![[Top]](/images/nav-top.gif){kind=small}
![[Back]](/images/nav-back.gif){kind=small}
![[Home]](/images/nav-home.gif){kind=small}
April 14, 2003
Room 302
State Capitol
Cheyenne, Wyoming
Senator Cale Case, Chairman;
Senators Irene Devin, Mike Massie and John Schiffer;
Representatives Elaine Harvey, Larry Meuli and Phil Nicholas.
John Rivera, Senior Staff Attorney, Mike Causey, Staff Attorney and Bill Mai, Senior Legislative Analyst.
Please refer to Appendix 1 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.
None
All meeting materials and handouts provided to the Committee by the Legislative Service Office (LSO), public officials, lobbyists, and the public are referenced in the Meeting Materials Index, attached to the minutes. These materials are on file at the LSO and are part of the official record of the meeting.
Chairman Case called the meeting to order at 8:30 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
Chairman Case reviewed the footnote to the Budget Bill that created the Subcommittee and explained he had prepared a draft request for proposal (RFP) as a starting point for Subcommittee consideration of the scope of its study (see Appendix 3).
The Subcommittee then discussed if the study should be limited to a review of the State Employees' and Officials' Insurance Program or if it should include the full benefit package available to state employees.
Chairman Case advised that the draft RFP would be revised after the Subcommittee has determined what issues will require the services of a consultant and which issues can be studied by other resources available to the Subcommittee.
Public Comment
Ms. Alfrieda Gonzales, Senior Policy Analyst, Governor's Office, advised that several agencies within the executive branch are working with Dr. Harold Gardner on a project to develop a comprehensive database to permit a detailed study of client services and the agencies. The project is on a fast-track with preliminary results expected by July, 2003.
Chairman case asked Ms. Gonzales for a written overview of the executive branch project to avoid duplication of efforts or working at cross purposes by the executive branch and the Subcommittee.
Dr. Harold Gardner advised he has sold OCI and formed a new company, Human Capital Management Services, Inc., to spend more time working in Wyoming on Wyoming issues. The project described by Ms. Gonzales will consist of an overlap analysis of health programs with other benefits offered by the State. He suggested the Subcommittee should use part if its fifty thousand dollar ($50,000.00) appropriation to establish a baseline of the state employee health insurance program for years 2001 and 2002 to compare utilization of the program prior to, and since, the revisions to the program that became effective this year. He stated discussions are ongoing with respect to the scope of the study that is being planned with the Governor's Office. There has not been any discussion to date about a study task similar to the study the Subcommittee will be undertaking. He believes a database will have to be developed before the Subcommittee can effectively conduct its study.
Dr. Gardner's focus, if he were selected as the consultant to assist the Subcommittee, would be on analysis and a strategic approach, not on tactical decision-making. In response to a question from the Subcommittee about the adequacy of the appropriation to study all issues presented in the authorizing legislation, Dr. Gardner said the available money is not adequate to review all the issues included in the legislation. He provided a copy of and article he has published explaining the effect of disability benefits for worker productivity (see Appendix 4).
Mr. Ken Vines, Insurance Commissioner, provided a copy of the Insurance Department's June 30, 2001, review of the financial solvency of the State Employees' and Officials' Group Insurance Program (Appendix 5) which is required every three years. The review showed no significant concerns regarding the program's solvency. There were a few minor findings that have been or will be addressed satisfactorily in accordance with a response letter for Mr. Ralph Hayes included in the report. In response to Subcommittee questions, Mr. Vines explained that Blue Cross/Blue Shield of Wyoming is the administrator of the high risk insurance pool and he may be able to obtain data from the administrator for the Subcommittee with respect to costs and trends of the pool.
Representative Nicholas also asked for a representative from the Workers' Compensation Program to be present at the next Subcommittee meeting to advise of the effect that the program has on state employees health care utilization.
Mr. Darald Dykeman, Human Resources Division, Department of Administration and Information (DA&I), advised that Mr. Hayes and staff are traveling around the State putting on workshops on the open enrollment period under the revised eligibility standards for the state employee insurance program. State employees are generally pleased with the changes made to the program. The Division is interested in creating a data systems warehouse similar to the database Dr. Gardner described. Currently there are eleven different databases that contain important information about employees of various state entities. Those should be combined into a single data systems warehouse and the data could be shared with a consultant selected by the Subcommittee if time permitted compilation of the data. A problem may exist with new privacy requirements imposed by the federal Health Insurance Portability and Accountability Act (HIPAA).
