Monday, March 12, 2012

PEBP Board to consider how to spend down massive excess reserve

The PEPB Board meets this Wednesday, March 14, at 9am and its agenda includes an item to discuss premiums, plan design changes and other measures that might be taken in the coming plan year (2012-2013).

On page 2 of the PDF is the info for agenda item VII which is about setting rates for 2012-2013 including use of "excess reserves". These are the choices they will be presented

a. Options for utilizing Excess Reserves:
i. Amend the base subsidy allocation percentages paid by participants in the Consumer Driven PPO High Deductible Health Plan, the Southern HMO Plan and the Northern HMO Plan as provided in Appendix A of the Duties, Policies and Procedures and/or

ii. Modify the Health Savings Account and Health Reimbursement Arrangement contributions

b. Providing the same subsidy for domestic partners as is provided for spouses

c. Approving the rates, State subsidies and participant contributions to utilize Excess

Page 4-5 states that they now estimate "excess reserves" (above the amount they need to keep on hand for unfiled claims, catastrophic claims and payments into HSA) at $29.8m for the end of this plan year that they could apply to next year as above.

However, note that on page 26 of the PDF is the quarterly financial report for the quarter ending Dec 31, 2011 which shows an actual cash-on-hand above necessary reserves of $55.8m which is a whopping $44m above what they told the legislature they would have on hand at this point in the year.

Faculty and staff wishing to express their views might consider submitting email or calling (800) 326-5496 or contacting the individual PEBP Board members including NSHE representative Jacque Ewing-Taylor before Wednesday morning.


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