Finance Committee Meeting
Minutes – December 14, 2009
Town Hall, Lower Level Hearing Room – 7:30 P.M.
Members Present: Maria Anderson (late), Brian Fitzgerald, Keith Garte, Donald
Gilligan, Gordon Gladstone, Charles Goodman, Jonathan Hitter, Joel
Lessard, Ira Miller, Laura Nelson (Hamilton)
Absent: Josh Kiernan, Edward Philips
1. The first item on the agenda was to approve prior minutes.
2. A MOTION was made by Ira Miller and SECONDED by Joel Lessard to accept the minutes of September 9, 2009, Joint Meeting with the School Committee.
3. VOTED: 4-0-5. For: Goodman, Hitter, Lessard, Miller. Abstain: Fitzgerald, Garte, Gilligan, Gladstone, Nelson.
4. A MOTION was made by Ira Miller and SECONDED by Donald Gilligan to accept the minutes of September 30, 2009.
5. VOTED: 5-0-4. For: Fitzgerald, Gilligan, Hitter, Miller, Nelson. Abstain: Garte, Gladstone, Goodman, Lessard.
6. A MOTION was made by Joel Lessard and SECONDED by Ira Miller to accept the minutes of October 5, 2009.
7. VOTED: 6-0-3. For: Garte, Gilligan, Hitter, Lessard, Miller, Nelson. Abstain: Fitzgerald, Gladstone, Goodman.
8. A MOTION was made by Joel Lessard and SECONDED by Donald Gilligan to accept the minutes of October 14, 2009.
9. VOTED: 6-0-3. For: Garte, Gilligan, Goodman, Hitter, Lessard, Miller. Abstain: Fitzgerald, Gladstone, Nelson.
10. A MOTION was made by Joel Lessard and SECONDED by Donald Gilligan to accept the minutes of October 15, 2009.
11. VOTED: 7-0-2. For: Fitzgerald, Garte, Gilligan, Goodman, Hitter, Lessard, Miller. Abstain: Gladstone, Nelson.
12. A MOTION was made by Joel Lessard and SECONDED by Ira Miller to accept the minutes of October 19, 2009.
13. VOTED: 7-0-2. For: Garte, Gilligan, Goodman, Hitter, Lessard, Miller, Nelson. Abstain: Fitzgerald, Gladstone.
14. A MOTION was made by Joel Lessard and SECONDED by Ira Miller to accept the minutes of October 26, 2009.
15. VOTED: 7-0-2. For: Fitzgerald, Gilligan, Goodman, Hitter, Lessard, Miller, Nelson. Abstain: Garte, Gladstone.
16. A MOTION was made by Ira Miller and SECONDED by Chuck Goodman to accept the minutes of November 2, 2009.
17. VOTED: 6-0-3. For: Fitzgerald, Garte, Goodman, Hitter, Miller, Nelson. Abstain: Gilligan, Gladstone, Lessard.
18. A MOTION was made by Joel Lessard and SECONDED by Keith Garte to accept the minutes of November 23, 2009.
19. VOTED: 4-0-5. For: Garte, Goodman, Hitter, Lessard. Abstain: Fitzgerald, Gilligan, Gladstone, Miller, Nelson.
20. The next item on the agenda was to discuss health insurance.
21. Ben Puritz introduced Pat Haraden of Longfellow Benefits who had presented a comprehensive report of health insurance. He started with an overview, and Peter Kenney of Cook & Company, Health Plan Management Consultant, gave an update.
22. Pat Haraden went over the report page by page. This did not include the School Department.
23. Ben Puritz stated that for FY’10, Sharon Teachers, STEA, have Network Blue. They have higher co-pay, continuing at 80/20 for balance of year. Blue Cross has fixed co-pay.
24. Pat Haraden stated that if the town elects GIC, it is a three-year commitment.
25. There was some discussion regarding Blue Cross not being part of GIC. Blue Cross doesn’t like the way management treats members. Says they can do better on their own.
26. There was discussion regarding deductibles and co-pay. These were Tier 1, $250; Tier 2, $500; Tier 3, $750. A maximum out of pocket amount for calendar year at $250 deductible would be four hospitalizations. Fifth time would be free. After February 1, there would be deductible and co-pay for in-patient hospitalization.
27. Peter Kenney presented an updated report of costs. Surpluses went into Claims Trust Fund. As of June 30, 2009, $4.2M in Claims Trust Fund.
28. There was much discussion on the percentage of cost to the town, number of claims, reserves, Medex, and Part D prescription drug plan. A subsidy was given by Federal government which DOR said goes to General Fund. Part B to individual, Part D to town.
29. A question was posed as to why office visit co-pays are only $10. The reply was that when the change was implemented approximately three years ago, this was standard. Changes in benefits have to be negotiated with unions—it’s always a struggle to make benefit changes.
30. Sharon pays approximately $10,000 for health care benefits per employee. The employee pays approximately $2,000. Sharon’s plan is generous, average is probably 75/25 split. There would be a savings if the town could move to GIC, but it may be hard to get unions to make the change. In towns where GIC has been implemented, the town has saved money and the employees are “reasonably” happy. The town could save $1,250,000 by moving to GIC.
31. There was discussion about flexible spending accounts used by town employees. There is a $100 fee to participate. Only about 20-30 town employees are on it. The town will be looking for a new FSA provider/manager next fiscal year.
32. There was discussion why GIC cost is lower. Tiering helps direct people to lower cost hospitals. 330,000 members. Blue Cross Blue Shield has four times this number so Blue Cross Blue Shield should have better cost savings. Design of plan. Age of group. Cost shifting with co-pays, etc. The town has no waiting period for insurance coverage.
33. The Finance Committee would like to meet with Cook & Company twice a year.
34. The next item on the agenda was Committee Liaison Reports.
35. Brian Fitzgerald reported on Capital Outlay. They discussed some upcoming requests: (1) DPW—roads, $500,000; building maintenance, $200,000; additional vehicles, $200,000. (2) Council on Aging—request to replace both vehicles. (3) Civil Defense—request to replace windows. (4) Selectmen’s Sector—request for new copy machine. No allocation discussion yet.
36. It was MOVED and SECONDED to adjourn.
37. VOTED: 10-0-0.
38. The meeting was adjourned at 9:30 p.m.