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Summary as of 5.12.2017

The Joint Insurance Committee with representatives from the Management Steering Committee (MSC), LCCEF and Human Resources has been meeting with Pat Cross from Pacific Benefits Consultants for several weeks over the insurance request for proposal (RFP).

We started with 5 respondents to the RFP as was updated previously and we had agreed as a committee to narrow that field of carriers down to two. Providence Health Care and Pacific Source. Both are Oregon companies and had a lot to offer our members.

There is an important distinction between the Joint Insurance Committee (JIC) and the bargaining with the college over the impact of the insurance carrier. The JIC makes a recommendation to the President over carrier plan design. The President takes the carrier proposal to the Board of Education for approval. Then bargaining begins. The classified bargaining team has the charge to then bargain the impact of the insurance plan design change. We cannot bargain the carrier.

Bargaining has been in a holding pattern to wait for the completion of the insurance RFP process and

The renewal costs started here for 12-month rate comparisons:

Our Plan Design:

Pacific Source – 6.9%

Providence – 3.1-3.3%

Regence – 8.8%

United Health Care – 3.2% (only offers standard plans)

Health Net – non responsive

Standard Plan – Off the Shelf:

Pacific Source – 1.7%

Providence – 2.4%

Regence – 6.6%

United Health Care – 3.2%

The biggest differences between our plan and the standard off the shelf plans:

  • Out of pocket maximums – we are lower
  • 4th Quarter Carryover – we have it but the usage is less than the cost
  • Drug List and Specialty Drugs – longer no cost list
  • Out of network deductibles – lower costs

After Regence, United Health and Health Net were dropped from consideration based on Regence not willing to negotiate, United Health Care – no plan that will match us and Health Net – non responsive.

After meeting with Providence Health Care sales and underwriting staff in an in person interview, we found that their plan was comparable and the cost was close to our current Pacific Source plan. Since Providence is a faith based organization, there were restrictions for women’s reproductive health that the members of the committee were concerned about. That issue was a deciding factor to stay with pacific Source for equity and inclusion.

Pacific Source was chosen and Pat Cross went to work on negotiating with Pacific Source, with the looming option to move to OEBB or Providence, they responded. Pacific Source wants to keep the management and the classified group as would any business, so as a business they rolled up their sleeves with Pat and made it happen.

Our overall renewal rate is .54% – Yes that is a bit over ½%

The rate charts have not even been fully updated yet from Pacific Source and Human Resources. Understand when these come out, the charts will be BEFORE bargaining the impact. The college and the Board of Education is still standing on their platform of no new money going into insurance.

We (management and classified) will have 7 plans, down from 10. We will keep our original 6 plans and 1 added one new plan. The first 6 plans are the SAME plans that we have now. The new seventh plan is a higher deductible plan $1300 that will provide an option without any payroll deduction. We heard from many members who are duly covered and this is not the primary coverage, did not want coverage and or did not want any payroll deduction. There will now be that option available with the Smart Choice Plan D. Under the Pacific Source contract we are required to insure all employees to decrease adverse selection.

The Alternative Care Rider is new for both groups. This is better coverage for management and even with the change it should be a better benefit to classified overall.

Here is the difference: This is an insurance rider instead of having alternative care as a part of the base insurance package. So with that separation we are able to take away the need to meet the deductible and add a $25 co-pay. The total benefit cap will now be $2500. This $2500 is per insured person, so if you are on an employee plus 1 plan (E+1), both of you receive $2500. This is the same for in or out of network providers. We made sure that the provider did not have to be in network.

The old contract allowed open-ended billing for providers, which allowed them to charge larger than normal charges for the same benefit to someone outside of insurance. There will now be a billable limit. The real market rates should all be covered.


60-minute massage that costs $100

$25 co-pay

No deductible to meet

$75 goes against the total $2500 benefit

Under the current plan, you would receive 24 units of alternative care, but would have to meet your deductible of $500-$1000 prior to being able to truly use the benefit. There are enough members that do not meet their deductible. This will provide an opportunity for some members to avail themselves to the alternative care package.

In addition, on July 1st, everyone will immediately have access to the alternative care package and will be able to start right off with the $25 co-pay to receive care. Under the previous example above, IF you had met your deductible, then you would have paid $20 as the 20% of the 20%/80% benefit that we currently have; a difference here of $5.

The funds in your current Section 125 account can be used through December 31, 2017.

The next steps:

1) The insurance recommendation goes to the President and to the Board of Education

2) Once approved, Bargaining commences on the impact of the plan design change.

3) Concurrently, there will be information and open enrollment sessions that will be scheduled so members can get informed and make any changes necessary while bargaining continues.

If you like the plan that you are on, you may just have to confirm that with Human Resources, but there is no need to change unless desired by payroll deduction, deductible or plan design.

Look for the PRE-BARGAINED rate charts to be released soon and watch for open information sessions that will include representatives from Pacific Benefits Consultants, Human Resources and LCCEF representatives.

If you have questions, send them to as all of the Executive Officers have access to this e-mail account and can help answer your questions.

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