Peoria Standard

The Peoria Special County Operations Committee met Nov. 28 to adopt employee health plan.

Here is the meeting's agenda, as provided by the committee:

AGENDA

County Operations Committee

Budget

Monday, November 28, 2016

@2:00 p.m.

Peoria County Courthouse, Room 402

1. Call to Order

2. Budget

• Committee Budget

3. Resolutions

• Adoption of Peoria County Employee 2017 Health Plan Premium

• Excess Health Insurance

• Risk Management Third Party Administrator Services and Excess Insurance

• FY 2017 Capital Improvement Budget and 2017-2021 Capital Improvement Plan

4. Miscellaneous

5. Adjournment

AGENDA BRIEFING

COMMITTEE: County Operations Committee LINE ITEM:

MEETING DATE: November 28, 2016 AMOUNT:

ISSUE:

For RESOLUTION: Establish both the employer and employee medical health premiums, effective January 1,

2017 through December 31, 2017.

BACKGROUND/DISCUSSION:

In 2009, the County Board approved a 20% premium decrease for both the employer and employee shares for the

2010 plan year. The strong financial health of the fund allowed a decrease at a time when the national average

showed most premiums increasing. This 20% reduction provided a savings of $30 per month for those with single

coverage on the regular plan and a savings of $76 per month for those with dependent coverage (d+2) on the

regular plan. With this reduction, both of these premium categories were being funded at the 2005 premium level

(after the $20 add-on was removed). In 2010, the health of the fund and claim history allowed the Board to keep

premiums flat at the 2010 level for 2011. In 2012 premiums increased 8% to maintain a structural balance in

revenues and expenditures, which put premium levels at approximately the same level as in 2006. In 2013 and 2014,

premiums increased 8% and 2%, respectively. In 2015 premiums remained flat with a 0% increase and in 2016

premiums increased by 5%.

Staff has estimated medical and pharmacy claims for the remainder of 2016 and 2017, as well as the administrative

costs of operating the plan and compared the County's plan against national and internal trends. Medical claims

increased from $5.3 million in 2014 to $6.7 million in 2015. The projected trend in 2016 has these claims decreasing

to $6.4 million. Included in these costs are a few high dollar claims that resulted in the excess insurance carrier

reimbursing the County for a portion of the expenses. Some of these are one-time claims. The other major cost

drivers in medical spending include, but are not limited to, expanded coverage of wellness services to 100% through

PPACA, musculoskeletal disorders, diseases of the digestive system and diseases of the circulatory system. Staff

continues to meet with its third party administrator to review claims on a regular basis. The current fund balance,

while significant, is being maintained at a level for designated PPACA expenses moving forward into 2018.

Administration gave direction to offices and departments that a 5% premium increase was needed during the

"Request" phase of the 2017 Budget Process. The Recommended Budget decreases the premium growth to 2%.

The premium increase at 2% allows the County flexibility with future costs in order to continue to implement

healthcare reform regulations and stay under the regulated "cap" for PPACA.

The charts on the next page reflect the 2016 premiums by plan type at a 2% increase. These premium levels are at

approximately the same level as the premiums in 2009.

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Premium Cost Sharing

2017 Recommended

Regular Plan Employee Employer

Single $154.64 $618.58

Member +1 (D-1) $347.95 $1,198.49

Member +2 (D-2) $386.61 $1,159.83

Premium Cost Sharing

2017 Recommended

High Deductible Plan Employee Employer

Single $64.94 $259.94

Member +1 (D-1) $146.22 $503.64

Member +2 (D-2) $162.47 $487.40

Premium Cost Sharing

2017 Recommended

Indemnity Plan Employee Employer

Single $95.57 $382.26

Member +1 (D-1) $215.02 $740.64

Member +2 (D-2) $238.91 $716.74

COUNTY BOARD GOALS:

HIGH PERFORMING PUBLIC ORGANIZATION

STAFF RECOMMENDATION:

APPROVAL

COMMITTEE ACTION:

PREPARED BY: Vicki Willis, HR Generalist

DEPARTMENT: County Administration DATE: October 19, 2016

3

THE HONORABLE COUNTY BOARD)

)

COUNTY OF PEORIA, ILLINOIS )

Your County Operations Committee does hereby recommend passage of the

following resolution:

Re: Peoria County's Employee Health Plan Premium Adoption

RESOLUTION

WHEREAS, the County of Peoria has a self insured employee health fund; and

WHEREAS, fund balance reserves exceed the County Board's fund balance

policies due to cost containment measures, contractual arrangements, and a designation

for potential PPACA expenses in future years; and

WHEREAS, your County Administrator has recommended the attached health

plan premium increase 2% from the 2016 level effective January 1, 2017 through

December 31, 2017; and

WHEREAS, your County Operations Committee recommends adoption of the

premiums at a 2% increase effective January 1, 2017 through December 31, 2017.

