22866
. (a) The board shall report to the Legislature and the
Director of Finance on or before November 1, 2016, and annually
thereafter, regarding the health benefits program. The report shall
include, but not be limited to the following:
(1) General overview of the health benefits program, including,
but not limited to, the following:
(A) Description of health plans and benefits provided, including
essential and nonessential benefits as required by state and federal
law, member expected out-of-pocket expenses, and actuarial value by
metal tier as defined by the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152).
(B) Geographic coverage.
(C) Historic enrollment information by basic and Medicare plans,
by state and contract agencies, by active and retired membership, and
by subscriber and dependent tier.
(D) Historic expenditures by basic and Medicare plans, by state
and contract agencies, by active and retired membership, and by
subscriber and dependent tier.
(2) Reconciliation of premium increases or decreases from the
prior plan year, and the reasons for those changes.
(A) Description of benefit design and benefit changes, including
prescription drug coverage, by plan. The description shall detail
whether benefit changes were required by statutory mandate, federal
law, or an exercise of the board's discretion, the costs or savings
of the benefit change, and the impact of how the changes fit into a
broader strategy.
(B) Discussion of risk.
(C) Description of medical trend changes in aggregate service
categories for each plan. The aggregate service categories used shall
include the standard categories of information collected by the
board, consisting of the following: inpatient, emergency room,
ambulatory surgery, office, ambulatory radiology, ambulatory lab,
mental health and substance abuse, other professional, prescriptions,
and all other service categories.
(D) Reconciliation of past year premiums against actual
enrollments, revenues, and accounts receivables.
(3) Overall member health as reflected by data on chronic
conditions.
(4) The impact of federal subsidies or contributions to the health
care of members, including Medicare Part A, Part B, Part C, or Part
D, low-income subsidies, or other federal program.
(5) The cost of benefits beyond Medicare contained in the board's
Medicare supplemental plans.
(6) A description of plan quality performance and member
satisfaction, including, but not limited to, the following:
(A) The Healthcare Effectiveness Data and Information Set,
referred to as HEDIS.
(B) The Medicare star rating for Medicare supplemental plans.
(C) The degree of satisfaction of members and annuitants with the
health benefit plans and with the quality of the care provided, to
the extent the board surveys participants.
(D) The level of accessibility to preferred providers for rural
members who do not have access to health maintenance organizations.
(E) Other applicable quality measurements collected by the board
as part of the board's health plan contracts.
(7) A description of risk assessment and risk mitigation policy
related to the board's self-funded and flex-funded plan offerings,
including, but not limited to the following:
(A) Reserve levels and their adequacy to mitigate plan risk.
(B) The expected change in reserve levels and the factors leading
to this change.
(C) Policies to reduce excess reserves or rebuild inadequate
reserves.
(D) Decisions to lower premiums with excess reserves.
(E) The use of reinsurance and other alternatives to maintaining
reserves.
(8) Description and reconciliation of administrative expenditures,
including, but not limited to, the following:
(A) Organization and staffing levels, including salaries, wages,
and benefits.
(B) Operating expenses and equipment expenditure items, including,
but not limited to, internal and external consulting and
intradepartmental transfers.
(C) Funding sources.
(D) Investment strategies, historic investment performance, and
expected investment returns of the Public Employees' Contingency
Reserve Fund and the Public Employees' Health Care Fund.
(9) Changes in strategic direction and major policy initiatives.
(b) A report submitted pursuant to subdivision (a) shall be
provided in compliance with Section 9795.