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

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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