That's the last um item in that part of the packet, and that's the EMS totals, and I just want to uh provide uh uh um compliments to our AMS staff and Chief Politley and the group there.

Um you'll notice in March 2026, that number was two 220 uh that exceeds um the uh total uh the total about 30,000 dollars of the next highest number that we had for that uh uh period.

So uh it was a significant accomplishment for him and his team, and it goes to show what the commission has approved as it relates to staffing and the equipment that they have that they're taking that uh those resources and utilizing them as they should be because those numbers continue to bump up.

Okay.

Is there a motion?

Okay, motion by Commissioner Strode.

Is there a second?

Second, second by Commissioner Chanel.

Any further discussion?

All in favor, ah, aye, any opposed by like sign?

Motion carries item four informational items.

Once again, info only on item F.

I do want to correct uh Rocky Atkins's A D K-I-N S.

And that's it.

All right, let's move to item five work session, employee health insurance update and renewal.

And I believe Mr.

Jeff Trude is here with us today from the BM group, and we look forward to hearing from you as always, Jeff.

Thank you.

Thank you.

It's all yours.

Thank you.

So thank you, sir.

Here are happening again.

Never so good to see everyone.

Um again, my name is Jeff Truitt, uh senior benefit advisor uh with BIM group.

Uh fortunate um privilege of working with the city for a few years now.

Um kind of get a better feel of how the plan has been moving.

Um has been a good working relationship in regards to trying to understand budget, um employees needs um and things along those lines.

So I want to kind of start at kind of the end of the movie first uh and kind of go over kind of the numbers and then I can kind of go through some reports and talk to you around why the numbers are where they are and uh why we feel that way.

So health insurance is obviously the the biggest piece of the puzzle puzzle when it comes to a benefit, but then also when it comes to a budget.

Uh so this year uh the budget increase uh is 4.3 percent um with no benefit uh plan design changes uh at all.

I do want to point out that we have seen some growth in the number of employees that are covered under the plan.

So we now have 164 employees, uh, and a lot of those are covering their dependents.

So there are 394 covered lives under the program.

So almost 400 people uh are benefiting from the program that the city offers.

Um very good news with our other benefits as well.

Uh the dental, um there's no uh change there in the plan design or the rates, the vision.

Uh we have been working on an analysis um for a few months now in regards to um the vision coverage was actually embedded in the medical plan.

And we used to see more of those in years past, but we decided to kind of break it out a little bit and look at um what the benefit is, what the cost is, and is there something better?

So the benefit is a 150 basically an allowance, and while that is nice, um the employees don't have the advantage of of using a network.

So that 150 is full retail.

They can't get very much for that.

Um so we looked at what the cost that is run through the benefit plan uh was over the past few years and looked at that average.

Could we take that same money, go out and purchase an actual insurance contract and you know give that to the employees uh just so we're not taking something away.

Um so we've done that.

We've been able to uh look and go to an RFP um, look to a carrier that's using the VSP network.

So they're not paying full retail, they're getting discounts for that.

They've got co-pays for glasses, lenses, frames, and uh contact lenses.

So we feel that that's going to be an enhancement uh as a vendor benefit and does not cost uh that much more than what they were experiencing before.

So we feel that that'll be a good enhancement going forward for this year, and then we'll communicate that to the employees.

Jeff, what was that percentage increase last year on health?

On the health insurance.

So it was a little higher.

It was it was about nine, maybe even nine and a half.

Um that's good.

It is, and I'll I'll go over on the next slide a little bit of reporting because I want to put that kind of in context back even a few more years because when we don't hit the budget, we're going over the budget, and then we're having to pull out a general, right?

Which we don't know, we don't want to do that.

Um last piece on this page is the the life and disability uh coverages uh are remaining the same uh for the next uh plan year.

All right, this is the um the slide that I was referencing, and it's a nice historical going back over 10 years when we look at uh the number of covered employees, um, what the claims costs were, uh, the fixed cost, and then how the plan has performed in two variables.

One is um the gross number.

You know, back in 2014, we only had 133 people covered.

Now we have 164.

