PEBB votes to change HEM model for 2013

Today PEBB (Public Employees' Benefit Board --- in Oregon) voted on plan design changes for the 2013 plan year and took action to change the Health Engagement Model (HEM). SEIU 503 President Linda Burgin and HEM Committee member Keary DeBeck testified at today’s PEBB meeting, calling on PEBB to adopt an incentive-based HEM model and to end the punitive surcharges.

SEIU PEBB representatives Rich Peppers and Paul McKenna led the labor representatives in a fight for a model that was strictly an incentive approach, but the management representatives blocked the proposal. After the incentive-only approach failed, management representative Tom Jovick proposed the following changes to HEM for 2013:

• Eliminate the opt-out surcharges
• Create a $17.50/month incentive for HEM participants ($35/month for couples)
• Increase the annual deductible for those who choose not to participate in HEM by $100

This motion passed with a vote of 5-3 with SEIU representatives voting “no.”

While we advocated for PEBB’s action to adopt an incentive model for HEM that reduces member healthcare costs and eliminates the opt-out surcharge, SEIU representatives could not support a package that retained a punitive component by increasing the deductible for members who choose not to participate in HEM.

PEBB also discussed plan design changes in light of the recently announced surplus. Rich Peppers moved to adopt a $1,000 per year out-of-pocket maximum for prescription drugs effective January 1, 2013, and the Board approved this motion. This plan design change is a much-needed improvement for members who are struggling with particularly high out-of-pocket costs for their medications.

We would like to thank our HEM committee members, Keary DeBeck, Nat Elder, Sabrina Freewynn, Wednesday Martin, and Shaun Parkman for their efforts on the Joint Labor-Management Committee to continue pushing PEBB to adopt an incentive-based model. In June, PEBB will discuss whether or not to increase the HEM requirements in 2013. Through our committee, we have been clear: PEBB should not increase HEM requirements in 2013.  

Even though PEBB did not adopt a purely incentive based-model, we appreciate that the model PEBB adopted for 2013 is better than today’s punitive surcharge model and we hope to continue to see PEBB improve the model over time.

In Unity,

Linda Burgin, President
Heather Conroy, Executive Director