##VIDEO ID:WJUXjCCRqA0## all right so it's 1:00 so I think we'll get started here uh so again good afternoon thank you all for being here today uh this is our fourth session of Coalition bargaining for Health Care uh we appreciate you being here um it's been almost two months I guess since we last met um so we we plan to review some of the slides we've previously seen and discussed um discuss some of our updated claims reports get into any questions may have then and then provide some time for the parties to discuss um I I I think you can see at least I hope you know that our goal does remain to to reach a negotiated agreement hopefully we're able to do that uh today or or in a session pretty soon so um with that I'll turn it over to Nancy Bolton who's going to lead us through some of some of the presentation can everybody see the uh the slides show yes okay okay let me just dismiss that note okay okay so just the topics to cover that we have planned for today are very brief um we're just going to update you on the plan performance as of June 30th and the rate projection update and um just recap where we ended up on June 20th um which was the district's rate proposal to cover projected premium or plan year 2025 funding deficit through 5050 split uh District premium comparison just an update on that and Redline changes to bargaining articles and then of course a discussion so again I'm always sorry for the small font that's a lot of information you were sent this information um uh through email as well with an Excel spreadsheet but June claims came in collectively at about $20 million uh which was kind of middle of the road for this year as you know uh June can be a quiet month uh if you look at years past it wasn't in 2023 necessarily but it can be a quiet month because people are traveling and enjoying their Summers so it we of course are waiting to see what the July date looks like and that should drop in a week or so but it did um it did smooth out the actuary's projection a little bit because the actuary looks back at a 12mth uh period so they're not necessarily um calculating their projections from January to July but instead from July to July so we still have those relatively light months in the projection and so we shouldn't depend on that to think that the projection is going to um continue to improve because the claims could Spike again before the year is over so here we are again with this unfriendly model but the July projections that the actuary provided to us actually did show um that additional funding just to break even just to break even for planning 2025 is is uh a negative 48 million so that's the um the amount just the minimum amount that we would need to cover based on that snapshot in time now as you know every month as claims come in and the year becomes more mature financially that amount shifts a little bit so we've been pretty much in the $50 million window um so we shouldn't hang our hats too much on that number but the 50 5050 to 55 million window is is really what we feel most comfortable with in just breaking even that doesn't correct our blue line here which is our ending fund balance but um because as the actuary projected we had the $29 million loss uh for uh plan year 2024 and of course we've snowballed uh in the red a little bit as we project into 25 so Heather did you want to take this one or shall I continue um I can take it uh so the updated forecast is $48 million what Miss Folton stated is that that will continue to fluctuate throughout the year um because you saw that June was a little bit less U but may claims were a little bit higher so it's going to go up and down throughout the year so it's going to be somewhere in the range which is you know what we were saying before you know 50 to 60 million 48 to 60 million it really is going to fluctuate July and a August are usually High claims um so we're we're waiting for those months because that's usually when there's a lot of surgeries and doctor's appointments that are that are scheduled so it is going to fluctuate it is a forecast uh so we do know that we're averaging you know like we were uh what our estimate is uh is to look at that 50 milon dollar range and to recover around the $51 million uh to break even which may or may not break even depending on what actual claims end up uh being uh whatever slight increase we receive over that break even point would help to reduce uh that shortfall that we're going to that we already have uh in our fund balance which is the difference between what we're required to maintain um by Florida statute um and vers is what we actually have uh so we're looking at an increase of $212 per month per employee um just to break even and our last proposal um our last counter offer was splitting that 5050 so it would be 106 dollars per month per employee and $53 per paycheck which was a reduction from our initial proposal so to go through the yeah and so here are just the rates Illustrated um this is the monthly medical contributions as compared um to where we are now with 110 right now for the high option employee only for example this first row and just adding um that necessary monthly increase to each uh to each premium tier of coverage which is option one very simple just simple math it's not a simple issue but it's simple math um and then we're we've continued just to illustrate for you option two which considers more of an Actuarial rate based on the fact that you as an individual you know are worth a certain a certain Actuarial factor of one and then if you cover a child it's less expensive than covering an adult spouse and both of those are less expensive