BENEFITS ADVISORY COMMITTEE

MINUTES OF MEETING

SEPTEMBER 16, 2004

[In these minutes: Employee Benefitsπ Announcements, RFP Pharmacy Plan Design Recommendations, Health Improvement/Wellness Panel]

[These minutes reflect discussion and debate at a meeting of a committee of the University Senate or Twin Cities Assembly; none of the comments, conclusions, or actions reported in these minutes represent the view of, nor are they binding on the Senate or Assembly, the Administration, or the Board of Regents.]

PRESENT: Gavin Watt (chair), Linda Aaker, William Roberts, Pam Wilson, Karen Wolterstorff, Peter Benner, Jody Ebert, Ronald Enger, Rhonda Jennen for Rita McCue, Joseph Jameson, Carla Volkman-Lien, Carol Carrier, George Green, Carl Anderson, Susan Brorson, Don Harriss, Fred Morrison, Richard McGehee, Peh Ng, Theodor Litman, Rodney Loper, Dann Chapman,

REGRETS: Michael Marotteck, Amos Deinard

ABSENT: Don Cavalier, Frank Cerra, Keith Dunder

GUESTS: Watson Wyatt representatives Tamra Lair and Steph Pronk, Elaine Anderson and Marilyn Bach of Fairview Health Services and Phil Burfeind of American Healthways

OTHERS: Linda Blake, Karen Chapin, Jennifer Durocher, Shirley Kuehn, Gladys McKenzie, Kathy Pouliot, Ruth Rounds, Phyllis Walker

I). Gavin Watt called the meeting to order.

II). Employee Benefitsπ Announcements:

• Copies of the åU & Your Benefitsπ newsletter were distributed to members for their review. All faculty and staff should be receiving this newsletter in their campus mailboxes by the end of next week. The newsletter emphasizes that starting this year, open enrollment will be conducted on-line via computer. Mr. Chapman noted that Employee Benefits is taking extra strides to deal with the accessibility issue for those employees who do not have regular access to a computer and for second and third shift employees as well.
• Mr. Chapman distributed a copy of an editorial article, which is appearing in todayπs Minnesota Daily. The opinion piece addresses concerns that have been raised related to the Universityπs budget constraints and rising health care costs.
• Karen Chapin reported that Employee Benefits contacted the State of Minnesota to find out about their Canadian drug purchasing program, Total Care Pharmacy. Through this program, State employees can order a limited number of prescription drugs. The drugs are limited to a certain set of brand drugs and their generic equivalents on which both the State and its employees experience a savings. Employees save because they do not have to pay a co-pay. So far the program has been available to State employees for approximately three months and the State estimates the savings to be around $100,000 ($50,000 on the State side and $50,000 in savings by employees). Currently, data from this program is not being fed into the Stateπs plan data coop at this time; however, the State is optimistic they will be able to feed this information into their plan data coop by the end of the year.

In terms of the University offering this type of program, technically it is possible. However, the University would need to review the legalities of this type of program.

III). After much discussion the BAC made the following RFP pharmacy plan design recommendations to the administration:

• Remove the separate ≥lifestyle≤ drug classification, which currently exists in the plan design.
• Include biotech drugs in the UPlan with prior authorization.
• Receive bids from vendors on two co-payment models and a co-insurance model, and incorporate the effects of instituting a therapeutic equivalent/substitution rule with each of these models.
• Require the Universityπs PBM (Pharmacy Benefits Manager) to intervene with users of higher priced non-formulary drugs to advise them of other drug options.

IV). Next, Ruth Rounds introduced three panelists, Marilyn Bach and Elaine Anderson of Fairview Health Services and Phil Burfeind of American Healthways. The purpose of their presentation was to give the Committee a better understanding of health improvement services in general. Ms. Bach and Ms. Anderson shared information about the Fairview Alive health improvement /wellness initiative, which included their personal testimony about their experiences with the program. Then, Mr. Berfine shared information on disease and care management, services delivered by American Healthways.

Upon conclusion of this presentation, members agreed that the University should pursue incorporating health improvement as an integral part of the UPlan.

V). Other Business:

1. Tamra Lair and Stephanie Pronk of Watson Wyatt distributed booklets to each member, which will be used at future BAC meetings to help facilitate the RFP discussion. Members were asked to bring these booklets to upcoming BAC meetings.

2. Members were informed that it is likely that the BAC meeting on October 21^st will be extended by an hour or two, and to mark their calendars accordingly. This meeting will be the last opportunity for the Committee to provide input on what they believe should be incorporated in the RFP.

VI). Hearing no further business, Gavin Watt adjourned the meeting.

Renee Dempsey

University Senate