NOW THEREFORE BE IT RESOLVED, by the County Board of Peoria County

that the recommendation of the County Administrator and your County Operations

Committee for the attached Employee Health Plan premiums is hereby adopted.

RESPECTFULLY SUBMITTED,

COUNTY OPERATIONS COMMITTEE

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AGENDA BRIEFING

COMMITTEE: County Operations LINE ITEM: 081-5-081-7-730-53055

MEETING DATE: November 28, 2016 AMOUNT: $637,338.36

ISSUE: Approve renewal of excess health insurance.

BACKGROUND/DISCUSSION:

Consociate Dansig recently received excess insurance quotes for the County's medical and

prescription drug claims exceeding the specific stop loss amount of $125,000. Consociate Dansig

requested quotes from 8 carriers in the market and received formal proposals from two of the stop

loss carriers, including the incumbent HM Life.

A competitor, Excess Risk/Ironshore, submitted the lowest proposal with the same deductibles as HM

Life, a $125,000 stop loss and retroactive coverage for 24 months. Excess Risk/Ironshore is

proposing no new lasers for 2017 with a 39% rate cap for 2017 (as opposed to the incumbents 50%

rate cap).

HM Life's renewal quote for 2017 is $705,238. Excess Risk/Ironshore's proposal for 2017 is

$637,338. The County's total liability exposure for excess coverage is decreasing by approximately

$67,900.

COUNTY BOARD GOALS:

HIGH PERFORMING PUBLIC ORGANIZATION

STAFF RECOMMENDATION:

Approve the proposal of insurance with Excess Risk/Ironshore with the current $125,000 specific

limit and $150,000 aggregating deductible and to bind insurance coverage.

COMMITTEE ACTION:

PREPARED BY: Angela Loftus, Assistant HR Director

DEPARTMENT: County Administration

DATE: November 16, 2016

5

TO THE HONORABLE COUNTY BOARD )

)

COUNTY OF PEORIA, ILLINOIS )

Your County Operations Committee does hereby recommend passage of the following Resolution:

RE: Provision of Stop Loss Excess Insurance Coverage for Peoria County Healthcare Plan, 2017

RESOLUTION

WHEREAS, Peoria County must provide Stop Loss Excess Insurance Coverage to protect

itself from major claims under the Peoria County Health Plan; and

WHEREAS, Consociate Dansig sought quotes from various firms providing Excess Stop Loss

Coverage to ensure that the County receives maximum savings, dollar for dollar; and

WHEREAS, Excess Life/Ironshore submitted the lowest quote for excess insurance in 2017

with a no laser option and 24 months of retroactive coverage; and

WHEREAS, your Committee recommends that the County of Peoria enter into a contract

with Excess Risk/Ironshore for Stop Loss Excess Insurance Coverage at an estimated annual cost of

$637,338.36.

NOW THEREFORE BE IT RESOLVED, by the County Board of Peoria County, that the

County Administrator be authorized to enter in to a contract with Excess Risk/Ironshore for Stop

Loss Excess Insurance coverage for the period January 1, 2017 through December 31, 2017.

BE IT FURTHER RESOLVED, that the County Administrator is authorized to execute

documents to carry out this resolution.

RESPECTFULLY SUBMITTED,

County Operations Committee

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AGENDA BRIEFING

COMMITTEE: County Operations LINE ITEM: Fund 082-multiple lines

MEETING DATE: November 28, 2016 AMOUNT: est. $886,361

ISSUE: Approve excess insurance/broker and third party administrator (TPA) bids for risk

management.

BACKGROUND/DISCUSSION:

Arthur J. Gallagher (AJG) recently secured quotes for the 2017 insurance program. The breakdown

below compares previous rates with the 2017 quotes.

