Minutes of the Compensation & Benefits Committee

Thursday, June 11, 1998

Members present: Tommy Brickhouse (Chair), Betty Meehan-Black, Bettye Jones

Members absent: Martha Barbour, Michael Brady, Lucille Brooks, Phil Hearne, Dee Dee Massey

Guest: Nora Robbins, Senior Director of Human Resources Services

Nora Robbins of Human Resources discussed the North Carolina Teachers' and State Employees' Comprehensive Major Medical Plan. It is possible that this plan will increase in cost by 1999. Sixty percent of Employees belong to the State Health Plan, and this number is decreasing every year. Conversely, HMO enrollments are increasing yearly, since a larger percentage of younger Employees are joining. This trend leaves older and sicker people in the Comprehensive Health Plan.

Claim Analysis of the Comprehensive Health Plan (6/96 to 6/97)

Total Hospital Inpatient claims showed a decrease in 1997.

Total Outpatient claims increased.

There was an increase in Physicians' Office/Home Care especially prescriptions.

The increase in demand and availability of new drugs and office visits led to an increase in claims for 1996-97.

The number of retirees is growing proportion to the number of active Employees.

Claims from 3/31/97 to 3/31/98 showed a 14% increase, overall a 2% increase in nine months. Changes being seen now are preliminary.

Rates for family coverage will go up. North Carolina is unique in providing employee-only coverage.

In comparison with other employers in BCBSNC, the State had a greater proportion of employees in the 45-54 age range and a smaller proportion in the 25-34 age range in 1997.

For two consecutive years, the State's active group proportion of members in the 35-44 age group declined, while its proportion of members in the 45-54 and 55-64 age groups increased.

This decline was due primarily to the migration of its members from its traditional CMM coverage to various HMOs.

The proportion of males and females in the active group did not change between FY1996 and FY1997.

The comparison to other BCBSNC groups also remained the same with the active population consisting of a greater proportion of females and fewer males than other BCBSNC groups. This is important because women tend to use more health care services.

Admission to hospitals are below other groups. The number of days declined from 4.4 to 4 days and the cost per day declined.

Outpatient care was the same as other groups.

Emergency room care was stable below the state norm.

Ambulatory remains stable, slightly above the state norm.

Average charge outpatient and hospital increased slightly.

Charge for emergency room increased above all other plans.

Ambulatory Surgery decreased slightly, stable for the past 5 years.

Office Visits were greater than any other year, other groups were lower. Charges for visits were $1 above average.

The minutes of the May 14, 1998 meeting were approved, with the following corrections: Members present should read Betty Meehan-Black, and the last sentence of the first paragraph should read Betty Meehan-Black instead of Betty White.

Next meeting will be on July 9, 1998 at 11 a.m.

Respectfully submitted,

Bettye Jones

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