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Bruce C. McKinney November 10, 2007

Bruce C. McKinney November 10, 2007. They do not set rates... They did not initiate the two initiatives Smoking Obesity So my criticisms of

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 The Plan also underestimated total administrative expenses by 36.3 million because the Plan failed to estimate the PPO administrative expenses accurately. The majority (85%) of the Plan’s PPO administrative expenses consists of BCBSNC costs. The plan reimburses BCBSNC its cost for administering the PPO plan plus a profit percentage. However, the State Health Plan lacked BCBSNC cost data on which to base the PPO administrative expense projection. Former plan management said they did not provide the actuary the BCBSNC due to confidentiality. As a result, the actuary did not have the data needed to produce accurate expenses (State Auditor’s Report, April 2009).

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Page 1: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

Bruce C. McKinneyNovember 10, 2007

Page 2: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

They do not set rates . . . They did not initiate the two initiatives

Smoking Obesity

So my criticisms of BCBSNC in the media were not totally accurate

However, premiums that the SHP charges members are based on estimates of BCBSNC administrative costs

And here is a big problem . . .

Page 3: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

The Plan also underestimated total administrative expenses by 36.3 million because the Plan failed to estimate the PPO administrative expenses accurately. The majority (85%) of the Plan’s PPO administrative expenses consists of BCBSNC costs. The plan reimburses BCBSNC its cost for administering the PPO plan plus a profit percentage. However, the State Health Plan lacked BCBSNC cost data on which to base the PPO administrative expense projection. Former plan management said they did not provide the actuary the BCBSNC due to confidentiality. As a result, the actuary did not have the data needed to produce accurate expenses (State Auditor’s Report, April 2009).

Page 4: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

Therefore, BCBSNC does not have to provide ANY accounting of the money they receive from us

If an audit is requested: BCBSNC selects the auditor The results of the audit can only be seen by

BCBSNC Do we have a Cadillac or an Edsel? (handout)

Maybe a ford Focus!

Page 5: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

1. Why are our health care premiums some of the highest in the nation for a plan that is inferior to plans in many states?

2. Why do we only have one choice—Blue Cross/Blue Shield—when employees of other have several health care options (most notably South Carolina with FOURoptions)?

3. Why do we use Blue Cross/Blue Shield as our health care administrator? It certainly can’t be a cost effective organization when it pays its CEO more than the CEOs of international companies like United Parcel Service and Whirpool. It also has used its funding to defeat health care reform in the United States.

4. Who was responsible for allowing BCBSNC to sign a contract with the State Health Plan in which there can be no accountability or transparency for the administrative costs BCBSNC charges the State Health Plan?

No answers yet (after almost three weeks . I guess they are still formulating their response.

Page 6: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

October 29 Meeting

Faculty Assembly Motions

Change?

Page 7: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

Faculty Handbook Update

Advancement Committee and Policy for Grants/Gifts

Conservative Hawk and ITSD “raises”

Page 8: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

From one-time money, we are receiving the money we requested to cover journal inflation in the amount of $200,000 this year and $300,000 next year.

Unfortunately, we couldn’t predict that we would get this funding, and we had to let our primary serials vendor (Ebsco) know by October 1 what we wanted to cancel for the 2010 calendar year.

We completed the process of cancelling $200,000. Now we have to figure out from the things we selected for cancellation what we want to add back. We will involve faculty in some of these decisions, just as we did about what to cancel. If titles were considered of minimal use, we can use the funds to get something new that the departments want.

Page 9: Bruce C. McKinney November 10, 2007.  They do not set rates...  They did not initiate the two initiatives  Smoking  Obesity  So my criticisms of

Book Project Funds: $48,517. These are the projects for focused collection development. With this amount and the $10,000 we received from the Friends of UNCW, the book budget net reduction is $11,483 instead of $70,000. However, the $70,000 was a permanent cut, and this is one-time money, so we’ll have to keep fighting to get it back in the budget next year.

Library Committee