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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> HALL Denise * OEBB <br><b>Sent:</b> Friday, April 27, 2012 11:49 AM<br><b>To:</b> 'OEBBSUPERINFO@listsmart.osl.state.or.us'; 'OEBBBUSMAN@listsmart.osl.state.or.us'<br><b>Cc:</b> OEBB.board@state.or.us<br><b>Subject:</b> OEBB Approves Plans, Designs and Rates for 2012-13<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Dear Superintendents, Business Managers and Benefit Representatives:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>At its April 26<sup>th</sup> 2012 Board meeting, the OEBB board voted on plan design and rate renewals for the upcoming 2012-13 plan year. We wanted to share the information with you as soon as possible to allow you to consider the changes and rates in your budget and collective bargaining discussions.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The estimated overall increase for medical plan rates for the 2012-13 plan year is 7.1 percent. Rates for ODS medical plans 3, 5, 6, 7, 8 and 9 will each increase by about 7.49 percent and ODS medical plan 4 will increase by 3.99 percent. Kaiser plan 1 rates will see an increase of 5.94 percent, while Kaiser plan 1A will increase by only 4.70 percent.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>As of October 1, 2012, Providence Health Plan plans 2 and 2A will no longer be available under the OEBB benefits program. As you may know, the two Providence medical plans have experienced significant rate increases in each of the past three years. The Providence plans have offered rich benefit designs and have experienced higher than anticipated utilization during each of the four plans years. Providence did not believe, and OEBB agreed, that continuing to offer these two plans was in the best interest of OEBB members and felt that the plans did not represent sustainable options. Providence has been an excellent partner and has brought a lot of value to the OEBB benefits program. Employees and early retirees who are enrolled in one of the two Providence medical plans at this time will need to select another medical plan option during the 2012 open enrollment period, but will be able to continue care with their current providers if selecting one of the ODS medical plan options.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Another change that was approved for ODS medical plans 3 through 8 is to attach the same pharmacy option to all plans. In the past, employee groups could select from three pharmacy plan options. As of October 1, 2012, all ODS plans other than plan 9 will offer the pharmacy benefits available under the current plan B option. The Board also approved the addition of a “value tier” on the pharmacy coverage under ODS Medical Plan 9. This will help those enrolled in Plan 9 who have certain chronic conditions to receive a benefit toward medications used to manage those chronic conditions prior to meeting the deductible under this high-deductible, consumer-driven health plan. All other medications will be handled the same way as they are today.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Rates for the ODS vision plans will increase by 7.49 percent. Kaiser will not increase the rate for the Kaiser vision plan offering. There are no plan design changes to any of the vision plans.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>OEBB moved to include orthodontia coverage under all but one ODS dental plan offering beginning October 1, 2012. The decision to include orthodontia coverage in the dental plans was due in part to an earlier Board decision to remove limitations on the number of plans each employee group will now be able to offer. The Board understands that allowing more choice at the employee level could be an additional administrative burden on entities as well as employees trying to make the right choices. In addition, allowing an individual to decide whether to enroll in an orthodontia plan without regard to the dental plan coverage would have resulted in adverse selection and unsustainable rates for an orthodontia benefit. OEBB will still offer one dental plan without orthodontia coverage for those employees who do not wish to have orthodontia coverage and/or who want a lower-cost option that still provides preventive dental care and a comprehensive level of coverage for themselves and their families.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Even with the move to include orthodontia coverage in most of the dental plans, under the ODS dental plans, the largest increase will be just under 7.5 percent with many employees realizing a decrease of around 0.50 percent. Employees currently under ODS Dental Plan 6 with orthodontia who have no need for orthodontia coverage and remain on Plan 6 will see a decrease in premiums of nearly 10.90 percent. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Another change under the dental program is that employees who want to enroll in the Kaiser dental plan can do so without having a Kaiser medical plan. This has been requested by employees in the past and the Board took those requests into consideration when deciding to remove that requirement. Orthodontia coverage will be included in the Kaiser dental plan beginning October 1, 2012, as well. Kaiser dental plan rates will actually decrease for the 2012-13 plan year by as much as 12.61 percent for those individuals currently on a Kaiser plan with orthodontia coverage. All other Kaiser dental plan enrollees will see a decrease of 7 percent and have an orthodontia benefit available to them.