than covering a full family um you haven't indicated an interest in that we've continued to illustrate it but if you did want to uh consider that sort of funding model um we would look at the actual numbers um in detail with our actuary but this is a a model that they helped us to create so we would just follow your lead on your level of interest in continuing that study and then this is just break down um the pay period methodology uh just the 24 paychecks based on your 24 deductions and reduced if you were to if you participate if your members participate in health rewards reduce $25 instead of 50 um you know based on each paycheck because it's $50 per month if they participate fully and then finally um just again to share I think you know that um Broward is is facing some challenges as well with their costs going up Orange County did um you know most of uh the colleagues that I've spoken to have talked about having to deal with increases um and just challenges this year but as you can see we remain very competitive uh with our dependent coverage as compared to other districts and um so that's just how we've always we've always subsidized dependent coverage um and so just that's something else that I think is is worth illustrating to you all as how other districts have managed their increases over the years and then finally um just you know the updates would update the Articles to the current date and to the board's monthly contributions uh once we've been able to agree to a full funding model and that concludes the slide presentation Mr beg yeah I can we go back to the slide that has the other counties on it the other school districts sure on that slide are we saying are have they already come to agreement on this or is this projected for plan year 20225 um these are actually those are current rates yeah um I I I did speak with Broward recently I don't believe that they're um have reached an agreement yet for for future rates sorry just trying to get back to that SL so we say current rates and orange and Hillsboro they've already agreed to to the uh the the planned rate to we we see on that slide uh yeah so the rates that are shown here are current rates in effect as taken from their benefits booklets uh the orange rates were updated after their I think that these rates were imposed um on July 1 okay I'm sorry n uh and and with these when we looked at the other districts just so we have a Apples to Apples comparison are these all insured districts or are these districts to pay premiums to an insurance company Hillsboro and St Lucy are fully insured districts I believe um I just spoke with St Lucy last week and they are I believe they are fully insured and Hillsboro is also and they're insured through humano which is no longer in the medical business so um they're still contracted with them I'm not sure how that will look over time thank you Nancy yeah I'm not sure if that means that the others aren't I guess what you're saying NY we're just not aware necessarily of who is fully self-insured and or not correct correct but Broward and uh orange are self-insured yeah and you know I believe Martin is but I could confirm that but you know as we've discussed with an with an agency R size you know an employer R size it really it's it's a coste effective thing to be self-insured because for years like this and for last year when we've had negative claims we would have not only had to pay those claims and administrative costs but also you know United would have taken a profit margin and that would have been part of that calculation as well being self-insured when we have good years than predicted we get to keep those funds which is why I think our Surplus our you know our statutorily required fund balance was so healthy over that long period of time because we had some good experience uh multiple years so we were able to keep the money in our funds and it also helped us um you know to break even in these subsequent years since the pandemic when our costs have exceeded our budget just that we're going to run short of that next year unfortun Ely but that's also why we were able to not have increases in employee premiums over that time period because if we were fully insured we would have had an increase every single year of at least 5% most of um our peers when I would go attend national conferences it was closer to 10% uh when you're with a fully insured um uh Health provider versus being self-insured uh so we were able to realize the the fact that we were our actual claims were less than the national Trends going forward as a reason why we weren't having those increase in health premiums unfortunately we weren't seeing that after the pandemic um it has been consistent we did take a wait and see approach um it's unfortunate that the claims did not go back to those pre-pandemic levels um it does appear that they've somewhat stabilized but now we have to catch up for last year as well as the current year um so we do have to have an increase in premiums um it's unfortunate but that's where we're at uh we have one bucket of money available for salary and benefits and we um you know so whatever whatever is used uh for increases in benefits is not going to be available for increases in in raises so that's that's where we're at and think one of the things is is you know by last year um doing you know 10 bucks a paycheck it just we knew it was going to set us back in even further and it and it it did um so now the the situation we're in is just even that much more difficult and we're afraid that if you know we don't get Beyond this this year and and try to get back to you know you know where where