OPEA

A joint legislative committee charged with reviewing state employee benefits and insurance met at the Capitol, Thursday, September 9. The committee heard presentations from the Employee Benefits Council (EBC) and the Oklahoma State Education and Employees Group Insurance Board (OSEEGIB), which is the agency responsible for the administration of HealthChoice.

The committee members attending were Represenatives Jason Murphey, Charles Key and Senators Bill Brown and Charlie Laster. Absent were Representative Lewis Moore and Senator Cliff Aldridge.

OSEEGIB’s presentation focused on recent changes to the state’s self-funded plan, HealthChoice, including the lowering of co-pays from $50 to $30 as well as the addition of no-charge services such well-baby visits, flu shots, and routine vaccinations.

OSEEGIB also fielded questions from members regarding their administrative costs. Executive Director Frank Wilson, informed legislators the nationally recognized standard for loss ratios is between 74-85 percent. This means a company pays out about 74-85 cents in claims on every premium dollar received. Private insurance companies pay for administrative overhead and pocket the difference in profit. OSEEGIB’s loss ratio is and administrative costs are significantly below average at five percent administrative costs with 95 percent of all premiums used directly to provide a quality product to participants.

Legislative members expressed concerns about how the national health care policy would affect he plan. Wilson told the group that OSEEGIB would be making changes to the plan to maintain its “grandfathered” status. This allows plans to phase in reforms without being penalized.

The committee will continue to meet to discuss additional reforms in the next few months.