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7-9-13worksession

St. Charles City-County Library District

Board of Trustees

Work Session

Minutes

July 9, 2013

 

The St. Charles City-County Library District Board of Trustees met at 6:00 pm on Tuesday, July 9 at the Kathryn Linnemann Library located at 2323 Elm Street in St. Charles, Missouri.

Board Members present:

  • Jerry Cook
  • Myra Crook
  • Georganne MacNab
  • Mary Reese
  • John Thoelke
  • Gail Zumwalt

Board members absent:

  • Debbie Haupt
  • Joann Leykam
  • Lisa Pelikan

Library Staff present:

  • Jim Brown, Director

President Jerry Cook called the meeting to order at 6:10 pm.  Six members of the Board responded to roll call.

The Patient Protection and Affordable Care Act (PPACA)

Director Jim Brown provided the Trustees with information concerning PPACA and its implications for the St. Charles City – County Library District. The information included:

  • A brief summary of PPACA
  • Review of SCCCLD policies and pay practices
  • Review of medical insurance options
  • Options for implementation of PPACA
  • Director’s recommendations

Brief summary of PPACA:

Three primary intents of PPACA

  • Expand availability of health insurance.
  • Regulate health insurance coverage.
  • Restructure health care delivery and payment.

PPACA’s mechanisms for this change include:

  • Expand Medicaid
  • Establish federal or state insurance exchanges
  • Require individuals to obtain insurance
  • Mandate employers with 50+ employees to offer health coverage to full time employees (PPACA redefines full time as an average of 30 service hours per week)

PPACA enforcement for employers works through penalties. Employers may be charged penalties for:

  • Not offering insurance to fulltime employees
  • Offering “unaffordable” insurance
  • Offering a substandard medical plan

PPACA’s original implementation was scheduled for January 1, 2014. Requirements for employers in 2013 included:

  • Audit of service hours in 2013
  • Determine number of full time employees
  • Report covered employees and value of the medical plan
  • Communicate availability of insurance options to employees

Review of District’s policies and pay practices

The District conducted a preliminary audit of employees during the first quarter of 2013. The District had 207 FTEs with 402 staff members. The audit indicated the District had:

  • 72 Full time staff (40 hours a week)
  • 246 Part time staff (28 hours or less budgeted per week)
  • 84 Temporary employees without set hours

The audit also showed that of the part time staff:

  • 121 Part time employees had worked additional hours as part of the District’s “Float Pool”
  • 19 employees met the 30 hour weekly average set by PPACA as full time

Prior to PPACA, under policies E111 and E480, the District had allowed employees to work a maximum of 1499 hours annually. Benefit hours (annual, sick, holiday leave) were not included in the 1499 limit. Actual hours worked were tracked for LAGERS retirement plan.

PPACA requires tracking of all service hours and considers full time as an average of 30 service hours per week. As a result of the new PPACA rules and the audit, part time staff was directed to limit service hours to no more than 28 per week. This would meet requirements for both LAGERS and PPACA. Because of the change from tracking only hours worked to all service hours as mandated by PPACA, some part time employees could see a decrease in total earnings because benefit hours now had to be included in the total number of hours calculated.

Medical Insurance Options

Based on survey work performed by the District’s insurance broker, the District has 402 employees with 72 forty hour per week employees who would be eligible for insurance. The District also has 120 other employees who would potentially be eligible for insurance under PPACA. Based on these assumptions the District’s insurance broker provided information on possible PPACA compliance options.

  1. Keep current plan with 72 employees (approximate cost $500,000)
  2. Include all 192 potentially eligible employees (approximate cost $1,400,000) this is a conservative estimate based on single employee coverage for an additional 120 employees.
  3. Reduce plan value to 60% and include all 192 potentially eligible employees (approximate cost $1,000,000) this is a conservative estimate based on single employee coverage for an additional 120 employees.
  4. Terminate medical plan and pay penalties (approximate cost $800,000). This option is not under consideration.

Director’s Recommendations

Full PPACA compliance is required by January 1, 2015.

The “measurement period” during which the District must analyze service hours reported by all employees is October 2013 to September 2014.

The following items were recommended by Director Brown:

  • Staff should continue to limit service hours to 28 per week.
  • Continue to monitor developments associated with PPACA.

Questions and discussion followed the presentation.

The work session concluded at 7:05 and the public meeting began at 7:15 pm.

Respectfully submitted,

Jim Brown, Director

 

Approved:

 

 

Secretary Board of Trustees      Date