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You Are Here: Home > Leg > Hot Topics > Health Pool > 2/20/2007
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Mandatory Health Insurance Pool

Is it Fair to Compare SB 426 to the Public Employee Benefit Board?

According to the governor's office PEBB is the model for SB 426. Note this direct quote:

"Because the inference here is that a state controlled [health insurance] pool, you know, state government, it sounds like it's very inefficient and heaven forbid if we do this...if you look at the programs in the state of Oregon PEBB is the model that we hope all other state agencies would live up to . . ." [emphasis supplied]

James Sager, Education Advisor to Gov. Ted Kulongoski and former President of the Oregon Education Association
Washington County Public Affairs Forum, “Will Oregon establish a Statewide Health Insurance Program for School Districts during the 2007 Legislature?” December 18, 2006

Watch the video (Requires the Adobe Flash Player to view)

The operational structure, governance, goals, benefit plans, budget, scope of authority and wording in SB 426 itself is modeled on the statutes governing PEBB.

Comparison of PEBB Pool vs. OSBA Health Insurance Trust Pool

SB 426 is clearly modeled after PEBB. It is only reasonable, therefore, to examine the cost savings and benefits produced by that model.

Can you tell the difference? We can't. 

 Structure

PEBB SB 426
Agency Assignment Department of Administrative Services Department of Administrative Services
Budget Development Governor's budget submitted to the Legislature Governor's budget submitted to the Legislature
Governing Board Appointed by the Governor; confirmed by the Senate Appointed by the Governor; confirmed by the Senate
Number of Board Members 10 10
Voting 8 voting members and two members of the Legislative Assembly (non-voting) 10 voting members
Member Representation State management (4)
Non-management employees (4)
Legislative Assembly (2) (non voting)
District boards & management (4)
Non-management district employees (4)
Experts in health policy (2)
Term of Office Four years Four years
Service Voting member serves at pleasure of the Governor Members serve at pleasure of the Governor
Officers Board selects its own chair and vice-chair Board selects its own chair and vice-chair
Quorum Majority of voting members Majority of voting members
Benefit Plans  ". . . the board shall contract for a health benefit plan or plans best designed to meet the needs and provide for the welfare of eligible employees and the state." ORS 243.135 "The [OEBB] shall contract for benefit plans best designed to meet the needs and provide for the welfare of eligible employees and the districts." (Section 4)
Benefit Plan Factors for Emphasis Employee choice among high-quality plans Employee choice among high-quality plans
  A competitive marketplace Encouragement of a competitive marketplace
  Plan performance and information Plan performance and information
  Employer flexibility in plan design and contracting District flexibility in plan design and contracting
  Quality customer service Quality customer service
  Creativity and innovation  Creativity and innovation
  Plan benefits as part of total employee compensation Plan benefits as part of total employee compensation
  The improvement of employee health Improvement of employee health
Board Authority 
". . . authority to employ whatever means are reasonably necessary . . . " (ORS 243.145) " . . . may employ whatever means are necessary . . ." (Section 10)
Other Benefit Plans
(in addition to health and dental)
Including vision, life, disability, long term care 
(ORS 243.105 & 243.291)
Including life, supplemental medical, dental, vision, accidental death or disability (Section 5)
 

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