(505) Mr. Lowell Irby, President, called the NMPSIA Board Meeting to order at 9:00 a.m.

Transcription

1 NEW MEXICO PUBLIC SCHOOLS INSURANCE AUTHORITY BOARD MEETING MINUTES Cooperative Educational Services 4216 Balloon Park Rd., NE Albuquerque, NM (505) CALL TO ORDER Thursday, October 3, 2013 Mr. Lowell Irby, President, called the NMPSIA Board Meeting to order at 9:00 a.m. on Thursday, October 3, ROLL CALL Present: Lowell Irby, President Jose Cano, Vice President Mary Parr-Sanchez, Secretary Tonya Carrell Tim Crone Bob Lowery Esther Marquez Daniel Patterson Millie Pogna Mark Space Kathy Ulibarri Absent: Staff Members Present: Sammy J. Quintana, Executive Director Christy Edwards, Deputy Director Don Gonzales, Comptroller Ernestine Chavez, Benefits Manager Norma Henderson, Finance Manager Pamela Vigil, Executive Assistant

2 Audience: Martha Quintana The Standard Jerry Mayo CCMSI Michael Simpson BCBSNM Greg Ramirez CCMSI Albert Rhodes BCBSNM David Poms Poms & Associates Ralph Montano Erisa Richard Cangiolosi CCMSI Steve Valdez Presbyterian Kevin Sovereign CCMSI Amy Daily Express Scripts Tom Logan Coppler Law Firm 3. INTRODUCTION OF GUESTS Mr. Sammy Quintana, Executive Director, NMPSIA introduced Mr. Tom Logan, Coppler Law Firm. 4. CITIZENS TO ADDRESS THE BOARD There were no citizens to address the NMPSIA Board. 5. APPROVAL OF THE AGENDA (Action Item) A motion was made to approve the agenda as amended. MOTION: J. Cano SECONDED: M. Pogna 6. APPROVAL OF THE MINUTES- September 5, 2013 (Action Item) A motion was made to approve the minutes as presented. MOTION: J. Cano SECONDED: E. Marquez 7. ADMINISTRATIVE MATTERS A. Adoption of Eligibility for NM Same Sex Marriage (Action item) Ms. Edwards stated that State District Court Judges in the First and Second Judicial District have issued orders requiring the respective County Clerks to issue certificates to same sex couples. She indicated that based on recommendation from Mr. Coppler, NMPSIA should recognize these spouses as eligible for benefits. She stated Erisa will code these differently to allow for termination of coverage should the Supreme Court overturn these marriages.

3 A motion was made to approve the recommendation of NMPSIA General Counsel as presented. MOTION: T. Carrell SECONDED: T. Crone B. Approval to Add Aces (Action item) Ms. Christy Edwards, Deputy Director, NMPSIA recommended approval to add Aces to the NMPSIA membership pool. She indicated that Mr. Frank Coppler stated that Aces qualifies as an educational entity. Ms. Edwards stated that if this is approved it will be effective November 1, A motion was made to approve the recommendation to add Aces to the NMPSIA pool. MOTION: J. Cano SECONDED: E. Marquez 8. FINANCIAL MATTERS 8. A. Investment Reports (Action Item) Mr. Gonzales reviewed the Short-term Investment Report for the period ending August 31, The Employee Benefits Fund Wells Fargo Depository Account reported interest income in the amount of $53.33; the Wells Fargo Short-term Investment Account reported interest income in the amount of $1,801.16, the Local Government Investment Pool reported interest income in the amount of $3, The combined year to date total interest earned was $11, For the period ending August 31, 2013 the Risk Fund Wells Fargo Depository Account reported interest income in the amount of $61.52; the Wells Fargo Short-term Investment Account reported interest income in the amount of $2,147.75; the Local Government Investment Pool reported interest income in the amount of $5,056.60; the combined year to date total interest earned was $9, Mr. Gonzales reported that the Long-term Investment portfolio had interest income in the amount of $34, and Capital Depreciation the amount of $527, through the period ending August 31, Management fees amounted to $0. The Long-term Investment portfolio was valued at $25,885, as of August 31, A motion was made to approve the investment reports as presented. MOTION: E. Marquez VOTE: Vote carried unanimously SECONDED: M. Parr-Sanchez

