From: hrdist@uoregon.edu [mailto:hrdist@uoregon.edu]
Sent: Wednesday, June 10, 2009 2:11 PM
Subject: [HR] PEBB 2010 Statewide Medical Plan (from Jim Bean)

The following message is forwarded on behalf of Senior Vice President and Provost Jim Bean

Colleagues:

You may have heard recently of the plans of the state benefits board, PEBB, to change from a plan both insured and administered by Regence Blue Cross/Blue Shield, to a new program that is self-insured by the State and administered by Providence. We are still not sure if the decision is final, but are gathering information. If it does go through, here are a few facts.

• 1. Providence is not the insurer, the State is. Providence will serve as a third-party administrator that simply signs contracts with providers and processes claims. They do not get to select or restrict providers.
• 2. The proposed plan has exactly the same attributes as the current plan. There is no reduction in planned service. Any changes in delivered service we will evaluate over time. It is a proposed two year contract.
• 3. The list of providers will begin with the Providence panel, but we can request adding any others we wish by contacting PEBB (so long as they wish to sign the contract).
• 4. There are still outstanding questions related to, 1) mental health providers (locally, relatively few are on the Providence panel), and 2) how the new system can be 10% more efficient than the old.
• 5. There have been rumors the legislature could take back the fund balances of PEBB. Without those fund balances, the self insurance option might be off the table. It would certainly complicate matters. PEBB has posted an FAQ at: http://www.oregon.gov/DAS/PEBB/docs/PDF/2009/BoardNews/2010HealthcarePlansQA.pdf.

We are working diligently on this with the help of the University Senate, incoming and outgoing members of the Faculty Advisory Committee, and the Interinstitutional Faculty Senate.

Thanks, Jim