drastic increases aren't as likely we're just going to keep seeing this kind of issue every every year we're going to be in the same exact position when we open up negotiations next year if we don't really get Beyond this but our thought is that if we get Beyond this maybe we can you know get back to more normal type of uh year going forward so any questions from the group you like to just go into uh caucus yeah if we could okay thank you e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e everyone I'll let them know you're back in thank you kin e Gordon go ahead and mute for hey everybody let us know when uh everybody's back I guess I think we are it's hard to tell it doesn't show everybody but okay think we're good um I think uh PBA had made a public record request or record request for negotiations um on behalf well PBA made it but we were all going to share the document for the actual Actuarial report that the the district is using is the basis for this year and I don't think that we were able to obtain that as of yet um so that kind of I don't know if the district has any information on that but that's kind of critical for us to make an informed decision about the the district's assertions derived from that so can we get an update on if that is available and when well we Nancy can send that over I mean it's um I mean it's it's not I don't think it's what you you think it's going to be it's not a 50 page document um it's just going through you know their Actuarial assumptions and it has the forecast so that is an easy document to provide the request um was quite voluminous and so that's why we were trying to work on all parts of it as to what we do have versus what we don't have um we don't have have any information claims information that's by employee because that's not how we track it you know that is hipo violation so we don't look at any of that information um so all the documents that we will be providing will be at the um you know what we look at in order to assess the plan which is at the at the rolled up level of all claims um so we can provide peac mail parts of the the requests and I I think if you want to give an update you know those are the Actuarial reports are easy to provide the uh the monthly claims report because it's derived from the monthly claims report um you've been receiving the monthly claims report since I believe it was it may of 20122 I believe you've been receiving that information um so you know those are easy documents to provide the actuary uh sends a what they call a forecast every month and um they have recently changed it in the past couple of months at our requests and it's really voluminous in data you know they breakout active versus uh diabetes Health Plan versus retirees so it's a lot of data but you'll see in the first couple of slides the negative 48 million that we're referencing and you'll you'll kind of see that month over month um the numbers that we've been reflecting to you in uh in bargaining so we had worked on pulling all of that following your original public records request um but there was some of the some of the information you wanted required some time on staff and so that's where we were um do they I'm sorry Nancy do they update that always also with the retirees and people who leave the the district um who were probably like the the more um I will say older um group who may use more of the um benefits um to to uh be more accurate I would say and how often is that done so we do have retirees in our plan the 62 to 65 year olds and when a retiree turns 65 uh they are then transitioned off our plan and onto the School District uh Consortium Medicare Supplement Plan and so we have about 500 retirees in any given time and we have to extend that benefit it's the full cost for retirees but Florida statute makes us uh compels us to continue those benefits without a break in coverage um to retirees if they choose to opt well the question I think Nancy is the reports that we received from Wells Fargo does it break out retirees as a separate bucket to know that you know how much are their claims versus their premiums that that is that's correct thank you Heather and but also about the ones who are dropping our insurance now after they leave the district not the ones that are staying on just but the ones that are actually dropping so if a person leaves in December do we count them from December through June or do we or are we using that that body here still or once they're done they're done once they're done they're done um unless they elect for Cobra but then for COBRA they would be paying the the premiums on that but it would only be if they were eligible um and they they elected to continue with Cobra but we wouldn't those I know are not tracked separately on the report I'm not sure if the retirees are but I know like Miss Bolton said um that partly was a cost-saving measure taking off the retirees were over 65 because they do not impact our health plan the the um the Consortium is not part of the District Health Plan so it's it's only now it's down to 500 retirees out of 20,000 uh members in our plan that are actual retirees so that was a cost-saving measure was not popular uh when we uh uh shifted those retirees that were at the age of 65 onto another plan I think they're doing well with it though aren't they yeah right initially though it wasn't popular just because of the unknown and the change yeah I think they might pay a little bit less for the Medicare supplement if they get on there at 65 I mean it goes up as you get older but yes um the U the new Leaf the new um the newly presented Actuarial report has a lot more