Northern Region Chapter Meeting
Wednesday, April 15, 2009

Northern Region Chair Charlie Gallagher convened the meeting at 12:45 pm in the Jade Room at the Princess Hotel. Mary Zalar recorded minutes. There were 22 members present at the meeting in addition to the featured speaker Neil Davis, Senator Joe Paskvan, and his legislative aide, Mr. Jeff Stepp.

Charlie Gallagher welcomed everyone and made several announcements:

• Charlie reiterated Freda Miller’s statement that if it hadn’t been for the RPEA lawsuit, retiree benefits would have been whittled away substantially. The ruling in the lawsuit provided a good foundation for the proper interpretation of our entitlement, and for Freda's work as Benefits Manager.
• The RPEA Executive Board is planning to send out a newsletter focused on medical issues.
• The next Chapter meeting will be September 16th and may focus on long term care insurance.
• The Executive Board is looking for attorneys in our membership that could help look at specific issues such as whether the State should pay retirees’ Medicare premiums.

Old Business

Treasurer Alfred Frey’s Report:

Legislative Committee:

• Bob Grove reported that legislation introduced to return the State to a Defined Benefit retirement program would not advance to the floor this session. The Electronic Medical Records legislation was assigned to only one committee so it will move more quickly.
• Bob thanked Doris Robbins for participating in many legislative meetings, staying on top of what is happening, and writing letters to legislators and RPEA members.
• Passing the Electronic Records Bill provides positive momentum toward a more cost-effective health care system.
• RPEA and the Alaska Pension Coalition continue work to gain momentum for legislation that would return the State to a Defined Benefit system.

Medical Issues Report:

Mary Zalar reported that the Medical Issues Committee is focusing on the process of selecting a new Third Party Administrator for our health care plan. Sam Trivette has been working very hard to review Wells Fargo’s bid proposal and their contract with the State. He has been in contact with Director Pat Shier and Wells Fargo representatives and trying to get more detailed information about the transition. Some of the key developments are:

• The Intent to Award the TPA Contract to Wells Fargo Insurance Services was issued by the State on 3-6-09.
• There was a protest period following the issuance of the Intent to Award, and two of the bidders did protest. Aetna has not continued the protest, but Premera filed a complaint for injunctive relief in Superior Court as well as an administrative appeal to stop the implementation of the contract.
• The State signed the $43,902,146 three-year contract with Wells Fargo on 4-12-09. The contract begins 7-1-09. The contract is nine pages long and refers back to the original Request for Proposal and six amendments.
• Unlike previous TPA Health Care Contracts, Wells Fargo is NOT a health insurance company, so it subcontracts the work required under the TPA.
• RPEA has received a fairly detailed timeline from Director Shier that provides deadlines for all the tasks necessary in transitioning to a new TPA. This timeline states that a Welcome Kit and new ID cards will be mailed to retirees on approximately June 18th.

New Business

Ballots were collected for the annual election of Chapter officers.

Featured Speaker

Charlie introduced Dr. T. Neil Davis, author and former Director of the Geophyiscal Institute. Neil’s book, Mired in the Health Care Morass, was published in 2007 and discusses his experiences dealing with our health care system as he helped his uninsured daughter. Neil’s presentation gave a very sobering view of our health care system and possibility of significant reform.

Prior to adjourning, the results of the Chapter election were announced. Darlene Pasley stated that 19 ballots were voted and there was a unanimous vote to re-elect the following officers:

The meeting adjourned at 2:00 pm.