Town of Rocky Hill
Board of Education
Joint Finance/Personnel & Negotiations Committee
Minutes of Meeting
A special joint meeting of the Finance Committee and the Personnel
& Negotiations Committee of the Rocky Hill Board of Education was held on
Mr. Lindberg reviewed the status of the review process for health benefits. In an earlier discussion he had indicated that Anthem had submitted a highly competitive bid, which might warrant the Board considering a change in vendors.
Since the Anthem numbers looked too good, Mr. Lindberg met with Anthem representatives to review their methods of calculation and uncovered an error. When corrected, Anthem’s proposal was more in keeping with the CIGNA proposal.
Mr. Lindberg indicated that recent events have made the CIGNA relationship much more appealing. He indicated that three factors were in operation. First, the Board’s experience factor was improving and consequently an anticipated deficit might be eliminated and a positive might surface in the account balance. The exact amounts are not known at this time.
Additionally, CIGNA has made significant changes to its Book of Business favoring municipal accounts. This appears to be part of a corporate strategy to capture a larger segment of the municipal marketplace.
Finally, Mr. Lindberg pointed out that CIGNA has made adjustments in its stop loss parameters for individual claims. The combination of positive experience, changes to the Book of Business, and stop loss adjustments create a favorable environment to negotiate with CIGNA.
Committee members discussed the possibility of fashioning a two-year agreement with CIGNA thereby controlling the volubility in the benefits area and helping the Board better forecast future budget requests in 2006-07.
Mr. Lindberg will investigate a two-year plan and report
back as soon as possible.
The meeting adjourned at
Respectfully submitted,
J. A. Camille Vautour
Recording Secretary
APPROVED BY: _______________________ DATE: ________________________