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F-Thursday-April 21, 2016 In The Matter Of: Public Employees' Benefits Program Teleconferenced Open Meeting Thursday April 21, 2016 Capitol Reporters 208 N. Curry Street Carson City, Nevada 89703 Original File 042116 PEBP_1.txt Min-U-Script® with Word Index STATE OF NEVADA PUBLIC EMPLOYEES' BENEFITS PROGRAM TELECONFERENCED OPEN MEETING THURSDAY, APRIL 21, 2016 CARSON CITY, NEVADA THE BOARD: LEO DROZDOFF - Chairman JACQUE EWING-TAYLOR - Vice-Chairperson ANA M. ANDREWS - Member DON BAILEY, SR. - Member JUDY SAIZ - Member JIM WELLS - Member JEFFREY A. GAROFALO - Member ROBERT T. MOORE - Member DR. CHRISTOPHER R. COCHRAN - Member For the Board: DENNIS BELCOURT Deputy Attorney General Executive Staff: DAMON HAYCOCK Executive Officer LAURA RICH Operations Officer CELESTENA GLOVER Chief Financial Officer KARI PEDROZA Executive Assistant NANCY SPINELLI Public Information Officer MEGAN SLOAN Contract Manager REPORTED BY: CAPITOL REPORTERS NICOLE ALEXANDER, NV CCR #446 CAPITOL REPORTERS (775) 882-5322 1 I N D E X AGENDA ITEM PAGE 1. Open Meeting; Roll Call 6 2. Public Comment 7 Public comment will be taken during this agenda item. No action may be taken on any matter raised under this item unless the matter is included on a future agenda as an item on which action may be taken. Persons making public comments to the Board will be taken under advisement but will not be answered during the meeting. Comments may be limited to three minutes per person at the discretion of the chairperson. Additional three minute comment periods may be allowed on individual agenda items at the discretion of the chairperson. These additional comment periods shall be limited to comments relevant to the agenda item under consideration by the Board. Persons making public comment need to state and spell their name for the record at the beginning of their testimony. 3. Presentation on Ethics in Government. (Yvonne 24 Nevarez-Goodson, Esq., Executive Director, Nevada Commission on Ethics) (Information/Discussion) 4. Discussion and possible action regarding the 48 framework for development of the Agency Budget Request for the 2017-2019 Biennium. (Celestena Glover, Chief Financial Officer) (For Possible Action) 5. Discussion and possible action including Board 89 direction regarding the Health Maintenance Organization (HMO) Request for Proposal (RFP) Scope of Work inclusions. (Damon Haycock, Executive Officer) (For Possible Action) 6. Executive Officer Report. (Damon Haycock, 156 Executive Officer) (Information/Discussion) CAPITOL REPORTERS (775) 882-5322 2 I N D E X AGENDA ITEM PAGE 7. Discussion, review, and possible action 171 regarding the creation of a Board survey for PEBP staff participation. (Leo Drozdoff, Board Chair) (For Possible Action) 8. Discussion, review and possible action 179 regarding the approval of the PEBP Advisory Committee's recommended changes to the Board's Duties, Policies and Procedures. (Bob Moore, Advisory Committee Chair) (For Possible Action) 9. Discussion, review, and possible action 203 regarding the approval of the PEBP Advisory Committee's recommended changes to the Board's Strategic Plan. (Bob Moore, Advisory Committee Chair) (For Possible Action) 10. Discussion and possible action to (a) develop 207 Performance Expectations for use by the PEBP Board in evaluating the Executive Officer and (b) review and approve the Executive Officer's proposed goals and objectives for Plan Year 2017. This agenda item may include but shall not be limited to: 10.1 Review of previous Performance Expectations developed for use by the PEBP Board in evaluating the Executive Officer. 10.2 The Board may appoint an advisory committee or direct staff to obtain other assistance for the completion of the objectives of this agenda item. (Damon Haycock, Executive Officer) (For Possible Action) 11. Consent Agenda (Leo Drozdoff, Chair) 214 (All Items for Possible Action) Consent items will be considered together and acted on in one motion unless an item is removed to be considered separately by the Board. 11.1 Approval of the Action Minutes from the March 11, 2016 PEBP Board Meeting. CAPITOL REPORTERS (775) 882-5322 3 I N D E X AGENDA ITEM PAGE 11.2 Acceptance of the revised State of PEBP report. 11.3 Ratification of the evaluation committee's decision to award a contract for Actuary and Consulting services effective July 1, 2016 to Aon Hewitt -- Request for Proposal No. 3211. 11.4 Acceptance of the PEBP Chief Financial Officer Reports 11.4.1 Quarterly Budget Report for the timeframe July 1, 2015 -- December 31, 2015. 11.4.2 Quarterly Utilization Report for the timeframe July 1, 2015 -- December 31, 2015. 11.5 Health Claim Auditors, Inc. quarterly audit of HealthSCOPE Benefits for the timeframe October 1, 2015-December 31, 2015. 11.5.1 Report from Health Claim Auditors 11.5.2 HealthSCOPE Benefits response to audit report 11.5.3 Accept audit report findings and assess penalties, if applicable, in accordance with the performance guarantees included in the contract pursuant to the recommendation of Health Claim Auditors. 11.6 Acceptance of Vendor Reports 11.6.1 HealthSCOPE Obesity Care Management Program enrollment & utilization data for time period 10/1/15 -- 12/31/15. 11.6.2 Carson Tahoe Health System Diabetes care management program enrollment and utilization report for time period 7/1/15 -- 9/30/15. CAPITOL REPORTERS (775) 882-5322 4 I N D E X AGENDA ITEM PAGE 11.6.3 The Standard Basic Life and LTD data & performance report for time period 10/1/15 -- 12/31/15. 11.6.4 Towers Watson's OneExchange enrollment & performance report for time period 10/1/15 - 12/31/15. 12. Public Comment 222 Public comment will be taken during this agenda item. Comments may be limited to three minutes per person at the discretion of the chairperson. Persons making public comment need to state and spell their name for the record at the beginning of their testimony. 13. Adjournment 226 CAPITOL REPORTERS (775) 882-5322 5 1 CARSON CITY, NEVADA; THURSDAY, APRIL 21, 2016; 9:00 A.M. -O0O- 2 3 4 CHAIR DROZDOFF: Good morning. I think we'll 5 call this meeting of the Public Employees' Benefit 6 Program to order. Kari, can you take the roll? 7 MS. PEDROZA: Jacque Ewing-Taylor? 8 CO-CHAIR EWING-TAYLOR: Here. 9 MS. PEDROZA: Ana Andrews? 10 MEMBER ANDREWS: Here. 11 MS. PEDROZA: Don Bailey? 12 MEMBER BAILEY: Here. 13 MS. PEDROZA: Jim Wells? 14 MEMBER WELLS: Here. 15 MS. PEDROZA: Judy Saiz? 16 MEMBER SAIZ: Here. 17 MS. PEDROZA: Bob Moore? 18 MEMBER MOORE: Here. 19 MS. PEDROZA: Chris Cochran? 20 MEMBER COCHRAN: Here. 21 MS. PEDROZA: Jeff Garafalo? 22 MEMBER GARAFALO: Here. 23 MS. PEDROZA: Member Garcia has been excused 24 today. And Chair Drozdoff? 25 CHAIR DROZDOFF: Here. Thank you. Okay. So CAPITOL REPORTERS (775) 882-5322 6 1 we will move to public comment. I wanted to let the 2 public know that in addition to public comment on Item 2 3 and Item 12, I'll also take specific public comment on 4 the HMO RFP, which is Agenda Item 5. If there's time 5 issues, certainly people can speak any time they want, 6 but I just want to make sure that there will be a 7 specific public comment during Item No. 5. 8 With that, I'll open public comment. Go 9 ahead and come on up, Peggy. If there's anybody in Las 10 Vegas -- looks like -- so we'll go Carson City first, 11 then Las Vegas. 12 MS. LEAR-BOWEN: Good morning. My name and 13 my words, for the record, my name is Peggy: P-e-g-g-y, 14 Lear: L-e-a-r. Bowen: B-o-w-e-n. I'd like to do a 15 little quoting here from a letter of May 21st, 2007 from 16 Bill Raggio. I save everything. On the recommendations, 17 he's talking about the Legislature passing, in 2003, 18 Assembly Concurrent Resolution No. 10. 19 One of the recommendations of the study was a 20 State requirement that local government plans include 21 commingling. Commingling is a method of grouping the 22 claims experiencing of one pool of participants with 23 another in an effort to get an equitable and stable tax 24 rate structure, and that's in regards to the orphans. 25 And what Bill Raggio saw should be done that they could CAPITOL REPORTERS (775) 882-5322 7 1 be separated as far as their costs, but not as far as 2 their benefits; that they were to be commingled in all 3 benefits. 4 Number two, I would strongly recommend to you 5 to please rescind anything that has to do with you not 6 having a secondary review, that you keep the language in 7 place. That is in place because it is not mandatory. It 8 is only in case you want to. And as a board, that's what 9 made you different from the other agencies of the State 10 of Nevada, and you utilized it and you discovered that 11 there were some inadequacies with what was going on in 12 determining insurance programs. Please rescind and keep 13 your status as a board that makes the determination and 14 not other agencies, including that of purchasing. 15 The fact that behind closed doors on February 16 26th, it was determined by a state agency, an Attorney 17 General with your Executive Director present, that they 18 would rescind an RFP. That rescission should not have 19 taken place based on the flaw that the Board determined 20 that you -- that negotiations had ended. They didn't 21 allow the Committee Report to come forward that afternoon 22 and let you determine whether negotiations had ended.
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