The 4th meeting of the Interim Joint Committee on Banking and Insurance was held on Wednesday, October 29, 2008, at 10:00 AM, in Room 149 of the Capitol Annex. Senator Tom Buford, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Tom Buford, Co-Chair; Representative Tommy Thompson, Co-Chair; Senators Julian M. Carroll, Julie Denton, Ernie Harris, Dick Roeding, Dan Seum and; Representatives Sheldon E. Baugh, Johnny Bell, James R. Comer Jr., Will Coursey, Ron Crimm, Mike Denham, Ted Edmonds, Tim Firkins, Danny Ford, Jim Gooch Jr., Jeff Greer, Mike Harmon, Dennis Horlander, Dennis Keene, Adam Koenig, Rick Rand, Steve Riggs, Arnold Simpson, John Tilley, Ken Upchurch and Susan Westrom.
Guests: Fred Nelson, Commissioner, Tim Longmeyer, Deputy Commissioner, and Joe Cowles, General Counsel, Personnel Cabinet; Dr. Susan Zepeda, Executive Director, Foundation for a Healthy Kentucky.
LRC Staff: Rhonda Franklin, Chad Collins and Jamie Griffin.
The minutes of the September 23, 2008, meeting were approved.
Representatives of the Personnel Cabinet presented a PowerPoint presentation regarding the 2009 Kentucky Employees Health Plan. Deputy Secretary Tim Longmeyer stated that there were many challenges in the negotiation of the 2009 plan. He said the following things contributed to the challenges: continuing health plan inflation; the 2008 contributions were artificially lowered; health benefit plans have not changed in years; the highly used plans lack diversity; consumer complacency; the lack of a meaningful wellness plan; and, little utilization of the HRA based plan.
Mr. Longmeyer stated that the principles of the 2009 Health Plan are: to provide uniform coverage across the Commonwealth; encourage wellness and healthy lifestyles; provide preventive care at little or no cost; improve chronic disease care; educate members about plans that are more appropriate for their health needs; provide plan alternatives that are accessible for retirees; provide a quality PPO option; provide an improved subsidy for family and dependent coverage; and, provide plans with unlimited lifetime maximums. He gave the committee an overview of the medical plan and pharmacy alternatives. He stated that also in 2009 there will be two additional programs available: implementation Virgin Health Miles walking program; and improved disease management programs. He stated the main goals of the 2009 plan are to: maintain comparable benefits for 2009; continue to provide benefits option with $0 contribution for employees; reduced contribution increases for dependents’, continue to provide an unlimited lifetime maximum for benefits options; and, begin wellness initiatives and improve disease management.
Senator Julian Carroll stated that he feels the Personnel Cabinet is doing a superb job and is very impressed with the wellness program.
Deputy Secretary Longmeyer stated that the wellness program is voluntary at this time. But he hopes many employees will utilize the program.
Senator Tom Buford asked how much the state pays Express Scripts to be the third-party pharmacy benefit administrator.
Commissioner Fred Nelson stated that they did not have that information with them and would get that information back to the committee.
Dr. Susan Zepeda, Executive Director, Foundation for a Healthy Kentucky, gave the committee an overview of the foundation and the programs and grants they administer as well as numerous polls they have conducted regarding insurance status, Medicaid, access to healthcare, and quality of healthcare.
Senator Julian Carroll stated that he was glad to have this information and was impressed with the programs and surveys the foundation conducts.
The meeting adjourned at 11:45 a.m..