[OEBB_alltopic] 2012-2013 OEBB Comparability Assessment

[OEBB information]

Our records indicate that your district, or an employee group within
your district, last applied for a comparability assessment in 2010.
Oregon Administrative Rule 111-020-0001(3) requires Provisional
Non-Subject Districts to submit an application requesting to be excluded
from participating in the OEBB benefits program by May 31 at least once
every two years.  

 

The policy, application and summary of enrollment and premium form used
for comparability assessments can be found at:
(http://www.oregon.gov/OHA/OEBB/entity/eeForms.shtml#Comparability_Asses
sment
<http://www.oregon.gov/OHA/OEBB/entity/docs/Forms/ComparabilityPolicyAnd
Procedure_rev_May2012.pdf> )  You will note that the definitions of
comparable plan design and cost remain the same as we have used in the
past.  We are in the process of revising the policy language relating to
when a district or employee group moving to the OEBB benefits program
must join the program in the event OEBB meets the comparability
requirement.  The current policy would require this move on October 1 of
the year OEBB met the comparability requirement.  However, our past
practice has been to acknowledge the plan year used by the specific
entity or group and base the comparability assessment on the proposed
rates for that specific plan year versus calculating estimated rates by
applying a trend factor to the entity's current rates.

 

We will be asking each entity to identify whether broker and consultant
fees and/or commission amounts are included in the rates submitted for
the upcoming plan year.  Those costs are included in OEBB's rates, but
we understand that these can sometimes be a separate cost for entities
and should be factored in during the cost comparability assessment.  One
other change we will be making as a result of conversations with the
advisory group formed to discuss some previously proposed changes to the
comparability definitions and methodology is to request each entity
provide information on any rate "buy down" activities using reserves or
funding received from the Early Retiree Reimbursement Program (ERRP).
We will send more details on how we propose to consider this information
in the comparability assessment for your review and comment.  However,
even if this is not used as a factor in the assessment itself, it will
increase the transparency of this process.  

 

We still request that each entity wanting to remain outside of OEBB
submit the Comparability Application by May 31, 2012. However, the due
date for the benefit plan handbooks and summaries and the Summary of
Enrollment and Premium Rates form will depend on the plan year used by
the entity or employee group as follows:

 

Entities with plan years of:

 

*         July - June must submit the benefit handbooks/summaries and
Summary of Enrollment and Premium Rates form along with the application;


 

*         October - September must submit the benefit
handbooks/summaries and Summary of Enrollment and Premium Rates form by
June 30, 2012;

 

*         January - December must submit the benefit handbooks/summaries
and Summary of Enrollment and Premium Rates form by September 30, 2012;
and

 

*         February - January must submit the benefit handbooks/summaries
and Summary of Enrollment and Premium Rates form by October 31, 2012.

 

Once the required information is received, OEBB will conduct a
comparability assessment on the medical, dental and vision plans to be
offered in the upcoming plan year to determine whether OEBB is able to
meet the comparability requirements.  You will receive a report of the
results within 45 days following submission of all of the required
information.

 

If you have any questions, please contact Glenn Baly at
glenn.w.baly at state.or.us or 503-378-4960.   

 

Thanks for your assistance.

 

Denise Hall

Deputy Administrator

Oregon Educators Benefit Board

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