HomeMy WebLinkAboutEXECUTIVE SESSION - 02/08/2015 - Executive Session Personnel CONRWAL
Elk Grove Village
Personnel Committee—Executive Session
Monday,February 8, 12:00 p.m.
Members Present: Chairman Jeffrey Franke, Members James Petri and Chris Prochno
Staff. Village Manager Ray Rummel, Deputy Village Manager Matt Roan,
Finance Director Christine Tromp, Human Resources Director Mike
Krcik, Assistant Village Manager Maggie Jablonski
Guests: David Cook, Executive Director of the Intergovernmental Personnel
Benefits Cooperative (IPBC);
Joyce Janu and Gregg Allman, Gallagher Benefit Services
The meeting was called to order at 12:08 pm by Chairman Franke.
The Personnel Committee met with the Executive Director of the Illinois Public Benefits
Cooperative (IPBC) regarding membership as well as representatives of Gallagher, who are
contractually engaged by the IPBC as third party administrators.
IPBC Membership would allow the Village to reduce its Blue Cross PPO insurance by -6% and
its Blue Cross HMO insurance by 4%. Without the change,the Village would face a 0%
increase on the PPO plan but a 6%increase on the HMO. The total savings on the HMO is -
10%. Moreover,this is a 14 month rate lock until July 1, 2017.
The only change that Village employees would see is to the pharmaceutical program. All else
remains the same. The pharmacy would change from Prime Therapeutics to Express Scripts.
Express Scripts offers considerable savings due to a wider variety of generic drugs.
The IPBC membership has grown nearly 100% over the past 2 years. This has created
significant buying power for its members. The IPBC anticipates having 100 members, 14,000
employees, and 38,000 total with family members by 2017. By bidding programs and services,
the IPBC allows members to achieve savings on their large buying power. The IPBC was
originally designed for smaller, non-home rule communities to leverage savings, but now all
medium size communities like Elk Grove are able to benefit and they are joining the group. That
is why membership is growing so quickly. The average increase for IPBC members over the
past 5 years is only 3%a year while industry trends have been 8% a year.
Finally,the Village is able to become a member of IPBC upon the Village Board adopting a
resolution to do so. The Village can likewise leave the pool with 90 days written notice.
The Committee recommends approval by the Village Board to join IPBC. However, under the
labor contracts with Police and Fire, the Village Manager needs to have the IPBC meet with the
employees to discuss the change. These meetings need to occur prior to the Village Board
adopting the change to IPBC.
The meeting adjourned at 12:31 pm.
c: Mayor
Board of Trustees
Village Manager
Deputy Village Manager
Village Clerk