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The Willamette Dental option has always included an orthodontia benefit and will continue to do so. There is no rate increase on the Willamette Dental plan.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The Board also considered and approved the rate renewal proposed for coverages available through The Standard. The Basic Life Insurance rates will increase by 5 percent on October 1, 2012, but will still remain more than seven cents per $1,000 in coverage lower than the average pre-OEBB rate for basic life coverage. Optional employee, spouse and child life rates will not change, nor with Basic and Optional accidental death and dismemberment rates. Rates for the short-term disability options will increase by 2 percent, and the rates for the long-term disability options will increase by 5 percent – both still lower than the average pre-OEBB rates in 2008.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The OEBB administrative fee will increase slightly for the 2012-13 plan year. The Board had decreased its administrative fee from 0.95 percent to 0.85 percent for the 2011-12 plan year. The administrative fee is based on the overall medical, dental and vision premiums collected throughout the year. With the larger than anticipated movement to lower-cost medical plans for 2011-12 and the expectation that this trend may continue, as of October 1, 2012, the fee will increase to 0.90 percent. The OEBB administrative fee is authorized by ORS 243.880 and may not exceed 2 percent. It is the only revenue stream available to fund the Board’s operating expenses.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>OEBB staff is working to translate the renewal increases into actual premium rates at this time. We anticipate posting the new rates on our website on or around May 1 and will be prepared to talk about the plan changes and rate renewals during the insurance committee meetings scheduled for the month of May and into early June.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>I hope this information is helpful to you and your coworkers and peers. The document presented to the Board during the rate renewal discussion is now posted on the OEBB website at: <span style='color:#1F497D'><a href="http://www.oregon.gov/OHA/OEBB/docs/MeetingAttachments/2012/BoardHandoutA_042612.pdf">http://www.oregon.gov/OHA/OEBB/docs/MeetingAttachments/2012/BoardHandoutA_042612.pdf</a>. </span>We’ve also posted the criteria and details relating to the addition of bariatric surgery as a covered benefit under both the ODS and Kaiser medical plans effective October 1, 2012, at: </span><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span class=MsoHyperlink><span style='font-size:10.0pt'><a href="http://www.oregon.gov/OHA/OEBB/docs/MeetingAttachments/2012/BariatricSurgeryCriteria.pdf"><span style='font-family:"Arial","sans-serif"'>http://www.oregon.gov/OHA/OEBB/docs/MeetingAttachments/2012/BariatricSurgeryCriteria.pdf</span></a>.</span> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>If you have any questions, concerns, suggestions, or comments regarding these Board decisions, please send them to: <a href="mailto:OEBB.Board@state.or.us">OEBB.Board@state.or.us</a> or feel free to give me at call at 503-378-5133. Thank you. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Sincerely,</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><b><span style='font-size:14.0pt;font-family:"Brush Script MT";color:navy'>Denise L. Hall<o:p></o:p></span></b></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Denise L. Hall, Deputy Administrator</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Oregon Educators Benefit Board</span><o:p></o:p></p><p class=MsoNormal><a href="http://egov.oregon.gov/DAS/OEBB"><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>http://egov.oregon.gov/OHA/OEBB</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>(503) 378-5133</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>(503) 378-5832 FAX</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><b><span style='font-family:"Book Antiqua","serif";color:red'>OEBB encourages all members to stay healthy and be happy!!!! Pass it on..... </span></b><a href="http://www.oregon.gov/OHA/OEBB/WellLinks.shtml"><b><span style='font-family:"Book Antiqua","serif"'>http://www.oregon.gov/OHA/OEBB/WellLinks.shtml</span></b></a><b><span style='font-family:"Book Antiqua","serif";color:red'> </span></b><b><span style='font-size:10.0pt;font-family:"Book Antiqua","serif";color:red'> </span></b><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Book Antiqua","serif"'>*****CONFIDENTIALITY NOTICE*****<br><br>This e-mail may contain information that is privileged, confidential, or otherwise exempt from disclosure under applicable law. If you are not the addressee or it appears from the context or otherwise that you have received this e-mail in error, please advise me immediately by reply e-mail, keep the contents confidential, and immediately delete the message and any attachments from your system. <br><br>************************************</span> <span style='font-size:10.0pt;font-family:"Book Antiqua","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Book Antiqua","serif"'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>