Date: February 13, 2002
Location: 2500 Broadway, Helena, Montana
PRESENT:
Don
Mathre - MSU-Bozeman
Maggie
Peterson - MT Tech-UM
Susie
Wortman - WDCL-MSLA
Susan
Briggs - WMC-UM
Sue
Hill - OCHE
Verna
Badgley - MSU-Bozeman
Michael
Brown - UM-Missoula
Terri
Gruba - UM-Missoula
Michael
Franisconi - WMC-UM
Jim
Handley - MT Tech-UM
Vicki
Miller - MSU COT-Billings
Tom
Schneider - MPEA
Kevin
Turner - AFSCME
Kathy
Haggart - MSU COT-Great Falls
Kathy
Crego - UM-Missoula
Ken
Emerson - MSU-Bozeman retiree
Norma
Tatarka - MSU-Bozeman retiree
Margaret
Meggs - MSU-Northern
Susan
Alt - MSU-Bozeman
ABSENT:
Terry
Leishman - IUOE
D.J. Whitaker - Helena COT-UM
Deborah
Peters - MSU-Billings
Don Herzog - IBEW
Glen
Leavitt - OCHE
Lisa
Crow - MSU-Bozeman
Chris
Arterburn - MSU-Bozeman
Kirk
Keller - MSU-Bozeman
Jill
Young - UM-Missoula
Mary
Kay Puckett - Blue Cross/Blue Shield
Joan
Fabricius - Blue Cross/Blue Shield
Allison
Justman - UTU-Missoula
Kris
Jones - Buck Consultants
Rita
Garland - UM-Missoula
Diana
Schramm - OCHE
Linda
Ryckman - OCHE
JoLynn
Yerger - MSU-Billings
Quint
Nyman - MPEA
Earl
Hanson - Earl Hanson Consulting
Tina
Bright - Helena COT-UM
Dan
Creveling - Health Dynamics Inc.
Chairman Mike Brown called the meeting to order at 10:20a.m.
1. Call to Order
2. Introductions
3. Director’s Report - Glen Leavitt
Glen reported that VIBA, the volunteer employee benefit association, has formed a steering committee, but that the process has been slow. VIBA allows employees, including retirees, to pool unpaid sick leave and then use it for medical expenses. The defined contribution/defined benefit plan will schedule education workshops on the campuses this spring. Employees will have a year to decide which retirement plan they want to join. The State medical plan increased the out-of-pocket expense for their traditional plan to $16.00 for employee plus spouse; $12.00 for employee plus children; $18.00 for employee plus family, but had no increase for single employees. Glen reported that Ridgeway Pharmacy was now doing a better job on mail order prescriptions. The TSA(403b) sub-committee will be working on an RFP to be done by this summer.
4. Financial Report - Glen Leavitt
Based on Glen’s spreadsheet projection, the self-funded plan will be $1,214,027 in the red, adding in $170,122 in interest earned, the deficit will be $1,043,905. The CHO plan is projected to have a gain of $593,558. The projection in the combined plans is for a loss of $450,347. For next year’s projection Glen used a 15% inflation rate and included the $41.00 state share, this results in a negative fund balance of $2,429,809.
5. Consultant’s Report - Kris JonesThe paid claims experience reports for the past 6 months had a loss ration of 44.14% for the basic life insurance and 45.20% for the supplemental life insurance. There will be no change in the basic life or
supplemental life premiums. The proposed increase for LTD rates are: $7.05, $13.05, and $16.29. There are currently 17 employees on disability and a total of 36 claims have been filed over the past 3 years.
Motion: The motion was made and seconded to go out to bid next year if premiums are not adjusted down by UNUM.
Action: The motion carried.
Kris
gave the paid claims experience report for active employee/COBRA
on the self-funded plan. The expense to funding ratio is
84.02%, which is up just a little from last year. The total
retiree expense to funding ratio is 130.46%, and combining
all groups, the ratio is 90.74%. The ratio for the CHO plan
is 82.97%. The projected shortfall for the current year for
the self-funded plan is 2.5 million; but adding in the CHO
gain of $450,00 would result in an overall loss of 2 million.
This does not include interest and the $500,000 dental error.
For plan year 2003 the deficit is projected to be $2,929,780.
Motion: The motion was made and seconded by the subcommittee to allow cash outs of the OPR.
Action: The motion carried
Motion: The motion was made and seconded by the subcommittee to go with an in-house enrollment system that will be coming out of UM and at the present, not be interested in outside enrollment services.
Action: The motion carried.
LUNCH
Motion: The motion was made and seconded to postpone the decision that would allow employees to waive the MUS health plan until the March 7th meeting.
Action: The motion carried.
The subcommittee did not have a recommendation regarding colonoscopies, but requested additional information from Blue Cross as to the cost of this test and how many are scheduled.
The subcommittee did not have a recommendation on changing the policy regarding annual physicals.
Motion: The motion was made and seconded by the subcommittee to increase the out-of-pocket co-pay maximum on the prescription drug plan from $600 to $700, and increase the family out-of-pocket from $1200 to $1400 per year. The deductible does not change.
Action: The motion carried.
Motion: The motion was made and seconded by the subcommittee to adopt direct contracting with Montana hospitals.
Action: The motion carried.
Motion: The motion was made and seconded by the subcommittee to recommend adopting the self-funded HMO structure.
Action: The motion carried.
Motion: The motion was made and seconded by the subcommittee to increase the deductibles to $400 on the premium plan and $575 on the basic plan.
Action: The motion carried
Motion: The motion was made and seconded by the subcommittee to accept the rates as shown on Glen’s worksheet.
Action: The motion carried
7. Other Business
Chairman Mike Brown reiterated the IUBC has not changed its position regarding the issue of same-sex domestic partners.
The motion was made and seconded to adjourn the meeting.