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Public Employees' Benefit Board Meeting Minutes
May 19, 2009
Public Employees’ Benefit Board
Tues., May 19, 2009, 10:30 a.m. to 4:10 p.m.
DAS General Services Building
1225 Ferry St SE, Salem, OR
                                           
Minutes
Approved June 16, 2009
NOTE:  Time codes for the video stream (x:xx:xx) are provided at the beginning of each section.
              Please refer to the recorded video stream of this meeting for additional details.
 

Watch the recorded video stream of this meeting.
Board Members Present
Sue Nelson, Chair
Rich Peppers, Vice-Chair
Peter Callero
Rocky King
Diane Lovell
Bret West
Paul McKenna
Jeanene Smith
Rep Tina Kotek
PEBB Staff Present
Wendy Edwards
Lydia Lissman
Joan Kapowich
Bobbie Barott
Ingrid Norberg
Larie Nicholas
Margaret Smith-Isa
Chelsea Hollingsworth
Guests Present
Steve Schmick, Kaiser
Diana McMillan-Skutack, BHS
Diana Jones, Regence
Tricia Vakknen, Regence
Renee McDonald, Regence
David O’Guinn, ODA
Denise Yunker, OUS
Megan Myrick, Willamette Dental
Brad Garrigues, Providence
Sally Hill, Providence
Kristina Herron, Providence
Jennifer Aberg, VSP
Don Wiggins, Standard
Cynthia Platanov, ODS
Rob Sumner, Regence
Bart McMullan, Regence
Donna Chastain, OSU
Marcia Kelley, AAUW
Mylia Christensen, OHSU
Consultants Present
Mikel Gray, Mercer
Carrie Johnson, Mercer
Hans Leitzinger, Mercer (via phone bridge)
Agenda
Welcome/Approval of Minutes: April 21, 2009
Administrator Updates/Agenda Review
Standard Life Insurance Renewal
Approval of Final 2010 Plan Design and Renewal Rates
Providence Update/Status of Implementation Plan
Rep Tina Kotek HB 2009 Presentation
Operations Reports
Finalization of PEBB Temporary Rules
Evidence-based Plan Design
Public Comment
 
 
 
 
 
0:26 
0:31 
 
 
Welcome and Approval of Minutes (info/action: Bdattach.1)
Upon opening the meeting, Chair Nelson called for a motion to approve the Board’s April 21, 2009 Minutes. Rich Peppers moved to approve the minutes and Paul McKenna seconded his motion.
 
Action: The Board unanimously approved its April 21, 2009 minutes.
 
Administrator Updates
The Board heard brief updates from Administrator Joan Kapowich regarding  health reform bills moving along through the Legislature, including HB 2009 and SB 856. Ways and Means has included a budget note regarding the potential merging of OEBB and PEBB in the 2011 cycle. Public Health warns that there could be an upswing in H1N1 (swine influenza), so PEBB is preparing a special newsletter on the topic.
 
3:18Standard Life Insurance Renewal (info/discussion/actionBdattach.2)
 
Wendy Edwards, with Mercer consultant Carrie Johnson, outlined the 2010 renewal proposal for Standard Insurance. Employee furloughs would not impact what PEBB does. Furloughs are predicated on payroll, so there will be an impact on disability benefits. Vice Chair Peppers moved to accept Standard’s proposed renewal through December 31, 2011. Peter Callero seconded the motion.
 
Action: The Board unanimously approved Standard’s Renewal.
 
9:00 
 
 
 
Approval of Final 2010 Plan Design (info/discussion/action: Bdattach.3)
 
Wendy Edwards, with Mercer consultants Mikel Gray and Carrie Johnson summarized the final plan designs, premium rates and administrative services rates for all 2010 members benefits to be incorporated into the Summary Plan Document.
 
Rich Peppers moved to accept Kaiser’s 9.3% increase in rates and fees. Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Bret West moved to accept Providence’s rates and fees as proposed to renew Providence Choice for 2010. Diane Lovell seconded the motion.
 
Action: The Board unanimously approved acceptance of Providence’s 1.8% premium increase for 2010.
 
