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City hears annual report from employee health trust that reported $4.2M in estimated program savings
Summary
A presenter reported the trust covers roughly 124 agencies and a $42.5 million budget for 2024-25, estimated $4.2 million in program savings, four members currently over stop-loss and recommended agencies budget 10% for renewals.
The Star City Council received the 2024-25 annual report from the employee health trust on Nov. 18, which the presenter said covers about 124 agencies, roughly 2,500 employees and about 6,400 plan members and operates with an annual budget of approximately $42.5 million.
Presenter Megan Lockwood said the trust's programs and pharmacy management contributed to an estimated $4.2 million in savings for the plan year. "We had 95% participation by agencies in our on-site wellness screenings, and our program savings were an estimated 4,200,000.0," she said, and noted pharmacy rebates of about $1.9 million (a 3% increase) after a PBM change to Smith Rx in October 2024.
Key details: Lockwood described stop-loss (catastrophic) insurance with a $475,000 deductible and reported that four members had hit stop-loss as of the report date; she said the trust's incurred-but-not-paid reserves (IBNR) were about $2.9 million, a 1% increase from the prior year. She added that 32 high-claim members comprised about 0.6% of the trust but accounted for 22% of paid claims.
Budget implications: Lockwood recommended agencies budget roughly 10% for renewals as a cautious planning figure, though she said the trust aims to come in lower. Council members pressed for clarification on whether the "10%" was an increase or a planning cushion; Lockwood said it is a recommended budgeting assumption to guard against medical and pharmacy inflation.
Wellness and utilization: The presenter said 1,230 members were screened (about 37% of eligible employees and spouses), identifying several elevated PSA results and 2 melanomas and 31 non-melanoma skin cancers among dermatology checks; she urged continued emphasis on screenings and enrollment in cost-saving pharmacy programs.
Next steps: Council members asked staff to provide more detailed budget breakdowns in future quarterly reports; Lockwood offered to work with staff on participation and program enrollment details to help control renewals.
