Chapter News
Meeting Minutes: 11/17/2011
Northern Region Vice-President Charlie Gallagher convened the meeting 12:30 pm. Susan Davis recorded the minutes for Mary Zalar. There were 26 members and 5 guests present.
Welcome and Announcements
Charlie Gallagher welcomed everyone to the 5th annual Lunch with the Legislators. The members signed in and at each table there was a question form. Each table could prepare three questions to ask the legislators present.
The next meeting will be January 19, 2012. The quest speakers will be Vicki Wilson and the staff social worker from the Fairbanks Pioneer’s Home. They will address what is happening there, when we should apply, and have been asked to address how they use Long-Term Care and other funding.
Old Business
At the September 21, 2011 ARM board meeting the following was covered:
- Director Puckett of Retirement and Benefits was thanked for allowing the RPEA Medical Committee time at the Health Care Provider quarterly meeting.
- Becky Hultberg, the newly appointed Commissioner of Administration, was thanked for her gracious letter in response to RPEA President Doll’s letter suggesting she support the US Senate Bill allowing importation of less expensive drugs to save our pension millions of dollars.
- The ARM Board’s Finance Committee was thanked and congratulated for their sterling achievement of a 21% FY11 return on investments. (The Northern Region’s Primary issue is the underfunded liability, which the ARM Board discussed on day 1.)
- The Interior Delegation and the Legislature were thanked for the special hearing on SB 121 on October 13th.
- Assistant Commissioner Barnhill was reminded, what he seems to have forgotten, like 7 other states dealing with underfunded pensions, Alaska Retirees had already forfeited their full inflation proofing beginning in 2002. The cost to a 2002 average pensioner, 55, with an average $19K pension, was about 20% of their earning power by 2012.
- Finally, Alaska Retirement and Benefits has signed an extension of the AlaskaCare contract for 2 years. This was applauded, since it would mean no disruption to services, but now we find out WFHC has sold-out (bundled-out) to a company called Health Smart of Texas. When Charlie notified membership of this on Monday he told membership there should be no problems but heard back from a member that Health Smart has a lot of baggage including recent lawsuits against schools in Lubbock and Brownsville regarding overcharging or something. There may also be an FBI investigation on-going and the owner was recently separated from the company; 20 minutes of Googling Health Smart and its owner, Ted Parker was astonishing.
- Three immediate concerns come to mind:
- It is hard to believe WFHC did not know about Health Smart when renegotiating the health care extension.
- It is difficult to believe WFHC did not inform the SOA about the acquisition before the extension was granted. And, if they did why didn’t the SOA question these concerns?
- How will these unexpected concerns affect Alaska and Alaskan Retirees?
Years ago we stated AlaskaCare ought to be run by Alaskan employees, in Alaska for Alaskans, due to the $49 M management cost to our pension. Now we contract out to a West Virginia managed firm with 600 employees there and a few in Alaska. Now it is a bundled company, with an unfortunate past, run out of Dallas. Can’t Welfare and Pension Trust run this from Anchorage? This is being picked-up by our revived Medical Committee.
Medical Issues Committee
Mary Zalar submitted the following written report.
On November 8, the Medical Issues Committee participated in the quarterly teleconferenced meeting with the Division of Retirement and Benefits, Wells Fargo Insurance Services, and representatives of the subcontractors that administer our health benefits. Two committee members attended this meeting in Anchorage in person. Our committee continues to be very appreciative of the dialogue we have with Retirement and Benefits and Wells Fargo. We receive detailed information about our health plan, AlaskaCare, and our many questions are thoughtfully discussed and answered.
As mentioned in Charlie's email to members, Texas-based Health Smart Holdings Inc is in the process of acquiring Wells Fargo Third Party Administrators Inc. A formal announcement to AlaskaCare members will be made when the legal process is concluded. During our teleconferenced meeting, Wells Fargo and Health Smart representatives answered a number of questions from RPEA. Our concerns are continuity and consistency of service in administering our benefits. We were told that Health Smart will retain employees that currently work with AlaskaCare so the transition should be seamless. We neglected to ask if Health Smart will continue to work with subcontractors including Costco Pharmacy, Envision, Univita, etc. We hope so.
AlaskaCare is now using the Fair Health database for determining Reasonable and Customary charges for medical services. Fair Health is an independent, not-for-profit organization that also assists consumers in understanding the out-of-network reimbursement system and help consumers estimate the out-of-pocket costs associated with non-network providers. Their website, www.fairhealthconsumer.org, has an easy-to-use cost estimator tool as well as educational articles and videos.
The Medical Issues Committee ongoing project is research on the state Long Term Care insurance plans. We will have more to report in the new year.
Legislative Committee
Doris Robbins, Ron Johnson and Bob Grove reported:
Bob reported he joined the committee to monitor what is happening in the state, especially those impacting RPEA members. He would like to hear from members about any concerns they have and encouraged those interested to join the RPEA State Legislative Committee teleconference. They address state and federal issues effecting seniors.
Doris also encouraged members to join the state-wide Legislative Committee teleconference scheduled for tomorrow, November 18, at 10 AM. She indicated they tried to keep the meeting to one hour.