4 8. B. Financial Reports (Action Item) Mr. Don Gonzales, Comptroller, reviewed the financial reports for the period ending August 31, The Operations Fund had revenues in the amount of $107,200; expenditures in the amount of $99,358; resulting in a surplus of $7, Year to date revenues were $214,400; expenditures were $185,037; resulting in a surplus of $29,363. The Ending Fund Balance as of August 31, 2013 was $885,881. The Employee Benefits Fund reported revenues for August 31, 2013 in the amount of $22,287,831; expenditures in the amount of $24,392,965.; resulting in a loss of $2,105,135. The year to date revenues were $45,429,865; expenditures were $49,517,289; resulting in a loss of $4,194,624. The ending fund balance as of August 31, 2013 was $29,352,967. The Risk Coverage Fund reported revenues during the month of August 2013 in the amount of $4,942,064; expenditures in the amount of $5,914,843; resulting in a loss of $972,779. The year to date revenues received were $10,554,953; expenditures were $13,990,239; resulting in a loss of $3,542,486. The Ending Fund Balance as of August 31, 2013 was $8,435,646. A motion was made to approve the Financial Reports as presented. MOTION: R. Lowery SECONDED: T. Crone 8.C. Review of Professional Services Contracts Mr. Don Gonzales provided samples of invoices from NMPSIA vendors for review. Mr. Cano questioned if it would be possible to receive a breakdown of hours and a detailed description of work performed. Ms. Parr-Sanchez inquired whether a uniform policy for invoices would be necessary to keep track of work and services. After a lengthy discussion Mr. Gonzales stated that he will request back up information with respect to invoices to ensure a better accounting of services and billing. 9. BENEFITS ADVISORY COMMITTEE REPORT 9. A. Approval of Part-time Resolutions (Action Item) Ms. Edwards reported that there was one Part-time Resolution for review and approval from Chama Schools. A motion was made to approve the Part-time resolutions as presented.

5 MOTION: D. Patterson SECONDED: M. Parr-Sanchez 9. B. Proposed Changes to Mitigate the Increased Costs of Federal Health Care Reform (Action item) Ms. Edwards explained that there was a lengthy discussion at the BAC with respect to this item. She indicated that it is the recommendation of the BAC to instruct staff and Segal to develop cost containment plans and prepare a faq sheet. A motion was made to approve the development of strategies to mitigate the increased costs of Federal Health Care Reform. MOTION: D. Patterson SECONDED: K. Ulibarri 9. C. Report on Rational Med 6 Month Results (Action Item) Ms. Edwards reported that this was a free 6-month trial through Express Scripts. She indicated that the recommendation of the BAC is to implement physicians portion of Rational Med and investigate expanding it to include member communications. MOTION: D. Patterson SECONDED: R. Lowery 9. D. Approval of Benefits IBNR Increase for FY 13 (Action Item) Ms. Edwards reviewed Aon Hewitt s IBNR methodology and report. The recommended increase in reserve is $1,948,263 due primarily to higher Paid claims in July A motion was made to approve the IBNR increase for medical, dental and Rx for FY MOTION: R. Lowery SECONDED: K. Ulibarri 9. E. Erisa Report Ms. Edwards reported that Mr. Gerry Hwa, Erisa made a brief presentation to the BAC with respect to the online system. There will be an update at the next meeting.

6 9. F. Update on IBAC Ms. Edwards stated that Ms. Ernestine Chavez provided a brief update on the IBAC to the BAC. 9. G. LESC and ASBO Presentation Ms. Edwards reported that she and Mr. Quintana made a presentation to the LESC in Clovis, NM. She indicated that she also presented at the ASBO meeting in Las Cruces on Health Care Reform. 10. Risk Advisory Committee Report 10. A. PropertylLiability Monthly Claims Report Mr. Greg Ramirez, CCMSI, reported on the Property/Liability Monthly claims report as of August 31, He indicated that during the month of August there were a total of 341 open claims, 66 new claims and 67 claims were closed. Mr. Ramirez reported that reserves were at $17,769,189.05, payments were $14,717, for a total of $32,486, B. Property/Liability Large Loss Report There were no large losses to report. 10. C. Worker s Compensation Monthly Claims Report Mr. Jerry Mayo, CCMSI, reported on the Workers Compensation Monthly Claims Report as of August 31, Mr. Mayo reported that during the month of August there were a total of 1189 open claims, 15 claims were re-opened, there were 198 new claims, and 264 claims were closed Workers Compensation Large Loss Report There were no large losses to report 10. F. Workers Compensation Form Policy Per NMAC Mr. Mayo discussed Workers Compensation Form Policy Per NMAC. He indicated that the RAC spent a great deal of time discussing possible revisions. He indicated that the recommendation of the RAC is to bring back a proposed policy to include revisions for board approval.

7 10. G. Bill Review Discussion Mr. Cangiolosi stated that a letter was drafted with respect to the ongoing Bill Review Discussion. He indicated that the recommendation of the RAC was to draft another letter that is less insistent. 10. H. Contract Discussion Regarding LEA Certified Police Agency (Action Item) 10. I. Contract Discussion Regarding Security Companies (Action Item) Mr. Quintana explained that these two items were both discussed together at the RAC. He indicated that the recommendation of the RAC was to provide a model agreement to schools and let them decide which one to use. A motion was made to approve the recommendation of the RAC as presented. MOTION: T. Crone SECONDED: M. Pogna 10. J. Whitener Case-NM Supreme Court Update Mr. Tom Logan, Coppler Law Firm reported on the Whitener Case-Supreme Court Update. 11. NEXT MEETING DATE AND LOCATION The next meeting will be held on Thursday, November 7, 2013, at the Cooperative Educational Services, 4216 Balloon Park Road, NE, Albuquerque, NM EXECUTIVE SESSION AS PER OPEN MEETING ACT (H) (7) There was no executive Session. 13. ACTION, IF ANY, COMING OUT OF EXECUTIVE SESSION There was no executive Session. 14. ADJOURNMENT The meeting adjourned at 11:11 a.m.

8 APPROVED: