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April 19, 2011
DAS General Services Building
1225 Ferry St SE, Ste B, Salem
 
PEBB Public Meeting Minutes
Tues., April 19, 2011; 10:30-4:30 p.m.
APPROVED – 5/5/2011
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. Items may be heard out of agenda order.
 
Click here to download the pre-break meeting video.
Click here to listen to the post-break meeting audio.
Click here to download the meeting agenda and handouts.
 
PEBB Board Members
Rich Peppers, Chair
Peter Callero
Rocky King, Vice Chair
Nora Leibowitz
Diane Lovell
 
Paul McKenna
Fariborz Pakseresht
Sen. Betsy Johnson
Jeanene Smith
 
PEBB Staff
Bobbie Barott
Wendy Edwards
Joan Kapowich
 
Ingrid Norberg
Chérie Taylor
 
Guests
Jeff Akers, Kaiser
Donna Chastain, OSU
Yuen Chin, Willamette Dental
Thandi Clements, VSP
Sandi Durham, PEBB member
Gordon Hoberg, ODS
Zue Matchett, PERS
Cynthia Platonov, ODS
 
David Scearce, The Standard
Cash Singleton, Providence
Matt Spencer, Ceridian
John Thoma, BHS
Dana Tierney, Regence
Deborah Tremblay, OJD
Denise Yunker, OUS
Andrea Zottola, Providence
 
Consultants
Mikel Gray, Mercer
 
Kari Johnson, Mercer
 
Agenda
PRE-BREAK VIDEO STREAM: 00:00:00/01:25:32
1.
Welcome and Approval of Minutes (info/action: Bdattachs.1/1A)
Chair Peppers welcomed members and attendees, calling for a motion to approve the Board’s March 15th and 23rd meeting minutes.
 
ACTION: Fariborz Pakseresht moved to approve the minutes. Diane Lovell carried the motion, which passed unanimously.
 
 
00:01
 
 
 
00:58
 
Overview of Meeting and Updates (info/discussion: Bdattach.2)
Administrator Joan Kapowich provided an overview of the meeting agenda and updated the Board on topical activities.
 
 
03:13
2.
Operations Subcommittee Report (info/discussion)
 Sub Chair McKenna reported on a member appeal decided upon at the Subcommittee’s April 19th meeting.
 
 
16:48
3.
Legislative Update (info/discussion)
Kathy Loretz, Deputy Administrator, debriefed the Board current legislative activities affecting PEBB.
 
 
18:34
4.
FSA (info/action: Bdattach.3)
Wendy Edwards, Director of Operations, updated the Board on status of PEBB’s dependent care and healthcare flexible spending accounts.
 
ACTION: Paul McKenna moved to accept staff’s recommendation to transfer $250,000 from the Stabilization Fund to cover the cost of the FSA program for plan year 2011. Diane Lovell carried the motion, which the Board passed unanimously.
 
 
23:14
 
 
 
 
 
34:19
5.
Administration Fee (info/action: Bdattach.4)
Kathy Loretz, Deputy Administrator, presented a detailed 2011 timeline to the Board.
 
ACTION: Diane Lovell moved to PEBB’s administrative assessment at 0.4%. Paul McKenna carried the motion, which passed unanimously.
 
 
34:40
 
 
 
40:24
6.
Health Engagement Model (HEM) (info/discussion: Bdattach.5)
Joan Kapowich, Administrator, updated the Board on HEM and requested Board feedback on coverage, plan design and development.
 
ACTION: The Board formed a HEM subcommittee to further develop the HEM framework. The subcommittee members are Chair Peppers, and Board members Leibowitz, Lovell and Smith. Its first meeting is scheduled for Mon., April 25, 2011.
 
 
40:52
 
 
01:21:01
7.
Market Trend (info/discussion)
Mikel Gray, Mercer, will discuss market trend with the Board.
 
NOTE: This agenda item will be heard at a future Board meeting.
 
 
 
 
01:25:15
 
Public Comment
No public comment was submitted.
 
 
01:25:20
POST-BREAK AUDIO STREAM: 00:00:00/04:50:14
8.
Money Flow/Projection Process/Plan Design Options
(info/discussion: Bdattachs.6/6A/6B)
Administrator Kapowich, Operations Director Edwards and Mikel Gray, Mercer, discussed PEBB’s composite rate, plan design change considerations and premium dollars flow with the Board.
 
