SEBC Minutes
February 5, 2007
Page 1
State Employee Benefits Committee
March 15, 2007 - 1:00 p.m.
DuncanBuilding, 5th Floor
500 W. Loockerman St.
Dover, Delaware
The State Employee Benefits Committee met on March 15, 2007at the DuncanBuilding, 5th floor,Dover, Delaware. The following Committee members and guests were present:
SEBC Minutes
February 5, 2007
Page 1
Jennifer Davis, Director, OMB
Christine Pochomis, Director,
Benefits Insurance Administration, OMB
Pennie Hinds, Wachovia Insurance Services
Alison Porter, Wachovia Insurance Services
Debbie McCall, OMB, Benefits Administrator
Brenda Lakeman, OMB, Benefits
Ann Skeans, OMB, Benefits
Gail Hudson, OMB, Benefits
Finale Uptegrow, OMB, Benefits
Larry Frank, OMB, Benefits
Mary Thuresson, OMB, Benefits
Dawn Guyer, OMB
Jane Haseldine, OMB
Kim Wells, OMB
Faith Rentz, OMB, Budget Development
Richard Cordrey, Secretary of Finance
Rebecca Goldsmith, Department of Finance
Kim Vincent, OMB, Office of Pensions
Jack Markell, State Treasurer
Ann Visalli, Deputy State Treasurer
Andrew Kerber, Department of Justice
Karryl McManus, Deputy Secretary, DHSS
Russell Larson, Controller General
Steve Kubico, Controller General’s Office
Lori Christianson, Controller General’s Office
Matt Denn, Insurance Commissioner
Julian Woodall, Department of Insurance
Jill Ipnar, PHRST
Chris Ulrich, U of D
Jenice Stetz, United Concordia
Andrew Brancati, BCBSDE
Faith Joslyn, BCBSDE
Ed Tos, SEBAC Chair, DOL
Dr. Hal Bowen, DCSN
Michael Marquardt, MediGuide
Susan Juarez, MediGuide
Clarice Kwasnieski, Dominion Dental
Michael Howey, City of Dover
Kim Hawkins, City of Dover
Mary Sodl, Aetna
MichaelNorth, Aetna
Bob Byrd, DPCI
Michael Begatto, AFSCME, Co. 81
Karen Valentine, AFSCME, Co. 81
Greg Sisifo, Delta Dental
Roger Roy, Burris Firm
SEBC Minutes
March 15, 2007
Page1
Agenda Items Discussed:
Introductions/Sign In
Jennifer Davis called the meeting to order at 1:06 p.m. and asked for introductions around the table.
Approval of Minutes
Ms. Davisasked the SEBC toreview the February 26, 2007 SEBC minutes and make a motion for their approval. Mr. Larsonmade a motion to approve the minutes as presented. Ms.McManus seconded the motion. The minutes were approved as presented with a unanimous voice vote.
SEBC Minutes
March 15, 2007
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State Employee Benefits Advisory Council (SEBAC) Comments
Mr. Toscommended the SEBC for their leadership. The SEBAC supports recommended rates and the new dental plans being presented.
Group Health Insurance Program Financial Reporting
The FY07 2nd Quarter Financials / Fund Equity Report (as of February 2007) – Ms. Hinds provided an overview of the financial report which had a gain of $4 million. There is $30.5 million in OPEB, $4.2 million for Disability Insurance Program, and $.5 million for Wellness. Ms. Hinds stated the good results are mostly driven by BCBS savings.
Group Health Insurance Program Benefit and Rate Setting
Ms. Davis stated $7.7 million net is needed. Savings to what had been required due to bid process. Plans and rates were discussed (handouts). Anyone in Coventry who does not make an election will be defaulted into the equivalent plan in Aetna. Any decrease in rates is based on actuarial plans. All employees will be able to make elections during open enrollment. Ms. Davis recommended there be no increase in employee rates and asked for a motion. Mr. Markell made the motion and Mr.Larson seconded the motion. The motion carried with a unanimous voice vote.
Mr. Cordrey was concerned that with no rate increases for a few years, at some point there may be a large rate increase that would be harder on employees than small, steady increases. Ms. Davis was cognizant of the concern.
Statewide Dental Program – Award of Contract
Ms. McCall gave details of the Dental RFP and bidsfrom start to date. The recommendation of the Proposal Review Committee was:
Contract award for Dental HMO to Dominion Dental subject to a finalized contract. Contract award for a Preferred/Premier/Indemnity program to Delta Dental subject to a finalized contract.
Handouts describing current dental plans and the recommended new dental plan (Delta Dental) were compared and discussed. Transitional care will be in place with Delta Dental. Ms. Davis asked for a motion to award the contracts as recommended. Mr. Denn made the motion and Mr.Markell seconded the motion. Upon unanimous voice approval the motion was carried.
MediGuide Presentation
The Second Opinion Program was presented by Michael Marquardt and Susan Juarez. Areas covered were Measures of Success, Awareness Initiatives, Program Usage, Cost Savings, and Goals.
Ms. Davis asked for a motion for Christine Pochomis to be temporary Chair to continue the meeting as Ms. Davis had to leave the meeting. Mr. Cordrey made the motion and Russ Larson seconded the motion. Ms. Pochomis continued the meeting as temporary Chair.
Concern expressed Richard Cordrey as to lower usage in SussexCounty. Overall use was less than expected, even being a first year Pilot Program. Selfreferral was 93%, which was high, yet showed the state was getting information to the employees. No one was sent out of state for treatment. A notification procedure needs to be established and implemented to immediately inform an employee/patient of the second opinion program when a serious health diagnosis is made. The Second Opinion Program results need to be analyzed and costs discussed. A per use fee may be an option.
Director’s Report
Pre-Tax Commuter Program – Ms. Pochomis reported that there are currently 450 van pool participants, 152 new enrollees of which 127 are using the benefit for parking at the CarvelBuilding
HB 446 – Adult Child Dependant Program – Ms. Pochomis reported there are 45 enrollees and five applications pending.
Wellness Program – Ms. Pochomis reported the presentations will begin next week. Mailings will start going out to employees from StayWell the last week of this month. The incentive will be in the May 11 and June 22 paychecks.
Other Business
None.
The next meeting will be March 30, 2007 at 1:00 p.m. at the TatnallBuilding.
Ms. Pochomis asked for a motion to adjourn to Executive Session at 2:25 p.m. Mr. Markell made the motion and Mr. Cordrey seconded the motion. Motion passed with a unanimous voice vote.
Respectfully submitted,
Mary Thuresson
Administrative Specialist II
Statewide Benefits Office, OMB