdotally that seeing their health assessment and talking to their coach has helped some people make incremental changes to improve their health. So we just need to keep at it! I m biased, of course, but I think it helps that our township selected their Health Department to be the Wellness Ambassadors. It focuses attention that making these changes really makes a difference in your health status. That fact can be diluted if it is managed as an employee benefit instead of a Health Education initiative. In response to Commissioner Hoffmann, Ms. Frappolli said that there has been a low participation rate for the BMED. Commissioner Hoffmann suggested that there be incentive for employees who are already active. PLAN / ENROLLMENT CHANGES 5/1/2012- The Borough of Oakland will be adding a Aetna Open Access 10 (SHBP Match) DELTA DENTAL ID CARDS - Effective 4/1, Delta Dental will convert the BMED/Gateway to the new system of ID cards. Currently, members have a generic card that does not contain any unique information. However, this change will assign members a unique identification member as well as the name of their group on the card and it will be delivered to each member s home. Chairman Cuccia asked that these cards be released Fund-wide. EXPRESS SCRIPTS COST CONTAINMENT INITIATIVES - An update on dates and communications will be provided. PLAN DOCUMENTS - The status report for Plan Documents was included in the agenda. 5

6 Executive Director's Report Made Part of the Minutes. FUND ATTORNEY No report AETNA - THIRD PARTY ADMINISTRATOR Mr. Lopez introduced Mr. Norton, who will be supervising the account when Mr. Lopez retires. Mr. Lopez reviewed the claims report for The average for 2011 was 41,019, while 2010 was $932. There were no high claimants for December In addition, he distributed the Key Statistics report. He said the primary physician usage increased from the previous year, which is good indicator of network utilization. TPA's Report Made Part of the Minutes PHARMACY NETWORK (Express Scripts) Ms. Depcik said the new low cost plans are being closely reviewed before going live. She will review all communications and bring them to the next meeting for the Committee before sending out. DELTA DENTAL Ms. Jackson said new unique ID cards that avoid using social security numbers will be available soon. TREASURER - The Treasurers Report was included in the agenda. Chairman Cuccia reviewed the bills that were distributed at the meeting. RESOLUTION JANUARY 2012 BILLS LIST FUND YEAR AMOUNT 2011 $ $223, TOTAL $224, Treasurer's Report Made Part of the Minutes BOARD ADVISOR: No Report CONSENT AGENDA: The following Resolutions listed on the Consent Agenda will be enacted in one motion. Resolutions Subject Matter Approval of Rx Cost Savings Programs REMOVED Authorization of 2012 PRIMA Travel Expenses Authorization of February 2012 Bills List 6

7 17-12 Certification of Claim Payments/Imprest Transfers REMOVED Resolution for Executive Session - For specified purpose of Claims discussion MOTION TO APPROVE THE CONSENT AGENDA, AS DISCUSSED: MOTION: ROLL CALL VOTE: Commissioner VanWinkle Commissioner Hoffmann 7 Ayes, 0 Nays OLD BUSINESS: None. NEW BUSINESS: Commissioner Hoffmann said that Westwood offered employees the Health Savings Account plan. The entity saved money, which he would like to put into a trust fund. In order to account accordingly, he requested a report showing all claims and reserves. Program Manager said she could provide any report, but needs specifics. She has provided a vital statistics report on a quarterly basis. Fund Attorney suggested that if these Health Savings Plans become more popular, reports should become standard and available on a regular basis. Each report should have a standard name. Executive Director said that there are some HIPPA regulations that are easy to overcome. Although for the smaller groups, many of these reports may not be credible. Fund Attorney said a disclaimer can be used in this case. PUBLIC COMMENT: None MOTION TO ADJOURN: MOTION: VOTE: Commissioner VanWinkle Commissioner LoPiccolo Unanimous MEETING ADJOURNED: 1:00pm NEXT MEETING: April 26, 2012 Saddle River Borough Hall 12:00 P.M. Emily Koval, Assisting Secretary Date Prepared: April 18,