Risk Management Insurance Package

Lines of Coverage Carrier 2014 2015 2016 2017

%

Change

Casualty Package BRIT $203,000 $204,865 $188,000 $188,000 0%

Property* Affiliated FM 118,793 124,620 125,822 132,113 5%

Boiler & Machinery Travelers 10,377 10,462 10,172 10,480 3%

Excess Work Comp Safety National 68,790 74,807 81,319 80,999 0%

Excess Liability PESLIC 218,240 220,000 224,500 229,000 2%

Excess Crime Travelers 7,699 7,749 8,072 8,072 0%

UST/Environmental - 17,000 17,525 17,839 2%

Cyber Liability* Lexington - 15,271 14,740 15,000 2%

Terrorism Policy BRIT 19,000 19,000 18,000 17,000 -6%

Surplus Lines Tax N/A 15,848 16,826 18,831 18,859 0%

AJG Broker Fee N/A 56,650 56,650 58,370 60,121 3%

Gallagher Bassett TPA Fees** 88,587 88,587 89,835 85,078 -5%

$806,984 $855,837 $855,186 $862,561 1%

Medical Professional Liability Landmark $24,666 $24,657 $23,800 $23,800 0%

$831,650 $880,494 $878,986 $886,361 1%

Annual Loss Fund $400,000 $400,000 $300,000 $300,000

Corridor Retention $200,000 $200,000 $100,000 $100,000

$1,431,650 $1,480,494 $1,278,986 $1,286,361 1%

*estimated cost based upon current experience and discussions with carrier

** estimated cost, true cost based upon number of claims, etc and finalized upon case audits

The 2017 renewal represents a total increase of approximately $7,375 (1%). Through the relationships

with IWIRC, AJG/Gallagher Bassett and Steve Kelly, the County's outside counsel for worker's

compensation, the number of liability and worker's compensation claims continue to remain at low

levels. In spring 2017 staff will be issuing bids for the broker and third party administrator services.

We anticipate bringing those to the board for approval in summer 2017.

STAFF RECOMMENDATION:

Accept the quotes and approve the 2017 insurance program, including Gallagher Bassett and AJG.

COMMITTEE ACTION:

PREPARED BY: Angela Loftus, Assistant HR Director

DEPARTMENT: County Administration

DATE: November 16, 2016

7

TO THE HONORABLE COUNTY BOARD )

)

COUNTY OF PEORIA, ILLINOIS )

Your County Operations Committee does hereby recommend passage of the following Resolution:

RE: Risk Management Third Party Administrator Services and Excess Insurance

RESOLUTION

WHEREAS, Peoria County is self-insured for property, liability, worker's compensation, and

other insurance programs; and

WHEREAS, Peoria County maintains excess insurance and third party administrative services

as part of its self-insured program; and,

WHEREAS , Peoria County has received the renewal from Gallagher Bassett for Risk

Management Third Party Administrator Services and through Arthur J. Gallagher (AJG) receive

quotes from various underwriters for the renewal of boiler/machinery, property, worker's

compensation, crime, liability, and casualty, etc. for an estimated premium of $886,361; and

NOW THEREFORE BE IT RESOLVED, by the County Board of Peoria County, that the

County Administrator is authorized to execute documents to carry out this resolution.

RESPECTFULLY SUBMITTED,

COUNTY OPERATIONS COMMITTEE

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AGENDA BRIEFING

COMMITTEE: County Operations Committee LINE ITEM: Various

MEETING DATE: November 28, 2016 AMOUNT: $12,077,634

ISSUE:

For RESOLUTION: Approval of 2017 Capital Improvement Budget and the 2017-2021 Capital Improvement

Plan

BACKGROUND/DISCUSSION:

As required by the adopted Capital Improvement Plan, the County Administrator seeks requests for capital

improvement projects for the upcoming fiscal year and the five (5) years beyond that each year.

Across all funds, the Administrator's Recommended 2017 Capital Improvement Budget has 43 projects valued

at $12,077,634. The total planned cost for the 2017-2021 spending plan includes 118 projects at $60,465,534.

Staff recommends approval of the Administrator's Recommended 2017 Capital Improvement Budget as

presented, and that the necessary funds be appropriated to implement the 2017 Capital Improvement Budget.

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COUNTY BOARD GOALS:

WORLD CLASS PUBLIC FACILITIES

STAFF RECOMMENDATION:

APPROVAL

COMMITTEE ACTION:

PREPARED BY: Eric J. Dubrowski, Chief Financial Officer

DEPARTMENT: Finance DATE: October 12, 2016

10

TO THE HONORABLE COUNTY BOARD )

)

COUNTY OF PEORIA, ILLINOIS )

Your County Operations Committee recommends passage of the following Resolution:

RE: Approval of the 2017 Capital Improvement Budget and the 2017-2021 Capital Improvement Plan

RESOLUTION

WHEREAS, County Board Financial Policies require that a capital improvement plan be

established to properly plan for future capital needs of the County; and

WHEREAS, The County has developed a five-year capital improvement plan to repair and

replace assets including, but not limited to roads and bridges, and site improvements; and

WHEREAS, The County fund balances have been rebuilt recently in accord with County

Financial Policies; and

WHEREAS, Your Committee would recommend approval of the 2017 Capital Improvement

Budget in the amount of $12,077,634 and the 2017-2021 Capital Improvement Plan in the amount of

$60,465,534.

NOW THEREFORE BE IT RESOLVED, by the Peoria County Board, that the 2017 Capital

Improvement Budget and the 2017-2021 Capital Improvement Plan be approved and the necessary

funds be appropriated in the County's budget to implement the plan.

RESPECTFULLY SUBMITTED,

COUNTY OPERATIONS COMMITTEE

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