University of South Alabama
Fringe Benefits Committee – Meeting Minutes
Date:
Time:
Place:
1
January 24, 2012
3:00 p.m.
HR Learning & Development Center
Members
Mr. M. Wayne Davis
Dr. Lanier S. Cauley
Dr. Thomas Chilton
Ms. Janice Collins
Mr. Charles Dunnam
Ms. Amy Fleet
Mr. Ronnie Hodges
Mr. Gregory Howard
Dr. David Johnson
Mr. Andy Lightbourne
Mr. Tom Meyer
Dr. Vaughn Millner
Mr. John Pannelli
Ms. Kelly Peters
Dr. Victoria Rivizzigno
Ms. Barbara Shirvanian
Dr. John Smith
Dr. J. Allan Tucker
Dr. David Turnipseed
Ms. Carolyn Williams
Chairman - Financial Affairs
Mechanical Engineering
College of Education
Radiology - USAMC
Maintenance Department
Marketing & E-Commerce
Pharmacy - CWH
Security - CWH
Academic Affairs
Computer Services Center
President, Faculty Senate
Continuing Education
COM Business Office
Business Office
College of Arts & Sciences
Student Affairs
Student Affairs/Special Assistant to President
Pathology - USAMC
Chair, Faculty/Senate Fringe Benefits Committee
Medical Surgical - USAMC
Present
Present
Absent
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Present
Absent
Present
Present
Absent
Others Present
Ms. Pamela Henderson, Assistant Vice President Human Resources
Mr. Gerald Gattis, Associate Director of Human Resources
Ms. Tina Stalmach, Assistant HR Manager, Employee Benefits
Mr. Ed Kahalley, Jr., Benefits Consultant, Secretary to the Committee
Mr. John Lowden and Ms. Lori Schneider, Blue Cross Blue Shield
Call to Order & Meeting Minutes
Chairman Davis called the meeting to order and asked for approval of the September 20, 2011,
meeting minutes. A motion was made, seconded, and the vote unanimous to dispense with the
reading of the meeting minutes and approve same as prepared by the Secretary.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 1/24/2012
2
Chairman Davis welcomed Mr. Ronnie Hodges, Assistant Chief Pharmacist at Children’s and
Women’s Hospital and Mr. Gregory Howard, Assistant Manager, Safety and Security at
Children’s and Women’s Hospital, both new members of the Committee.
Experience Report
The experience report for the year ended December 2011 was distributed. The Consultant stated
that the Plan ended the year with a deficit of $444,696 and a reserve of $5,260,166. The
University’s contribution covered 74% of the cost compared to the target of 75%. Income from
employees who do not qualify for the wellness incentive totaled $262,350. He noted that the
Healthcare Management firm contributed $2.8 million of revenue and had total expenses of $2.7
million for a 96% paid/loss ratio. The University contributed $7.5 million for qualified retirees
covered under the PEEHIP retiree health plan.
The Plan’s USA Health System Providers network accounted for 36% of the benefits paid for
services provided. The Blue Cross Blue Shield provider fee schedules reduced billed charges for
a savings of 55%.
The Consultant completed his review of the year-end report.
USA Health & Dental Plan Audit
Mr. Gattis stated that the University had decided to audit health and prescription drug claims
paid. He stated that the first audit would be to ensure accuracy of benefit payments by the claims
administrator. The second audit will be a dependent eligibility audit.
Blue Cross Blue Shield Disease Management Program
Mr. John Lowden and Ms. Lori Schneider were in attendance to present information about the
disease management program. A report was distributed and Mr. Lowden explained the report to
the Committee. He stated that it is accepted that 20% of the population accounts for 80% of the
benefit cost. With that in mind it is important to help with this population’s medical conditions
and outcomes in an effort to reduce cost. The University spent $4.7 million on only 20
individuals last year. He stated that the Blue Cross Blue Shield disease management program
concentrates on five specific diseases of which the outcomes can be improved. These include
asthma, coronary artery disease, congestive heart failure, chronic obstructive pulmonary disease
and diabetes. Individuals within the population are identified through claims information, self
referral and the health risk assessment program. Once identified, the proper level of intervention
is applied to each case. The outreach program is passive but effective.
He stated that the Blue Cross Blue Shield website provides a great deal of information and
assistance to members. The information includes a health risk assessment and educational
information on disease management and prescription drugs.
University of South Alabama
Fringe Benefits Committee – Meeting Minutes 1/24/2012
3
Ms. Schneider stated that one of the best programs and most cost effective is the Baby Yourself,
for pregnancy. She stated that those who join in the first trimester of pregnancy and remain with
the program to birth will likely not experience premature births. She stated that the University
might want to look into an incentive for this program. Ms. Henderson recommended displaying
the Baby Yourself Baskets at all three HR Offices.
Adjourn:
There being no other business to come before the Fringe Benefits Committee, the meeting was
adjourned at 4:10 p.m.