Ron indicated the unfunded liability to the pension fund is still a major issue and has continued to contact legislators regarding SB 121.
Treasurers Report
Frank Abegg, NR treasurer, reported:
Our current balance is $1,633; more than the balance of our last report and this time last year.
Legislative Guests
Representative Scott Kawasaki, Representative Bob Miller, and Senator Joe Thomas were present along with Kim Van Wyhe for Senator Paskvan and Jean Trainor for Representative David Guttenberg.
RPEA Member Questions
Question 1: What is your top concern for Alaska and for Fairbanks?
Senator Thomas: Energy -- although the high cost of oil is good for the state budget cost of gas and energy are hitting businesses and consumers hard. Anchorage has natural gas so has not been as responsive as it could be in joining other legislators in dealing with the high cost of energy. The Bullet Line is currently looking at 2018 or 2019 completion date which is too far away to be assistance in the near future. There will also be a bill introduced looking to help pay-off the unfunded pension debt. He did mention the need for a natural gas pipeline between Anchorage and Fairbanks to get natural gas to Fairbanks.
Representative Miller: They all have the same concern: energy. The issues that affect the state as a whole also affect Fairbanks…mainly energy. He also stated that although the unfunded liability, $8-$10 B, in the pension fund is an issue it isn’t immediately due and we have time to work on a plan for that, energy is an immediate issue. There will be a bill submitted soon to help protect state employee in the future.
Representative Kawasaki: Has the same concern: energy. The legislature has put money into education but a lot of that has gone to pay for the increased energy costs: electric costs have doubled over the last year. He also sees some relief coming from Healy Coal 2 and a wind farm coming in the next couple of years. He said Alaska has a lot of resources right now but needs a strong legislature to push state administration.
Question 2: What would be an important issue for seniors in the coming year?
Representative Kawasaki: The need to look at preventative care for seniors to be introduced. The legislature did assist with a new Clinic Complex to provide medical services to underserved people in Anchorage. This mainly benefits seniors who were having trouble finding Medicare providers or during the Medicare gap.
Senator Thomas: Expansions needs for Pioneer Homes are coming up and will need funding.
Question 3: What happened to the Natural Gas in the Pipeline interest of a few years ago?
Senator Thomas: It is possible, logistically, to send natural gas in the oil pipeline, but oil companies are not due to the lower value of natural gas compared to the cost of oil: less profit for the natural gas for oil companies. Right now money from oil companies is going to Australia for their oil development, $120 B. When Prudhoe was developed the state gave away too much control to the oil companies which means we do not have control of what they do with their resources and development and we can’t do it due to the way leases are set-up. Even the roads are private.
Representative Kawasaki: There have been talks with the oil companies, especially about the possibility of sending heavy oil through the pipeline. They just need to get the oil companies interested in delivery of natural gas.
Question 4: The infrastructure of energy needs to be changed; specifically directed at the Delta Wind Farm and getting their energy to Fairbanks.
Representative Miller: He discusses the Wind Farm in Delta and would like to see something worked out to get energy from there to Fairbanks, even if it does cost 1 to 2 cents more a kilowatt that what is currently being charged by GVEA. He feels like we should negotiate and get a price locked-in. The Delta Wind Farm is projected to be able to produce enough energy to meet what all of Fairbanks is currently using. He emphasized the need to continue exploration of renewable energy, including the Delta Wind Farm and Eva Creek.
Question 4: Whether we can get representative input into Alaska Care in the future?
Senator Thomas: Is doubtful the state would expand any type of increased consumer input or committee into Alaska Care benefits or services or Long Term Care, especially with them having a third party administrator.
Representative Miller: Members need to call their representatives with concerns and talk to other people they know and have them call their legislators. Give input and apply pressure, never diminish how much we can do and how much power we have.
Senator Thomas: Make appointments with your state legislators and talk to them about your top 5 issues and ask them what they are going to do about those issues. Make them hear and think about your concerns.
Representative Miller: He is new and needs input and information from us. Make those contacts.
Both encouraged RPEA and individual members to setting-up meetings with legislators in the next 2 months before the new session and talk to them in person; especially those who did not come to the meeting today.
Jean Trainor, representing David Guttenberg, indicated Representative Guttenberg could not attend the meeting due to boiler problems but she would share RPEA questions and concerns.
Kim Van Wyhe, representing Senator Paskvan, indicated Senator Paskvan is on the Labor and Commerce Committee and is interested in HB 121. He is an active Attorney and is in Court today or he would have come.
The meeting was adjourned at 2:15pm.
If you have any comments or ideas please email me at
.
The best to you.
Charlie Gallagher
The NR Spring – September Luncheon Speakers
| January 19th |
Director of the Fairbanks Pioneers Home, Vickie Wilson. |
| February 16th |
Attorney, Mr. Michael Cavaliere, Estate and Tax Planning. |
March 15th,
The Ides |
Mr. Frank Abegg, Costing our Energy. |
| April 19th |
Ourselves. Each year we discuss issues of concern to us and plan. |
| May 17th |
With The Retired Fairbanks Teachers. State Senators talk about the session and their plans. |
| September 20th |
The activity and role of RPEA’s Legislative Committee: Chairman Ted Moninski, Attorney at Law. |
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