February 23, 2010 SPECIAL MEETING MINUTES
NEBRASKA COMPREHENSIVE HEALTH INSURANCE POOL (CHIP) BOARD OF DIRECTORS MEETING
Members Present:Vic Kensler, Dick Netley, Pat McPherson, Sherry Wupper, Bob Corn and Randy Boldt
Member Dialed In: Brian Angel
Others Present: Martin Swanson, Nebraska Department of Insurance; Halley Ostegard with Senator Ben Nelson’s Lincoln Office; Adam Steffen, and Gigi Stamp from Blue Cross and Blue Shield of Nebraska (BCBSNE)
Chairman Kensler opened the meeting at 10:00 A.M. by introducing and welcoming new member, Randy, Boldt, members and guest.
Discussion
Chairman Kensler began by reviewing the following letters:
- Senator Nelson’s letter dated February 2, 2010
- letter to Senator Nelson from Charlene Frizzera, Acting Administrator for DHHS
- Chairman Kensler’s letter of February 5, 2010 in response to Senator Nelson
The purpose of today’s meeting was to decide how and when to disperse the funds available from CMS. During the December meeting the board voted to give a monthly premium relief to insured children not to exceed 100% of SRR.
It was determined that by adjusting the children rates to 100% of the SRR that only a portion of the grant fund would be used. Director Netley suggested some relief given to those whose out-of-pocket prescription costs are exceptionally high. After much discussion this proposal was abandoned as there appeared to be many administrative hurdles and opportunities for inconsistent application of the grant funds. However, Director Corn stated that he would like to discuss this issue further at a later date to seek a way for copayments for prescription drugs to apply to our policy holders’ out-of-pocket maximums. BCBSNE had proposed using the remaining funds for a one-time $110 credit to all policy holders (other than children).
Director Angel asked if the remaining funds could be carried over to 2011. Mr. Swanson felt that CMS wants the funds spent by the end of 2010.
Director Boldt made a motion to apply CMS funds to premium relief of children rates from 1/1/2010 to 12/31/2010 taking rates to 100% level, calculating a 12-month refund and applying it over a nine-month period with a separate children rate for new applicants. The balance of the funds would be paid in a one-time premium relief credit to adult policy owners. Director McPherson seconded the motion.
Director McPherson moved that we amend the motion that the premium rate relief be only for children and adult policy owners of record as of 4/1/10. The amendment was seconded by Director Corn. The motion to amend was passed 6-0. The amended motion was then brought to a vote and passed 6-0.
Mr. Steffen said that approximately 60 children had dropped their insurance most likely due to the rate increase and the unknown of short-term premium relief. It was felt that to be fair those terminated child policy holders be notified and offered a chance to re-enroll their policy as long as:
- they were eligible,
- not on state aid or SCHIP, and
- pay back premiums by a certain date (i.e. 30 days from date of letter inviting reversal)
Director Netley made a motion those children who were enrolled in CHIP through December 31, 2009 and who dropped their policies after January 1, 2010 be given notice of the premium rate relief for calendar year and be allowed the opportunity to re-enroll; subject to the conditions mentioned above are met. The motion was seconded by Director Boldt. The motion passed 6-0.
BCBSNE will draft the letter. Director Netley and Chairman Kenslerwill review before the final is released at the next board meeting on Wednesday, March 3, 2010.
Meeting was adjourned at 11:00 a.m.