Healthcare Cost Containment Committee Minutes
January 9, 2012
The meeting was convened at 9:05 by Dr. Woodruff. Three topics were on the agenda. These were an update on the Partnership Plan, Implementation of SilverScript pharmacy benefit card for medicare retirees, and the first budget report on the healthcare plans.
Woodruff reported progress in discussions with OPM and SEBAC regarding the actuarial methodology for pricing the non-state public plans, the degree of rate guarantees, the risk charges, renewal rates and participation rules. Only a few outstanding issues were reported. Woodruff also reported that the Comptroller was sending letters to mayors and school superintendants requesting that they submit data for analysis.
OPM has requested that OSC establish as large a base of potential participants for the partnership pool.
Tracy Dunn reported on implementation issues related to the SilverScript program. Silverscript is the administrator for a CMS subsidy program whereby the state receives subsidies for prescription drugs for medicare retirees. It is estimated that the state will save as much as $30 million per year of additional subsidies from the federal government by implementing this program.
Administration of the program is extremely complex and involves coordination of files between CMS and the Silverscript administrator. In addition, Caremark needed to transfer all of the unique features to the state’s plan over to Silverscript and Silverscript needed to install all of the state’s unique features regarding drugs, copay, mandatory generic over-rides,etc.
Silverscript’s print vendor failed to mail the cards on time so a number of retirees did not have their new cards on January 1, 2012, the start date of the new program. OSC has a procedure in place to fix this at the pharmacy and most of the retirees were able to get their drugs on time. However, a number of problems existed and OSC staff has worked long hours and weekends fixing problems created by Silverscript and CMS for the implementation.
Rae-Ellen Roy reported on the budget forecasts for our plans through the end of the fiscal year. She explained the difference between appropriated funds and funds allotted to OSC by OPM. The estimates show that the active employee plans should run a small surplus in both appropriated and allotted amounts. However, due to a $111 million hold back by OPM the retiree account is projected to have a deficit. The Comptroller has requested that all or most of the appropriated funds be restored.
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