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Public Employees' Benefit Board Meeting Minutes
June 16, 2009
Public Employees’ Benefit Board
Tues., June 16, 2009; 11:00 a.m. to 3:00 p.m.
DAS General Services Building
1225 Ferry St, SE, Salem, OR
                                           
Minutes
Approved 7/21/09
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.
 
 

Board Members Present
Suzanne Nelson, Chair
Rich Peppers, Vice-Chair
Peter Callero
Rocky King
 
Diane Lovell
Paul McKenna
Jeanene Smith
Bret West
PEBB Staff Present
Bobbie Barott
Wendy Edwards
Chelsea Hollingsworth
Joan Kapowich
 
Lydia Lissman
Margaret Smith-Isa
Chérie Taylor
Guests Present
Thandi Clements, VSP
Sally Hill, Providence
Jason Lincoln, Providence
Renee McDonald, Regence
David O’Guinn, State of Oregon
Cynthia Platanov, ODS
Jean Poling, Kaiser
 
Sara Rengler, Willamette Dental
David Scearce, The Standard
Diane Skutack, BenefitHelp Solutions
Rob Sumner, Regence
Deborah Trembley, DOJ
Tricia Vakknen, Regence
Denise Yunker, OUS
 
Consultants Present
Mikel Gray, Mercer
Hans Leitzinger, Mercer
Agenda
Welcome and Call to Order
Administrator’s Update and Agenda Review
PEBB 2009-11 Budget Note
Public Comment
Operations Report
Options for Fund Commitment to the Oregon Health Authority
2008 Utilization of Dental Cleanings
Administrative and Premium Rate Changes
2010 ASO Implementation Plan Update
PEBB PPO Experience 2009 Quarter 1
18-Month Review of PEBB Efforts
 
 
 
 
 
 
0:45
 
Welcome/Call to Order (info/actionBdattach.1; info/discussion: Bdattachs.2 and 3)
 
Chair Nelson called for a motion to approve the Board’s May 19, 2009 Minutes. Bret West moved to approve the minutes and Peter Callero seconded his motion.
 
Action: The motion was passed unanimously to approve the Board’s May 19, 2009 meeting minutes. 
0:53Administrator’s Update and Agenda Review (info/discussion: Bdattachs. 2 and 3)
 
Joan Kapowich reviewed today’s agenda and provided a brief update, including an overview of PEBB’s structure and HB 2009 C-Engrossed (Bdattachs. 2) and the Oregon Health Policy Board (Bdattach.3).
3:07PEBB 2009-11 Budget Note (info/discussion: Bdattach.4)
 
Joan Kapowich discussed the 2009-11 PEBB Budget note and work that will be necessary to fulfill this directive, consisting of two main components: 1) PEBB and OEBB report on potential cost benefit and efficiencies of merging, and 2) a report on  the cost benefit of self-insurance versus a traditional insurance funding model.
 
8:37Operations Report (info/discussion: Bdattach.5)
 
Wendy Edwards presented a review of PEBB Operations , including comparison data between 2008 and 2009 with regard to client services unit activities.
23:04 
 
 
 
 
 
 
 
 
 
40:14
Options for Fund Commitment to the Oregon Health Authority (info/discussion/actionBdattach.6)
 
Lydia Lissman reviewed staff recommendations for the $500,000 in Stabilization Funds the Board committed to Oregon Health Reform efforts at the June 1, 2009  meeting. The Board discussed the scope of HB 2009. Diane Lovell moved and Bret West seconded a motion to not designate parameters for the use of the $500,000 in stabilization funds provided to the Oregon Health Authority for implementation of HB 2009. 
 
Action: The motion passed by a vote of 5 to 2 in favor. 
41:222008 Utilization of Dental Cleanings (info/discussion: Bdattach.7)
 
Lydia Lissman reviewed the staff report on PEBB dental benefit coverage for cleanings. This report provided high-level data on member utilization of the benefit. The Board requested that staff follow up with vendors to see what kinds of outreach are done to inform members of the cleaning benefit.
50:32Public Comment
 
The Board heard public comment from David O’Guinn, a state employee and PEBB member, who offered comment the Providence preferred provider network.He also shared his experience with finding a specialist via referral. He expressed concern regarding the provision of information regarding transitional care.
1:01:20 
 
 
 
 
 
 
 
 
1:41:19
Administrative and Premium Rate Changes (info/discussion/actionBdattachs.8a and 8b)
 
Wendy Edwards and Hans Leitzinger, Mercer, presented premium and composite rates for Plan Year 2010, and explained changes resulting from HB 2116 C Engrossed, that includes an assessment to PEBB self-insured and fully-insured plans. Peter Callero moved to approve 2010 premium and composite rates for medical, dental and vision benefits. Bret West seconded the motion.
 
Action: The Board voted unanimously to approve PEBB’s 2010 premium and composite rates. Rocky King supported the motion with an objection to the mutualization of retiree and COBRA rates.
1:41:22Public Comment from Jean Poling, Kaiser (discussion)
 
Jean Poling, Kaiser, requested that the Board hear an out-of-order public comment regarding Bdattach.8a’s representation of Kaiser’s composite rate. Ms. Poling requested that Kaiser’s accountants verify the accuracy of the rate, after which she would report back to the Board. The Board granted the request.
1:44:16 
2010 ASO Implementation Plan Update (info/discussion)
 
Wendy Edwards and Sally Hill and Jason Lincoln, Providence, reported on the planning for the self-insured statewide PPO plan implementation.  PEBB is receiving biweekly updates from Providence staff on specific implementation issues. PEBB is also regularly meeting with Mercer to augment the process.
2:08:02PEBB PPO Experience 2009 Quarter 1 (info/discussion: Bdattach.9)
 
Wendy Edwards and Hans Leitzinger, Mercer, presented the first quarter medical experience dashboard that provided a look at utilization and cost trends for the PPO plan. Updates will be presented to the Board on a quarterly basis. The first three quarters of data will be reviewed to bring clarity and familiarity to PEBB PPO utilization. Fourth quarter data will enable the Board to look at cumulative impacts of benefit design on utilization and cost trends over the course of a full plan year.
2:41:2818-Month Review of PEBB Efforts (info/discussion)
 
Joan Kapowich reviewed challenges and accomplishments in achieving the Board Vision over the past 18 months.
 
Adjourn