Date: March 7, 2002
Location: 2500 Broadway, Helena, Montana
COMMITTEE MEMBERS PRESENT:
Don
Mathre - MSU-Bozeman
Maggie
Peterson - MT Tech-UM
D.J.
Whitaker - Helena COT-UM
Susan
Briggs - WMC-UM
Vicki Miller
- MSU COT-Billings
Norma
Tatarka - MSU-Bozeman retiree
Sue
Hill - OCHE
Tom
Schneider - MPEA
Michael
Brown - UM-Missoula
Terri
Gruba - UM-Missoula
Kathy
Haggart - MSU COT-Great Falls
Richard
Miller - Union Carpenters
Deborah
Peters - MSU-Billings
Verna
Bradgley - MSU-Bozeman/MPEA
COMMITTEE MEMBERS ABSENT:
Terry
Leishman - IUOE #400
Susie Wortman
- WDCL-MSLA
Susan
Alt - MSU-Bozeman
Michael
Franisconi - WMC-UM
Ken
Emerson - MSU-Bozeman retiree
Jim
Handley - MT Tech-UM
Don Herzog
- IBEW
Kathy
Crego - UM-Missoula
Kevin
Turner - AFSCME
Margaret
Meggs - MSU-Northern
OTHERS PRESENT:
Glen
Leavitt – OCHE
Richard Miltenburger - Blue Cross/Blue Shield
Rita Garland - UM-Missoula
Kris
Jones - Buck Consultants
Diana
Schramm - OCHE
Linda
Ryckman - OCHE
Quint
Nyman - MPEA
Arilis
Pfeffer - Helena COT-UM
Chris
Arterburn - MSU-Bozeman
Kirk
D. Keller - MSU-Bozeman
Michael
Kincaid - MGSLP
Mary
Taylor - MGSLP
Moria
Drew - UM-Missoula
Rich
Stafford - IBEW
Chairman Mike Brown called the meeting to order at 10:15a.m.
1. Call to Order
2. Introductions
3. Director’s Report – Glen Leavitt
Glen reported VIBA, the volunteer employee benefit association, will meet on March 8th to pick a vendor for the VIBA Program. Glen was involved in a meeting in which they had a little problem in the direct contracting and we will talk about that later in this meeting. Glen received more financial data since the last meeting, but did not redo the financial sheet because he did not have another full month in. He has some of the expenditure data and it is fairly well in line with what was predicted, maybe up just a little bit, and he sees no reason to change the projections from the last meeting.
4. Plan Changes and Premium Change Discussion
1) Montana Direct: Direct Contracting with Hospitals –There are several issues in the direct contracting with hospitals. BC/BS has problems administering Direct Contracting because of the Blue Card Program nationwide. This could be an issue with the Montana Direct Hospital Network. We agreed to extend discounts to out of state patients as we do in-state patients. Discounts for out-of-state cardholders cover 12 million in savings or $850,000 for the Montana University System. This could jeopardize the direct contracting with hospitals. Glen approved two different fee schedules, one if it works and one if it doesn’t. BC/BS feels that this problem may take some time to solve. Right now BC/BS is manually handling state claims and the process is very lengthy and taking too much time. BC is working on a new computer system to handle this problem.
2) Colonoscopy: Last year for 17 colonoscopies to be done would have cost the plan $15,000 had they been covered. The earliest age recommendation for a colonoscopy is fifty with one occurring every 10 years.
3) Ability to Waive Insurance: After doing research we have found out that the state does allow people to waive the insurance. You either take the whole package or you take nothing. The Plan will keep the state contribution. Employees can rejoin the plan at open enrollment or qualifying events.
4) Prescription Plan Change in maximum out-of-pocket to $700 ($1400 family): We have a recommendation from our sub-committee that we change the maximum out-of-pocket on prescriptions from $600 to $700 for individuals and from $1200 to $1400 for families.
5) Self-Funded CHO-HMO: It has been calculated that it will save the plan $600,000, but we will assume the risk also. We will be able to bring other HMO’s in that we have not had, which include BC/BS. Currently the State of Montana is not covered by the BC/BS HMO.
6) Changes in Deductibles from $350 to $400 and $500 to $575: Another plan change will be increasing the deductibles from $350 to $400 in the premium plan, and $500 to $575 in the basic plan. We have communicated this to employees as an inflationary adjustment. This will save the plan about $300,000.
7) FY 2003 Premium Rates: After going over handouts, Glen recommends going with the premium increases on page 1 of the handouts. This would include direct contracting. If page three of the handouts were to be implemented, there would be a $20 increase.
BREAK
5. Motions
Motion: The motion was made and seconded to not change the plan policy regarding covering colonoscopies.Action: The motion carried; one no vote.
Motion: The motion was made and seconded to allow employees the option to waive the insurance on an all or nothing basis, as long as the state contribution is received by the plan.Action: The motion carried.
Motion: The motion was made and seconded to increase the prescription drug deductible from $600 to $700 and the family deductible from $1200 to $1400.Action: The motion carried; one no vote.
Motion: The motion was made and seconded to self-fund the HMO.Action: The motion carried.
Motion: The motion was made and seconded to adopt and contract with Montana Direct for hospitals provided that the BC/BS issues can be worked out.Action: The motion carried.
Motion: The motion was made and seconded that we go to a three-tier system on the Direct Montana Hospital Contract proposal that would be 80% (networked), 75% (all others/out of town) & 65% (out of network in those towns). Physician reimbursement would remain at 75%.Action: The motion carried.
Motion: The motion was made and seconded that the plan be administered on maximum out of pocket, as opposed to a percentage covered, charge.Action: The motion carried.
Motion: The motion was made and seconded to change deductibles from $350 to $400 on the premium plan and from $500 to $575 on the basic plan.Action: The motion carried.
Motion: The motion was made and seconded that assuming Direct Montana Contract goes through, we adopt page 1 of the proposed rate ranges and if the said contract fails we adopt page 3.Action: The motion carried.
Motion: The motion was made and seconded that we put as much pressure as possible on BC/BS to cooperate with us for a benefit that they are not currently able to provide.Action: The motion carried.
Motion: The motion was made and seconded that we drop the top two plans for Long Term Disability if we can get a material rate reduction (from their proposed increase) on the lower plan from the provider, if unable to get a satisfactory reduction then we will stay with the three plans as currently in place and then we will go out to bid.Action: The motion carried, two opposed.
6. Other Business
The next workshop is scheduled for Thursday and Friday, October 3 and 4, and the place will be determined later.
The motion was made and seconded to adjourn the meeting.