It doesn't take very many people compounded over 12 months to make a big difference on the gross number.

So we looked at it on the gross number, and then we break it down into per employee per month, and that's what I've got color-coded across the bottom in blue is what is the gross increase year over year, and then what is the per employee per month.

So you can see from 14 to 19, things were starting to run away from us at a pretty good clip year over year.

Um I think the city made a wise decision quite a few years ago, probably 10 or 15 years ago now to move to a self-funded contract.

There were some changes in the industry in regards to certain providers leaving the market.

Uh, the network that the city was able to get wasn't um didn't have tremendous number of discounts at that time.

So you can see on in 2000, right there, and then the beginning of COVID, uh, we kind of came in, did an analysis, made the network uh change to anthem.

Since we've done that, it is uh remained um you know pretty flat, even some some rate decreases in there.

Um now I have highlighted in the current plan year that our claims cost are up 27% over the previous year.

So normally I would not be delivering a 4.3% increase.

We would be looking at something dramatically better.

There's a couple things that I want to just go over that um why we feel that a lower increase is warranted.

One is there's about a 70,000 stop loss reimbursement that is coming in that hasn't hit yet, but it definitely will hit in this year.

We had some higher cost claimants that occurred in the beginning of our plan year that are no longer on the plan.

And then on our last five months of data, we have been running at 60% of budget.

So 100% would be right at budget.

So we've been running 60% for five months in a row, gives us additional comfort that this is actually good.

Um little bit of additional reference.

Plan years 2001, 2002, 2003, we were slightly over budget.

So when I came here last year, I felt like we needed to get it up a little bit more just so it's a fine balancing act on what we're trying to do, but with doing that, the plan reserve first itself just a little bit, and you can see the um the gross cost and the per employee per month finished the 24 plan year quite nicely.

That then allowed us to start building some reserves again, um, which we had not been able to do in the three previous years.

So that takes a little bit of the pressure off the plan in that we know that we're gonna have a bad year to just go, you know, it will happen every three to five years, we will have a bad year.

We will have a bad year.

Um, and then we will be able to uh try and normalize that out a little bit.

Any questions before I so this breaks it out just graphically.

Um, so this is um net claims, and we call it net claims because it is there's no fixed costs, no administrative fees, no stop loss premiums.

We include the stop loss reimbursements, and then we include the pharmacy rebates.

So by being a self-funded employer, those pharmacy rebates don't sit with the insurance carrier, they flow back to the employer, which are then used to offset cost.

So we use that to um bring down the budget.

Um so graphically you can see a little bit.

We're still had a little bit of an uptick, but we think you know, that's data through the end of February.

We have three more months to go, and we believe that that will kind of normalize and come down.

Not sure it'll get all the way down to the 24-25 plan year, but we think it'll kind of come more in line with what we've seen.

So this is a nice chart.

It um you know reflects uh something different um than what we see with a lot of our other clients.

So pleased about that.

This page really kind of tells the the story.

Um the dark blue at the bottom are claims that are individuals that have less than 47,500.

That 47,500 is half of our stop loss deductible.

So anything that's half goes on to a trigger report.

So the light blue are the individuals that had claims over 47,500, and the red diamonds correlate to the right side of the graph to show how many.

So in 2021, we had 10 individuals that represented 55% of our claims.

In 22, um, you know, we had nine, twenty-three, we had nine, twenty-four, we had nine, and they all been pretty consistent.

So about half of our claims are coming from a very small portion of our population.

The other thing is it's not always the same people.

So we have to kind of be prepared when when some come off know that there's others to kind of take their place.

So this is not unique uh to the city of Winchester.

This is uh a national um situation.

So we are trying to put things in place to try and reduce cost, um, review pharmacy uh things along those lines, and we've been able to somewhat achieve that without um disruption to the membership.

Uh this breaks down um what the employee contribution is and what that impact is.

So the 4.3 percent uh that is broken out with the city paying 95% of that number and the employees picking up five percent.

So I've broken that um percentage out into a dollar amount, broken it out between the city um and the employees, and then these are monthly numbers here.