Representative Nicholas requested that Mr. Dykeman and Mr. Hayes review the draft RFP to see if there are problems with it. He also asked Mr. Dykeman to advise what resources DA&I can provide to the Subcommittee for its study this interim. Chairman Case asked Mr. Dykeman to provide an inventory of studies conducted on state employee benefits. Mr. Rivera was requested to obtain a copy of a report on employee benefits conducted by the Community College Commission.
Mr. Don Heilman. Gallagher and Byerle, Inc., asked if the final RFP will establish criteria for a proposal or if the RFP will simply ask what a potential contractor can provide for the monies available, given the charge of the Subcommittee. Representative Nicholas stated the Consultant should provide a letter to LSO explaining what it can do for the $50,000.00.
Mr. Heilman stated his firm has worked with twelve states over the last five to eight years, looking at restructuring of state employees' benefits. He stated the Internal Revenue Service recently allowed some carry-over of funds in medical savings accounts. Such carry-over has to be carefully structured to avoid complications.
Mr. Chris Hulla, Buck Consultants, stated the study should focus on five areas, including data integration, processes, systems, benefits and human resources. A menu of options could be developed for the benefits options. For the $50,000.00, his firm could identify short-term objectives, but long-term goals may require more study and data integration. He was asked to provide a written explanation of the firm's qualifications and the areas it would focus on with respect to the study.
Mr. Lawrence Wiscombe, Marsh USA Risk & Insurance Services, Inc., advised he believes the Governor's integration of data is a longer term proposal that the Subcommittee will not be able to wait for, given the deadline the Subcommittee has for submitting its report. He believes the draft RFP is too broad for the $50,000.00 available. He believes the study can be accomplished if the issues relating to retirees, sick leave and school district employees are not part of the RFP. The health insurance issue is all that can effectively be studied by a consultant for $50,000.00, since important data is probably readily available. That data can be a starting point to analyze usage of the state health insurance program and to provide recommendations needed to make employees better informed decision-makers. Case management and employee education are new concepts without track records, but appear to be key components in improving health care systems. Chairman Case asked for Mr. Wiscombe to provide to LSO the firm's qualifications and any recommendations he may have with respect to the study.
Mr. Dennis Smyth, Wyoming Public Employees' Association, would like to see the study bridge efforts with employee education. He believes data integration between the executive and legislative branches is a good idea. With limited funding and time, the Subcommittee should limit the scope of its study and seek on-going funding to study those issues related to the total compensation package not studied this interim. He expressed his appreciation for the Legislature's changes to the State Employees' and Officials' Group Insurance Program in the recent legislative session.
Committee Discussion/Finalization of RFP
Chairman Case suggested the Subcommittee could narrow the scope of the RFP by eliminating ancillary issues, except possibly for the policy on sick leave and add integration with the Governor's efforts on building a database.
Representative Nicholas would like a subcommittee formed to work with the Governor's Office to ensure there is no duplication of efforts and to ensure the two projects do not conflict.
Senator Devin requested that the Subcommittee review data to determine if Dr. Gardner's statement about the pay-to-benefits ratio for state employees is still a concern. That information is necessary to understand the state benefit package in relation to compensation for state employees and where the Legislature may want to go to address concerns that may be raised by the information.
Senator Massie agreed with Chairman Case that the Subcommittee may be able to study retirement benefits without use of a consultant.
Chairman Case appointed Representative Nicholas, as Chairman, and Representative Meuli to a subcommittee to coordinate with the Governor's Office on development of an integrated database.
Chairman Case appointed himself, Senators Devin, Massie and Schiffer and Representative Harvey to a subcommittee to refine the RFP. Issues the subcommittee considered including in the RFP were issues related to: developing a consumer-based approach to state health insurance; sick leave; getting a baseline for health care utilization under the state health insurance program prior to the change in contribution levels authorized this year; and, a comparison of the pay-to-benefits ratio for state employees to establish balance in the system. Some of this information may be obtainable from DA&I. Mr. Dykeman advised he may be able to obtain the pay-to-benefit ratio for public sector employees in Wyoming and some other states, but he probably can not obtain similar information for private sector employees.
The Subcommittee established priorities for the RFP to include in the following order:
Chairman Case indicated he would like to have the RFP finalized and sent out for the Subcommittee to be voted upon by e-mail or telephone by April 25, 2003. The Subcommittee would tentatively meet in Casper on May 12, 2003, to consider selection of a consultant to assist with portions of the study.
There being no further business, Chairman Case adjourned the meeting at 4:35 p.m.
Respectfully submitted,
Senator Cale Case, Chairman