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PEBB Operations Subcommittee Minutes, August 8, 2006
Public Employees’ Benefit Board
Operations Subcommittee
Tuesday, August 8, 2006, 9:30 to 11:30 a.m. - Minutes
Board Room, PEBB
775 Court St NE, Salem OR
Approved 09/12/2006

Subcommittee Members Present
Paul McKenna, Chair
Diane Lovell
PEBB Staff Present
Bobbie Barott
Sandy Johnson
Isabel Joslen
Lydia Lissman
Rick Schoonover
Scott Smyth
Jean Thorne
Guests Present
Gordon Hoberg, ODS
Paul Pfinster, AFLAC
Sara Rengler, Willamette Dental
Diane  Skutack, BenefitHelp Solutions
Kim Waldroff, BenefitHelp Solutions
Kim Whitley, Samaritan Health Systems
Call to Order and Approval of Minutes: June 13, 2006
Customer Service Team Update
Budget Update
Advisory Group Report
Status of Contracts
2006 Open Enrollment Overview
Public Comment
September Agenda
Call to Order and Approval of Minutes
Paul McKenna called the meeting to order. The minutes from the June 13, 2006 meeting were approved.
Customer Service Team Update
Status of Appeals
Bobbie Barott provided an update on the activity of the Customer Service Team.  During July, PEBB received 114 appeals. 151 appeals were closed during July.  At month end,  58 appeals were open with 7 being in process longer than 45 days.  This is down from March, when 246 appeals were open, and 90 were in process for greater than 45 days.
PEBB Administrative Rules
Lydia Lissman alerted the Subcommittee to a situation involving some retirees in which policy was being interpreted outside what is allowed under the administrative rules. This was occurring outside the Board-approved policy. Affected retirees will be notified of the steps they will need to take to correct the situation.
Bobbie Barott reviewed proposed administrative rule changes relating to enrollment and processing errors and late enrollment of newborns (Ops attach.2 doc).  The change in enrollment rules will streamline the language and change the timelines during which members may correct errors.  Under the proposed rules, employees would have 90 days to correct errors beyond the eligibility or QSC date, rather than 120 days.  Members would have 30 days from receipt of the first paycheck of the new plan year or benefit summary to correct errors, rather than 60 days from the first of the new plan year.  Reducing the time allowed for corrections of member omissions and errors and agency processing errors will ensure member benefits are correct, member payroll deductions are accurate, and premiums are correct.
Diane Lovell recommended that the proposed rule language be changed to clarify that members have 30 days from receipt of the later of either the first paycheck or the benefit summary to correct errors.  It was noted that a benefit summary will be sent only to members who are not active employees.
Bobbie Barott reviewed the proposed rule change on late enrollment of newborns (Ops attach.3 doc).  Retroactive enrollment of newborns can occur up to 12 months after the birth of the child. The current rules allow agencies to make the correction during the first 60 days, requiring members to submit an appeal to PEBB if it goes beyond that.  The proposed rule will allow agencies to make the change up to 12 months.
Diane Lovell moved approving the new rules as discussedPaul McKenna seconded.  The motion passed with no further discussion.
Budget Update
Lydia Lissman introduced Scott Smyth, the new PEBB fiscal coordinator. She noted that the PEBB budget for 05-07 appears to be balanced.  Scott has been working with Aon on the 2007 rates.  PEBB will provide information to the subcommittee in September on what is included in the DAS 2007-09 Agency Request budget for PEBB.
Advisory Group Report
Isabel Joslen provided an overview of the recent work of the Agency Advisory Committee.  The Committee has been meeting monthly, although the intent is for them to begin meeting quarterly.  Two major sets of changes have been made to pebb.benefits as a result of their input.  Another 50 individual changes are scheduled to be made before the end of the year.  A focus group of members will test out the new changes in the pebb.benefits member module prior to Open Enrollment.  The main areas of concern with members related to the registration process. The changes are designed to make it easier for members to enroll.
Status of Contracts
Rick Schoonover distributed a listing of the current PEBB contracts (Ops attach.4 doc).  There are about 125 contracts.  The majority are interagency agreements related to the Employee Assistance Program, semi-independent agencies and self-pay groups.  The balance are primarily carrier contracts.  He also noted that the contract with Saber Consulting had formerly been executed by the DAS Information Resources Management Division.  This contract has now been transferred to PEBB.  The contract is due to expire at the end of August, but the contract language allows it to be extended for up to four 1-year periods.  PEBB is proposing to extend it for one year, increase the amount of the contract to cover the year’s expenses and make other changes related to the contractor’s name and key person.
Diane Lovell moved to recommend approval of the contract amendments to the Board.  Paul McKenna seconded.  Hearing no further discussion, the motion passed unanimously.
2006 Open Enrollment
Lydia Lissman provided an overview of the upcoming Open Enrollment process.  This will not be a mandatory Open Enrollment, given that there are no plan or plan design changes with the exception of the addition of a part-time/retiree plan from Providence Choice.  Significant changes are being made to the member handbook based on the feedback from the Agency Advisory Committee.  There will now be one handbook that will include perforated forms. The number of hard copy handbooks will be limited to those ordered by the agencies.  Members will be encouraged to review the handbook on-line, visit the plans’ PEBB-specific websites and enroll online.  PEBB will solicit additional feedback after the Open Enrollment period to assist in making further refinements next year.  Members will be notified and reminded of Open Enrollment through statewide e-mails, the PEBB newsletter and agency communications.
Public Comment
There were no public comments.
July Agenda
The September agenda will include an update on the agency request budget for 2007-09, as well as the report from Aon about the possible inclusion of coverage for overage dependents with mental illness.
Meeting Adjourned