Um, so you can see it's a uh a few dollars per month, depending on um how they're enrolled in coverage to what the impact to their their paycheck is, and that's what I have.

Okay, any more questions for Jeff.

Looks like we're doing pretty well so far.

So far, so good.

That's right.

Um it uh it's definitely a different story than than what we're what we're seeing, and with having a little bit of higher rate increase um last year, it's good to come back and have one that's a little bit of a lower end, and um have built up a little bit of reserves and Shannon and Hannah been uh great help uh in institutional knowledge of the plan and then asking really good questions and um walking through the process.

Either one of you all have a comment on the well, we're basically an anomaly here, right?

Uh definitely for this year, yes.

Yeah, you know that that we're able to point our plan and and and look at dire straight six months.

That that's a good point.

Um what we are seeing with the majority of our plans is um increasing deductibles and and max out of pockets.

Um that's a way to um basically your cost shifting, you're shifting that cost to try and keep premiums down or payroll deductions down, but you're shifting that burden over to the employees and their families.

We're not doing that.

Um, I think it's important to point out that for it it would range in an increase per pay cycle, then you're from $2 to $6.

So it's very nominal to our employees, which I know is something that we all strive for is supporting our employees and keeping with the it's a 90-10 split, right?

95.

That's why I have 910 right now.

Yeah, um, I do think that's good.

We need to look and forecast into the future about what the sustainability is of our health insurance plans moving forward and what it looks like.

Um just again, so it can be sustainable for the budget um for our employees, but also that we can make sure we still have reserves and a healthy reserves at that because you're right, like this might be an anomaly, but we don't want to be an anomaly that then puts us in such a bad spot that we're a little over our head.

So I think personally, if the recommendation from the finance department, the city manager is um to move forward and support this plan.

I mean, when we sat in our meeting, I agree with it, and I would motion to move forward with it.

Oh Jeff, would you mind to explain to everybody about the stop loss and all like that?

And so the stop loss is a piece of a self-funded plan that limits the liability um of the organization employer or municipality.

There's two pieces of stop loss coverage that we purchase and we pay premiums for those.

One is to limit um the city's maximum exposure on an aggregate level.

So it's called aggregate reinsurance.

I think I've said this for we used to say if there was ever a global pandemic, this would be and that actually happened.

So um it's not any one claim, it's a pattern of a whole lot of smaller claims, which raise up so in gross number, we don't go over this number, this so we track and send reporting um to city manager and to finance on a monthly basis, and we track it versus the budget, and then we track it against the maximum exposure.

So that's the first piece.

The second piece is um an individual uh deductible.

So um it's an infinite amount of coverage as long as the claim occurs within the plan year, but we have a 90,000 dollar deductible.

So once the claim goes over 90,000, we're detached, we don't pay anymore, and that liability is picked up by the stop loss carrier.

We also, I'm sorry, we also RFP um that every year that's the one piece that is um it's a very important promo protection, but doesn't really have any interaction with um the employees or plan, it just sits on top of it.

So it's very easy for us to pull that leg of the stool out and put a different one in.

Um, and we have in the past, um, but this year our current um uh provider came back.

Um we use the leverage of where the other carriers were to get them down to talk about this better.

Are we what do other cities do with their employees insurance-wise?

Are we way up there?

I hope um I would say that you are um the plan design is um I don't think it's it's out of the box um overly rich.

I think it's definitely above average, and then I would say your contribution level is definitely above average.

So we know that this piece is important um as health insurance rises in the private sector and additionally the public sector.

Um those increases impact budgets.

Um and the more unfortunately that is eaten up on the health insurance side, the less goes to other um needs of the city.

Okay.

Those of us that have known you for years know that Bim is always worked for the city, and you've been a great partner for us.

And I think Shannon and Henna have done a great job on uh being on that committee and working with you.

And um, let's just keep the numbers where they need to be.

Best we can.

We'll do our best.

Thank you very much.

Okay, thank you.

Thank you very much.

Okay, back to the agenda.

And uh sorry, I no, that's okay.

I just didn't it was on the 5 30 meeting to vote.

