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Board Meeting Minutes
June 23, 2010
DAS General Services Building
1225 Ferry St SE, Ste B, Salem
Public Meeting Minutes
Tues., June 23, 2010; 8:00 – 10:30 a.m.
APPROVED – 07/20/2010
NOTE:  Time codes for the video stream (xx:xx:xx) are provided at the beginning of each section.Please refer to the recorded video stream of this meeting for additional details. Topics may be heard out of agenda order.
Watch the recorded video stream of this meeting 
Board Members Present
Rich Peppers, Chair
Peter Callero
Rocky King
Rep. Tina Kotek (via telephone)
Diane Lovell
Paul McKenna
Fariborz Pakseresht
Jeanene Smith
Barney Speight
PEBB Staff Present
Bobbie Barott
Wendy Edwards
Chelsea Hollingsworth
Joan Kapowich
Kathy Loretz
Ingrid Norberg
Chérie Taylor
Guests Present
Cash Singleton-Davis, Providence
Shelia Jameson, Providence
Laurel Klaus, Regence
Gregg Loudermilk, AFLAC WWHQ
Diane Lund, The Lund Report
Paul Pfinister, AFLAC
Cynthia Platanov, ODS
Jean Poling, Kaiser
David Scearce, The Standard
Diane McMillan-Skutack, BHS
Marilyn Teleck, PEBB member/retiree
Dana Tierney, Regence
Deborah Tremblay, OJD
Don Wiggins, The Standard
Peter Wong, Statesman Journal
Denise Yunker, OUS
Consultants Present
Mikel Gray, Mercer (via telephone)
Welcome and Call to Order
Overview of Meeting and Updates
Stabilization Fund, RBC & Plan Design
Public Comment

[VIDEO STREAM: 00:00:00/02:30:04)]
Welcome and Call to Order (info)
Chair Peppers opened the meeting.
Overview of Meeting and Updates
Administrator Joan Kapowich reviewed the agenda, updating the Board on staff’s follow-up tasks from the Board’s June 16, 2010 meeting, as well as other topics of interest.
Stabilization Fund, RBC & Plan Design (info/actionBdattach.1)
Wendy Edwards, Director of Operations and Mikel Gray, Mercer, reviewed updated information for the Board, explaining changes arising from the application of new numbers entered to develop a composite rate, the effects of applying the collective bargaining agreement and plan design options.
Action: Barney Speight moved to:
  1. adopt changes to PEBB’s State-wide Plan benefits, including:
    • application of a $500 member co-payment (similar to OEBB’s recent action) for certain specialty shared services, including upper GI endoscopy, spine procedures for pain, hip or knee replacements and shoulder and knee arthroscopies;
    • introduction of a $250 In-Network/$500 Out-of-Network member Deductible, with four office visits not subject to Deductible, and;
    • increase member annual out-of-pocket maximums from $1,000 to $1,250.
  2. separate retirees from the PEBB active pool, and;
  3. discontinue PEBB’s $20,000 life insurance benefit, effective Jan. 1, 2011, transferring remaining Standard demutualization Fund monies into PEBB’s Stabilization Reserves.
Rocky King seconded the motion.
Diane Lovell moved to amend Mr. Speight’s motion, eliminating moved benefit changes and instead aggressively reviewing the options, including opportunity for public comment and make a decision to be incorporated into the upcoming RFP or implement earlier than 2012. Consistent with the collective bargaining agreement, Ms. Lovell would have the Board utilize current reserves as needed to pay claims and on a monthly basis, transferring funds from The Standard demutualization funds to maintain a low reserve balance in the stabilization reserve. Peter Callero seconded Ms. Lovell’s amended motion.
The amended motion, in a roll-called vote, failed to carry, with four Board members voting for, and four members voting against, the motion.
Because the amended motion failed for lack of a majority, Mr. Speight’s original motion was voted on in a roll-called vote. It, too, failed to carry for lack of a majority with the Board again evenly divided for and against the motion.
Rocky King moved to adopt the benefit changes contained in Mr. Speight’s motion. Barney Speight seconded the motion. After some discussion, Diane Lovell moved the motion, which Barney Speight also seconded. The motion to move the motion passed unanimously. Mr. King’s motion, on which the Board voted evenly for and against, failed to carry.
Written public comment was submitted by Marilyn Teleck, PEBB retiree.