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PEBB Operations Subcommittee Minutes, May 9, 2006
Public Employees’ Benefit Board
Operations Subcommittee
Tuesday, May 9, 2006, 9:30 to 11:30 a.m. - Minutes
Board Room, PEBB
775 Court St NE, Salem OR
Approved 6/13/06

Subcommittee Members Present
Paul McKenna, Chair
David Hartwig
 
Diane Lovell
 
PEBB Staff Present
Bobbie Barott
Dena Comer
Isabel Joslen
Lydia Lissman
 
Susan Pritt
Rick Schoonover
Jean Thorne
Guests Present
Gordon Hoberg, ODS
Megan Myrick, Willamette Dental
Paul Pfinster, AFLAC
 
Kim Waldroff, BenefitHelp Solutions
Kim Whitley, Samaritan Health Plans
 
Agenda
Welcome
Approval of Minutes: April 11, 2006
Customer Service Team Update
Policy Option Packages
2007 Agency Administration Assessment
Contract Recommendations
Advisory Group Report
Rural Address Issue
Public Comment
June Agenda
 
Welcome and Approval of Minutes
Paul McKenna called the meeting to order.
 
David Hartwig moved to approve the April 11, 2006 meeting minutes.
Diane Lovell seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
Customer Service Team Update
Bobbie Barott provided a report on the status of member appeals and the calls received by category and tracked through the automatic call distribution system. PEBB receives an average of 20-30 appeals per week. At the Subcommittee’s request, she will provide monthly comparisons of tracked calls and the number of appeals at future meetings.
 
She referred to Ops attach.2 (doc) and explained that PEBB lacks consistent administration of eligibility determination for over age dependent children aged 19 to 24 years. Notification to members and benefit termination or benefit continuation does not adhere to Oregon Administrative Rules (OARs). Carriers currently differ in how they administer the over age dependent eligibility, and some carriers do not send notification letters. The carriers believe that the notification should be the responsibility of PEBB, and PEBB staff believes this can be done with the pebb.benefits system in place. The OAR puts the responsibility on the member to notify PEBB regarding eligibility for dependents. As a solution, PEBB will administer the over age dependent eligibility and will be responsible for member notification and the termination of dependent benefits as necessary. Members will be responsible to provide notification to PEBB when dependents no longer qualify for benefits.
 
Until the changes can be implemented in the pebb.benefits system PEBB believes that placing the responsibility with the member is the best solution. Within the next month and for those dependents over the age of 24, PEBB would like to send out a letter explaining that their benefits would be terminated. Later, the notification would go to those who are within 90 days of the dependent birth date. Birth dates are in the pebb.benefits system. Those aged 19-23 will not be terminated without notification, but those aged 24 would be terminated at the end of the month. This process will be clarified when the final desk procedure is written. The letter notification will be initiated and continue until a certification question is implemented in the pebb.benefits system during a future open enrollment.
 
Policy Option Packages
Lydia Lissman provided an update on PEBB’s Administrative Policy Option Packages (POPs) and explained that estimated dollar figures, where available, have been added since the last meeting. Based on discussion at the April Board meeting, an additional amount has been added to the PEBB Vision POP.
 
She explained that PEBB will be required to provide an actuarial valuation of Other Post Employment Benefits (OPEB) as required by the Government Accounting and Standard Board (GASB). She will provide an explanation of GASB, a breakdown of positions and medical consultant dollar amounts in the PEBB Vision POP, and the approximate funding at the May Board meeting.
 
2007 Agency Administrative Assessment
Susan Pritt recommended that the PEBB Administrative Fee be in increased to 0.6 percent for 2007 (Ops attach.3  doc). This recommendation is made early in the renewal and 2007-2009 budget building processes, and estimates of 2007 premiums and next biennium’s expenditure need may change significantly as these processes move forward. She also recommended that the Retiree Administrative Fee be increased to 1.1 percent, and that the Administrative Fee for COBRA be increased to 2.6 percent.
 
Diane Lovell moved to accept the staff recommendation to increase the PEBB Administrative Fee to 0.6 percent, to increase the Retiree Administrative Fee to 1.1 percent, and to increase the COBRA Administrative Fee to 2.6 percent.
David Hartwig seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
Susan Pritt made the recommendation to continue the consultant’s commission rate of 0.16 percent of medical, dental, and routine vision premiums for 2007 (Ops attach.4  doc).
 
Diane Lovell moved to accept the staff recommendation to continue the consultant’s commission rate of 0.16 percent of medical, dental, and routine vision premiums for 2007.
David Hartwig seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
Contract Recommendations
Lydia Lissman explained the rationale behind PEBB’s recommendations to renew contracts with Aon Consulting, BenefitHelp Solutions, and Unum. At the Subcommittee’s request, PEBB will add language to the rationale for approving Aon’s renewal that explains how they have been the lead on the Vision elements in the RFP. Aon’s experience assists them in carrying out PEBB’s Vision, and this is PEBB’s expectation.
 
Diane Lovell moved to accept the staff recommendation to offer a two year contract renewal to Aon Consulting, Inc.
David Hartwig seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
David Hartwig moved to accept the staff recommendation to offer a one-year contract renewal to BenefitHelp Solutions.
Diane Lovell seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
David Hartwig moved to accept the staff recommendation to offer a one-year contract renewal to Unum for the member optional long-term care insurance benefit.
Diane Lovell seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
Advisory Group Report
Isabel Joslen reported that the Agency Advisory Group met last week. Agencies complimented PEBB on their communication and provided valuable feedback on Open Enrollment forms, pebb.benefits, and the processes for COBRA and FSAs.
 
Testing is now in process for a single entry point for pebb.benefits, whereby agencies can get into the system and make and save all updates at one time. Implementation is scheduled for June 1.
 
PEBB is gathering all input received via email or telephone from members during the 2005 Open Enrollment. The information will be used to make improvements to pebb.benefits. A focus group will be formed composed of those members who provided the input, aimed at making improvements in time for the next Open Enrollment period.
 
Rural Address Issue
Isabel Joslen explained that Regence is the only PEBB medical plan available in some Oregon counties (Ops attach.5  doc). The Board has identified 20 Oregon counties where they consider there to be an insufficient number of preferred primary care providers within the PPO network to serve members in these counties. The Board determined that “employees who live in these counties” and who enroll in the PPO plan will receive the same level of benefit when they use non-preferred providers as they would using preferred providers. PEBB members may reside in another state and work in Oregon. PEBB has learned that members living in states bordering the Oregon counties identified by the Board are receiving the same level of benefit when they use a non-preferred provider as when they use a Regence preferred provider. Technically, these members are not eligible for this consideration.
 
Diane Lovell moved to approve the staff recommendation to extend benefit coverage to members residing in specific out-of-state zip codes.
David Hartwig seconded the motion.
Hearing no further discussion, the motion passed unanimously.
 
Public Comment
None.
 
June Agenda
Lydia Lissman provided an overview of the June agenda items. She explained that staff will provide information on FSAs at the July meeting as PEBB is in budget preparations.
 
Meeting Adjourned