Oh that's all right.

All right, item six comments from the mayor, commissioner, city major, and city attorney.

Uh let's start with uh Commissioner Chenal.

I have no okay, Commissioner Strode.

Um we're working on beer cheese.

We've got another meeting um next week.

Money's coming in, which is wonderful with Whitney gone and Alicia and then bless their hearts or taking the money.

It's hard to do it, but you got to keep it in this building.

So rock the blocks money are coming in, so we're pioneer festival.

So I think when the business sees me coming, they want to shut the door because they know I'm asking for hold on.

Yeah, for a second.

But um, this community is so giving, as you all know.

So it's always like to get credit for credits due of everybody pulling together for what's good in this community.

And I had to call Brian this morning about putting the stage up this weekend, and um it's gonna go up in the afternoon, but not come down until 11 30 at night.

So those guys are gonna be a little bit late up on Depot Street.

So thank goodness we have it though.

It's used a lot.

So thanks again to the public works for taking care of it and being responsible.

So I appreciate it, Brian.

Anything else?

That's yeah, Mr.

Cox.

Uh, this past weekend I had people in here from work camp, and we went out and did the site right up on 54 homes that we'll be working on in uh July, and uh uh in fact in May we we had three people that uh wouldn't answer the phone, wouldn't answer the door uh despite numerous calls, and they all three called today.

When are they gonna come to my house?

Well, we called you 11 times on Saturday.

We didn't answer the phone.

Sorry.

I felt big at big big thing this Sunday afternoon with the recent for the boys and girls basketball teams at the high school, and a clarification.

Everybody says that this is the first school since 1928 to win boys and girls in the state year in the same year in 1928, Ashland won, but they played six on six girls' basketball, where you you had three girls on the offensive end, three on the defensive end, and they could not cross half court.

It was entirely different sport from what it is.

So, what did they wear?

Uh I have seen pictures of Miss Christine Elkin.

Can you remember?

No, I remember her.

Miss Christine Elkin played on the girls' basketball team at Trapp High School that Ashland beat in 1928.

And they played in what were referred to at the time as bloomers.

Yeah, that's what I thought.

Uh the years I coached the girls' basketball team at the high school, you always had these instances where you would go especially to eastern Kentucky, and I I will never forget we played Whitesburg one year at Whitesburg in a regular season game, and they had four girls on the team, including three that started that played in skirts.

Yeah, never know.

And but that that was a very interesting dynamic to know that you play you never see that anymore, but I mean that was that was 1989 or 90, I think.

Whitesburg had three girls that played the skirts, and another one that came off the bench.

But there's a picture, and I and I have a copy of it somewhere at my house of trap that came in second in the state tournament with girls, and Miss Elkin is in it.

And uh and they played what was called six on six girls basketball, but it was actually three on three at each end of the court, and you couldn't cross the mid-court line.

Interestingness in progress.

Anything else?

No.

Okay.

Commissioner Toole.

I'll reflect uh Commissioner Cox's sentiment.

And please join us for the parade Sunday, 5 p.m.

And please wear um some red cardinal tire.

Some wearing 80-something degrees.

It's gonna be a summer parade.

Is it it?

Okay, city manager.

No, ma'am.

I have enough to say at the 5 30 meeting.

I don't want to talk this meeting.

Okay, Mr.

Dykeman.

No there, all there, all there, on there, thank you.

Thank you.

That's a unique dynamic.

Okay, and I have nothing at this time.

So, Mr.

City Manager, do we have anything for closed session?

No, ma'am.

Mr.

Dykman, do you have anything for closed session?

No, I don't.

I don't.

Any of the commissioners have anything for close to say?

Closed session.

No.

That's that.

Okay, then I'll take a motion to uh adjourn this meeting and we'll be back in here at 5 30, ready for our next one.

Is there a motion?

So move.

Motion by Commissioner Cox.

Is there second?

Second by Commissioner Toole.

All in favor, aye.

Aye.

Any opposed by a like sign?

Motion carries.

We are adjourned.

Uh Kenny's gonna.

Oh my god.

Uh