ACTIONPeter Callero moved to approve staff’s recommended development of PEBB’s actual composite rate, which was carried by Fariborz Pakseresht. The Board unanimously passed the motion.
 
 
 
02:10
 
 
 
 
 
22:55
9.
Round Three Renewal Response (info/action: Bdattachs.7/7A)
Kari Johnson and Mikel Gray, Mercer, presented PEBB vendors’ Round Three renewal responses to the Board.
 
DENTAL, VISION AND OPTIONAL BENEFITS RENEWALS:
 
ACTION: Rocky King moved to accept an 0.2% increase in ODS dental rates, which was carried by Diane Lovell. The motion passed unanimously.
 
ACTION: Rocky King moved to accept a 3.1% increase in Kaiser dental rates and its Preventamax benefit (additional requests from Kaiser to accept a $10 accounting fee and a hospital visit-by-dentist fee to be addressed next). Paul McKenna seconded; however, Mr. King withdrew his motion.
 
ACTION: Fariborz Pakseresht moved to renegotiate Kaiser and Willamette Dental renewals to 0%, or best they can do, with no member cost-sharing. Peter Callero carried the motion, which passed unanimously.
 
ACTION: Rocky King moved to accept The Standard’s renewal rate, including implementation of tobacco and non-tobacco rates, effective Jan. 1, 2013, giving PEBB a time window with which to communicate the change to members. Peter Callero carried the motion, which passed unanimously.
 
 
ACTION: Diane Lovell moved to accept BHS’s renewal quote, including elimination of grace period for retirees and self-pay members, which was carried by Vice Chair King. The Board passed the motion unanimously.
 
ACTION: Peter Callero moved to accept a renewal for ASIFlex that includes a requirement that state agencies pay the monthly administrative fee for their enrolled members. Vice Chair King seconded and the Board passed the motion unanimously.
 
Meeting resumes after brief break …
 
MEDICAL BENEFITS RENEWALS:
 
ACTION: Diane Lovell moved to accept staff recommendation of approving Kaiser HMO for 2012, pending additional plan design changes by the Board which was carried by Peter Callero. However, Ms. Lovell withdrew her motion.
 
CONSENSUS: The Board directed staff to return medical renewal quotes to vendors and renegotiate rates to 0%, or best efforts.
 
 
01:44:45
 
 
 
 
 
02:11:30
 
 
 
 
 
02:19:48
 
 
 
 
02:29:59
 
 
 
 
 
02:34:40
 
 
 
 
 
02:35:07
 
 
 
 
02:36:15
 
02:45:09
 
 
 
 
 
 
03:56:30
 
03:57:09
 
Item 8. Money Flow/Projection Process/Plan Design Options (continuation of Board’s “sweet spot” conversation):
(info/discussion: Bdattachs.6/6A/6B)
Administrator Kapowich, Operations Director Edwards and Mikel Gray, Mercer, discussed PEBB’s composite rate, plan design change considerations and premium dollars flow with the Board.
 
ACTION: Paul McKenna moved to accept the following from Scenario A:
 
  • Adjust (decrease) annual out-of-pocket maximum to $1,500
  • Adjust (increase) monthly spousal surcharge to $50
  • Implement  monthly $25 tobacco surcharge
 
Nora Leibowitz carried the motion, which failed to pass by a 4-3 vote.
 
Diane Lovell moved to accept the following Scenario A plan design changes :
 
  • Adjust (decrease) annual out-of-pocket maximum to $1,500
  • Adjust (increase) monthly spousal surcharge to $50
  • Implement monthly $25 tobacco surcharge
  • Adjust (decrease) chronic care coinsurance
  • Implement annual $50 Rx deductible (value drugs exempted)
 
Peter Callero seconded the motion, which passed unanimously.
 
ACTION: Paul McKenna moved to remove retirees from plan design change options and adding them back in 2014 when insurance exchange commences. The motion, carried by Peter Callero, was withdrawn.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
04:02:53
 
 
 
 
 
 
 
 
 
 
 
04:19:15
 
 
 
04:34:31
10.
Brainstorm Ideas (info/discussion)
Joan Kapowich, Administrator, will lead the Board on a brainstorming session for ideas on further healthcare cost savings.
 
NOTE: This agenda item will be heard at a future Board meeting.
 
 
 
 
 
04:47:24
 
Adjourn
04:50:09