The Kentucky Association of Counties, Inc. Medical Benefits Committee held an annual meeting upon adjournment of the KACo Insurance Agency Board of Directors meeting on Wednesday, March 24, 2022. This meeting was held at 400 Englewood Drive in Frankfort, Ky. and via video teleconference, pursuant to proper notice given in accordance with KRS 61.823, 61.826, 65.312(3) and 2020 Ky. Acts ch. 73 sec. 1(8)(b).
The roll was called. The following committee members were present: Chairman Phil Sammons, Boyle Co. Magistrate and KACo President; Amy Milliken, Warren Co. Attorney and KACo President-elect; Stevie Givens, Butler Co. Magistrate; Alex Barnett, Harrison Co. Judge/Executive; Steve Henry, Webster Co. Judge/Executive; Ronnie Akers, Floyd Co. Magistrate; Jim Henderson, KACo Executive Director/CEO; and Temple Juett, Director of Insurance and Business and designated representative for KACo.
Others participating included: Tim Sturgill, General Counsel; Karen Basham, Chief Financial Officer; Andrea Morse, Insurance Agency Manager; Marie Skinner, Accounting Manager; Kris Dunn, Associate Director of Insurance; Kelly Harding, Peel & Holland Financial Group; Jesse Penn, Computer Support Specialist; and Sonya Chesser, Executive Assistant to CEO/Director of Administrative Services.
Chairman Sammons called the meeting to order at 2:53 p.m.
Motion made by Alex Barnett, seconded by Stevie Givens, to approve the minutes of the March 31, 2021 meeting as presented. Motion carried.
Ms. Basham presented and discussed the pro forma balance sheet as of December 31, 2021 and pro forma income statement for the six months ending December 31, 2021.
Motion made by Amy Milliken, seconded by Alex Barnett, to approve the financial report. Motion carried.
Mr. Harding presented and discussed the 2022 Anthem Association Health plan. He said the final negotiated renewal includes an increase of 9.5% or $46,688,000 in annual premium. The plan includes Anthem's Get Strong Wellness program. He recommended cancelling the no copay telemedicine program due to the low participation and cost and instead revert to traditional copays built into the plan designs, which will be HSA compatible.
Motion made by Amy Milliken, seconded by Alex Barnett, to accept the Anthem proposal of up to a 9.5% increase including the elimination of the no copay telemedicine program. Motion carried.
Mr. Harding presented and discussed the administrative expense projections for plan year 2022. The administrative fees with Capstone Administrators and operating expenses remain the same. He said there has not been an increase in agent commissions for at least 20 years. Commissions are paid on a per employee per month basis with the current commission rates being $32 for groups of 2-50 enrolled employees and $28 for groups 51 and over. He requested approval of a 50 cent commission increase per employee per month.
Motion made by Amy Milliken, seconded by Stevie Givens, to approve a 50 cent commission increase per employee per month. Motion carried.
Mr. Harding said the Association is in its second year of a two year rate guarantee with Delta Dental.
Mr. Harding presented and discussed the population and claims data through February 2022.
The next annual meeting will be held in the first quarter of 2023 to coincide with the KACo Insurance Agency quarterly meeting.
Chairman Sammons welcomed Squire Akers and County Attorney Milliken to the board. He asked board and staff to introduce themselves to the new members.
Motion made by Stevie Givens, seconded by Alex Barnett, to adjourn the meeting at 3:53 p.m. Motion carried.