Peter Callero moved to accept Providence’s premium equivalent rates for the statewide self-insured plan in 2010. Bret West seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Diane Lovell moved to accept Providence’s fees for the statewide self-insured plan in 2010 and 2011. Bret West seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Paul McKenna moved to accept ODS’ 2.5% increase in ASO fees. Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Diane Lovell moved to accept the 4.1% increase in ODS premium equivalents.  Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Rich Peppers moved to accept Kaiser’s 3.54% increase in dental plan premiums for 2010.  Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Bret West moved to accept Willamette’s 0.54% increase in dental plan premiums for 2010. Peter Callero seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Bret West moved to accept VSP’s ASO fee of $1.76 PEPM and self-funding 4.1% decrease in 2010 premiums. Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Rich Peppers moved to accept Standard’s renewal rates through December 31, 2011. Bret West seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Peter Callero moved to accept BHS’ renewal fees. Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Paul McKenna moved to accept ASI Flex’s rate withhold. Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Bret West moved to accept UNUM’s renewal for 2010. Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Peter Callero moved to accept Cascade Center’s renewal for the two year period. Bret West seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Diane Lovell moved to continue with the current opt out policy for 2010. Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Rich Peppers moved to continue with the current rural subsidy policy in 2010.  Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
 
Diane Lovell moved to continue with the current tier structure in 2010. Peter Callero seconded the motion.
 
Action: The Board unanimously approved the motion.
 
 
27:50Providence Update/Status of Implementation Plan (info/discussion: Bdattach.4)
 
Wendy Edwards and Mikel Gray outlined the progress on implementation of the statewide self-insurance with ASO Providence Health Plans. Communications is working on a provider network portal page. A joint message from PEBB/Providence will be released each Friday. Mercer will bring back more information regarding the out of network situation. Other direct contracting opportunities will be researched by staff and options brought back to the Board.
 
52:54Representative Tina Kotek HB 2009 Presentation
 
Rep Kotek asked PEBB for $500,000 from the stabilization fund for the purpose of supporting health reform efforts as detailed in HB 2009-B. The Board will convene to make a decision on the expenditure within the next two weeks, based on additional information to be provided by Rep Kotek.
1:10:57 
 
 
 
 
 
 
 
 
 
 
 
 
Operations Reports [info/discussion: Bdattach.5, 5a and 5b) (Bdattach.5a is proprietary and was distributed to Board members only.)]
 
Wendy Edwards provided a summary of Operations activity, including plan design, worksite screenings, and weight watchers. Ingrid Norberg outlined the principal topics received through Pebb.connect. Margaret Smith-Isa presented an overview and funding request for the 2009 Behavioral Risk Factor Surveillance System (BRFSS) survey.
 
Rich Peppers moved to allocate $45,000 of the 07-09 Evidence-based Plan Design funds to support survey fielding and data analysis. Diane Lovell seconded the motion.
 
Action: The Board unanimously approved the motion.
1:54:20 
 
 
 
 
 
Finalization of PEBB Temporary Rules (info/discussion/action: Bdattach.6)
 
Bobbie Barott provided a summary of five temporary Administrative Rules that need to be moved to permanent status within the timelines.
 
Peter Callero moved to approve publication of the proposed permanent rules to become effective August 1, 2009. Jeanene Smith seconded the motion.
 
Action: The Board unanimously approved the motion.  
1:59:06Evidence-based Plan Design (info/discussion/actionBdattach.7)
 
Margaret Smith-Isa presented an overview of PEBB’s evidence-based design efforts to date and options for further pursuing the use of evidence.
 
Diane Lovell moved to arrange for analysis of PEBB data. Indentify target areas, including prevention and cost avoidance and services that PEBB should no longer cover based on evidence. Use the Health Resources Commission (HRC) and Center for Evidence Based Policy (CEBP) to make Evidence-Based Plan Design recommendations based on analysis. Rocky King seconded the motion. The motion was subsequently withdrawn.
 
Diane Lovell moved to commit up to $50,000 of PEBB funds to contract with an appropriate entity for analysis modeling PEBB claims using the Essential Benefits Package. Rich Peppers seconded the motion.
 
Action: The Board unanimously approved the motion. 
 
 
2:50:00 
 
 
 
 
2:57:00 
 
 
 
3:03:13 
 
 
 
 
 
3:.07:18
Public Comment 
 
Bart McMullan, Regence
Bart McMullan presented comment in protest of the Board’s decision to award a contract for administration of a state-wide self funded PPO to Providence Health Plans.
 
 
David O’Guinn, ODA
David O’Guinn presented comment in support of the Regence protest. Mr. O’Guinn believes PEBB is taking steps to reduce the quality of care and to economically direct patients down paths that result in inferior care.  
 
Marcia Kelley, AAUW
Marcia Kelley presented comments expressing concerns about Providence not covering services for 1) abortion 2) vasectomy 3) tubal ligation and 4) assisted suicide. The 2,000 AAUW Oregon members believe theology related to reproductive rights prohibit Providence Health Plans from effectively administering a self insured plan.
 
Denise Yunker, OUS
Denise Yunker presented comments expressing concerns about the selection of Providence Health Plans as the administrator of PEBB’s self insured plan. 
3:13:13Adjourn