data and I know it certainly breaks out the retiree enrollment not sure about the actual claims but um you know if if that is there we'll make sure we point out web page to go to but the um the do look at that implicit subsidy um with those um post-employment benefits and how much those cost the plan so that's an actual Aral report that we've received that sorry to interrupt but I didn't want to confuse the Actuarial report versus the monthly claims reports that we receive oh right the month the Actuarial report is a very short report that is you know built on all of the claims data the claims report is the one that's voluminous is that what Nancy is talking about because we give what we've been reporting since May of 2022 is just the total claims this report breaks it out by the different plans so it rolls up to the same numbers but it's it's just a lot more detailed um but that's not really I wouldn't consider that the Actuarial report that's just the claims data unless I'm unless I'm remembering what I'm remembering is not correct we just want to make sure those numbers match on both sides though too if and I know that these things take time so thank you for bearing with us but yeah if you could give us both of those the actuary and the claims data and then I'm going to meet with the Reps because they want to see all that and then we'll talk about it and then we can get back to you guys because I know that each group will they have to meet with their reps and vice versa so we'll just get back to you once we have that and then we can discuss that info and then let think yeah so I just wanted to make it clear that I mean because the reason what was taking time is we don't look at it by um individual employees so that was you know a lot of the requests were related to that um and so we were determining whether that's possible um and it's ultimately we don't feel that it's accurate information and then we're also had concerns about hippo violations as well um so so as long as you're amable to the the reports that we receive and that we have we actually have which is the actu Actuarial report as well as the monthly claims reports that we're receiving that's by plan but it's not none of it is by individual employee yeah that's fine and I responded to Jean I don't know if she's on here yeah we yeah we just looked at that yeah just look like that response is there is there something additional we could uh share today to to keep discussions moving forward or I think we just want to see because it's really nice and it helps a lot the PowerPoint but I think they actually want to see like what you guys use to make that and look at it on their own and then talk about it so that we can give a more informed answer okay well just know that really is coming from the information we have been sending since May of 2022 it's from the the total claims we understand just want to reinforce we've been giving it since May of 2022 easier to have it compiled I think especially since this is what we're talking about now well I mean the the the monthly forecasts that we receive that are detailed that the actual where he creates from the claims data will not be compiled um their individual monthly reports and then there's you know the state filing that the actuary creates but I'm not sure what you I mean what is compiled is the claims report that we provide but it doesn't include all the administrative costs and all those other things report so just to to clarify then and if we need to put it in writing and this will be from CTS I don't want to step on the toes of the previous request made by PVA but basically CTA would like every single piece of documentation produced by the actuary and provided to the district which is subject to public records in its original Source right which will be a PDF so that's how we receive it is as a PDF okay we appreciate that so um just one I guess so are we saying we're we're not coming back with any additional proposals no I think your proposal was the same and we just want to get that information to speak with our different groups before we respond okay um one of the things that you know I I think um we might want to consider thinking about too is is um you know I know it feels I well first of I would like to get another a meeting scheduled as soon as possible you know it's been almost two months since we last met I I do we do hope to you know reach a negotiated agreement as opposed to you know continuing through the impass process so um you know we're we are on a deadline and and it is kind of um difficult to meet that deadline with even starting as early negotiations as we we had um so but one of the things to even consider as as you guys are working through your thoughts and you know and what where you think we land is uh you know we're we're probably open to say some sort of two-year agreement as well so if there's you know fear of if you know going into 2025 not knowing if 2026 would it be just as high or something like that we're we're willing to entertain a lot of different options here to try to reach an agreement together so um I know as you work through your proposals keep that in in mind and consideration so that we can maybe bang this out for for you know at least this upcoming at least plan year 25 and and May 26 so we appreciate that all right um so I'll I'll have Caitlyn reach out to everybody to uh go ahead and try to get another session scheduled uh you know giving some time to for you all to review the the documents that we're going to provide from the actuary sound good thank you all right all right thanks everybody appreciate your time today all right for