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Public Employees' Benefit Board Meeting Minutes
July 21, 2009
Public Employees’ Benefit Board
Tues., July 21, 2009; 11:00 a.m. to 3:45 p.m.
DAS General Services Building
1225 Ferry St, SE, Salem, OR
Approved 09/15/2009
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.
Board Members Present
Suzanne Hoffman, Chair
Rich Peppers, Vice-Chair
Peter Callero
Rocky King
Diane Lovell
Paul McKenna
Jeanene Smith
PEBB Staff Present
Bobbie Barott
Wendy Edwards
Chelsea Hollingsworth
Joan Kapowich
Ingrid Norberg
Chérie Taylor
Guests Present
Jack Costello, Providence
Valerie Honeycutt, VSP
Sally Hill, Providence
Helen Noonan-Harnsberger, Providence
Sean Jones, Kaiser
Stacy Landes, Kaiser
Jason Lincoln, Providence
Renee McDonald, Regence
David O’Guinn, State of Oregon
Paul Pfnister, AFLAC
Cynthia Platanov, ODS
Jean Poling, Kaiser
Sara Rengler, Willamette Dental
David Robertson, Providence
David Scearce, The Standard
Dan Stevens, Providence
Tricia Vakknen, Regence
Denise Yunker, OUS
Consultants Present
Mikel Gray, Mercer
Welcome and Approval of Minutes
Administrator Updates and Agenda Review
Biologicals/Specialty Pharmacy Drugs
Self-Insurance Implementation Plan Status
Operations Report
Essential Benefit Package
Partners for Quality Care
Public Comment
(Morning Session)
Welcome/Approval of Minutes (info/discussion/action: Bdattach.1and .2)
Vice Chair Peppers called for a motion to approve the Board’s June 1 and June 16, 2009 Minutes. Paul McKenna moved to approve the minutes and Peter Callero seconded his motion.
Action: The motion was passed unanimously to approve the Board’s June 1, and June 16, 2009 meeting minutes.
Administrator Updates and Agenda
Joan Kapowich reviewed today’s agenda and provided a brief update, including reminders that:
  • she had sent out PEBB’s two budget notes for Board review;
  • she will be attending meetings over the next few months to enable a smooth transition for PEBB’s move from DAS to DHS, following the enactment of HB 2009 and its creation of the Oregon Health Authority;
  • Staff vacations, furloughs, leaves are creating lean periods in staffing levels.
Biologicals/Specialty Pharmacy Drugs (info/discussion: Bdattach.3a, .3b, .3c)Providence, Regence and Kaiser plan representatives presented an overview of specialty pharmaceuticals, including definitions, followed with a discussion of management approaches, trends and challenges.
Self-Insurance Implementation Plan Status (info/discussion)
Vendor representatives Jack Costello (PBH), Dan Stevens, Sally Hill and Jason Lincoln updated the Board on the status of implementation planning for the Providence 2010 statewide self-insured PPO plan.
(Afternoon Session)
Operations Report(info/discussion/action: Bdattach.4, .5, .6, .7 and .8)
Wendy Edwards and Bobbie Barott presented information on amendments to Board bylaws and bylaws track changes (Bdattachs.7 and 7a, respectively); on a Board resolution (Bdattach.7b) which ratifies and approves:
  1. Delegations of Rulemaking Authority
  2. Adopted Temporary Rules as filed with the Secretary of State on Feb. 24, 2009, and;
  3. Chérie Taylor’s execution of the Rulemaking’s Statement of Need and Justification, also dated and filed on Feb. 24, 2009.
Ms. Edwards also reviewed:
  1. Internal operations status;
  2. A follow-up report on utilization of dental cleanings;
  3. Options for handling mandatory open enrollment compliance issues (Bdattach.6), and;
  4. A status overview of ongoing work to update PEBB administrative rules (Bdattach.8).
Diane Lovell moved to adopt amendments to the Board By-Laws and Jeanene Smith seconded her motion. The Board By-Laws amendments were approved unanimously.
Vice Chair Peppers moved to ratify and approve the Board’s OAR resolutions and Diane Lovell seconded his motion. The Board unanimously approved the motion.
Rocky King moved to approve staff’s filing of a rulemaking to update PEBB OARs, effective Oct. 1, 2009. An audience member requested to comment on the rulemaking; specifically, that she wanted the opportunity to comment on any changes to OAR 101-010-005. Staff assured that she would be given the opportunity to make comments, either in writing, or orally at the rulemaking hearing scheduled for Sept. 23, 2009. The Board voted unanimously to approve the rulemaking filing for an effective date of Oct. 1, 2009.
Ms. Edwards reviewed mandatory medical open enrollment option scenarios, including goals and objectives for each scenario. Ms. Barott reviewed applicable OARs. Rocky King moved to select Option 2 of Mandatory Open Enrollment for 2010 Benefits, Peter Callero seconded that motion. The Board voted unanimously to select Option 2.
Ms. Edwards reviewed an internal Operations Summary (Bdattach.4) and updated the Board on dental cleanings utilizations (Bdattach.5).
Essential Benefit Package (info/discussion: Bdattach.9)
James Matthisen, The Mosier Group, LLC, and Mikel Grey, Mercer consultant, provided the Board with background on the development of the Oregon Health Fund Board essential benefit package, including methodology and projected cost factors.
Partners for Quality Care (info/discussion: Bdattach.10and .11)Nancy Clarke, Executive Director, Oregon Health Care Quality Corp.,
presented sample consolidated quality measurement reports on the work of the Oregon Health Care Quality Corp. partnership (Bdattach.10) and an update on the provider quality initiative (Bdattach.11).
Public Comment
Marie Vituli, University of Oregon faculty, presented public comment on vendor availabilities of the 2010 statewide self-insured PPO plan (Providence).