06-20-07 Chapter 172 Employee Retiree Insurance and Benefits Board Meeting Minutes

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As we analyze proposals we look at two things: Administrative Cost and Network Discounts. We summarize that information in a schedule to show you where they rank financially. Aetna is number one with Administrative cost of $173,000 and zero differentials. The next closest one is TML with $133,000 in Administrative cost and $211 ,000 in differentials. This is a difference in cost of $344,000 with TML and $173,000 with Aetna. By the way, Humana Network is about $600,000 dollars higher in terms of cost. As we look at Networks we have 100 Doctors in your current plan. As we look at all five proposals the number of Doctors in the plans ranges from 94 in Humana, 95 in Blue Cross, 92 in Aetna and 75 in TML. Question Robert Swanagan: Previous to Humana being our insurance carrier we could order Prescription Drugs on a three month basis. Have you guys looked at that component with these proposals? Comment Sammy Jacobs: We can do this right now but it is at the same price there just isn't discount for bulk orders. Comment Kathy Clark: When we go out for Best And Final Offer (BAFO) we will have that question answered for you. Donnie Wright Presentation continued: The last page of the Drug Analysis shows "What In." This means the carrier is neutral because the City can decide what tier it wants to place a drug in. There are eighty-three (83) drugs listed here. We have calculated what the average tier is for these drugs. For Aetna it is 2.1. This means Aetna has the highest cost to the consumer. The lowest is Pfizer which has a 1.6 the rest of them are in the 1.7 to 1.9 range. Question Matt Daeumer: I understand these tier numbers, but do they all have the same co-pays? Answer Donnie Wright: That is a plan design issue and the City sets that. It can be whatever you want it to be.