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Employee trust reports $2.2M in program savings and growth to 6,500 members

Preston City Council · November 25, 2024
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Summary

The employee health trust reported membership around 6,500, an annual budget near $37.6 million, about $2.2 million in savings from programs last year, rising stop-loss claims, and expanded telehealth and mental-health services. Trustees urged agencies to budget for periodic claim volatility.

A representative for the employee trust presented the organization's annual report to the council, saying the trust now covers roughly 6,500 people and reported an annual budget of about $37.6 million last year. The presenter said program changes and contract negotiations generated more than $2.2 million in savings during the year.

The report highlighted prescription rebates approaching $2 million, the roll-out of telehealth and digital physical therapy (popular in rural areas), a new pharmacy vendor (Smith Rx), and the rapid growth of a trust-run mental-health program that recently surpassed medical as the largest program administered by the trust. The trust also reported higher stop-loss and catastrophic claims last year, citing one member claim near $4.2 million.

Trust staff reminded the council that medical claim cycles run roughly every 3–5 years and recommended budgeting a reserve (about 10%) to mitigate bad-year impacts. Trustees plan to expand regional mental-health wellness teams and asked agencies to encourage employee participation in wellness screenings.

Councilors asked clarifying questions about vendor names and subrogation recoveries; the presenter identified the subrogation vendor as Davies and described improved recoveries compared with the prior vendor’s performance.