[Vision2020] UI Student Health Insurance Question

[Saundra Lund]

Visionaries:

 

Yes, I am on a health insurance kick since finding out the cost for UI
employee families is so much higher that it has financially forced something
like 68% of employees into a high deductible plan while employees at LCSC,
BSU, and ISU continue to have access to quality affordable health insurance.

 

I've heard rumblings about displeasure with the student health insurance
situation.  Donovan, if you're still reading, could you please refresh our
memories about what your concerns were?

 

In any case, when reading through information I was able to find in State
Board of Education (SBOE) minutes, it looks like LCSC, BSU, & ISU joined
together to form a Student Health Insurance Plan (SHIP) Consortium last
fall.

 

Does anyone know why the UI isn't participating in the SHIP Consortium?  As
always, those who don't wish to comment publicly can be assured of
confidentiality regarding anything you share with me privately.

 

My concern is that by not participating in a larger pool, UI students will
face the same kind of ***significantly higher*** premiums and inferior
coverage UI employees have been slammed by the last 18 months or so.  It's a
no brainer that if mandatory student health insurance costs go the way of
employee health insurance costs at the UI, this would have a negative impact
on the UI's ability to competitively recruit and retain students.

 

 

Saundra Lund

 

Here's some interesting info that was presented to the SBOE in April:

http://www.boardofed.idaho.gov/meetings/2009/04_16_09/08_BAHR-FIN_April_09.p
df

(pp 57-58)

 

 

BACKGROUND/DISCUSSION

As healthcare costs continue to soar, pooling to manage costs through a
purchasing consortium is becoming more common among institutions of higher
education. When universities band together to purchase student insurance,
they can increase their purchasing power and provide higher quality care
while increasing the predictability and stability of costs. To that end, in
the fall of 2008, Boise State University, Idaho State University, and Lewis
and Clark State College joined together to form a Student Health Insurance
Plan (SHIP) Consortium.

 

In addition to piloting the concept of a consortium, the institutions, in
conjunction with the Idaho Division of Purchasing, are implementing a
procurement

methodology focused on obtaining the "Best Value Vendor" based on research
performed at Arizona State University (ASU). ASU has been engaged, using
grant funding, to consult with the Consortium on this new methodology.

 

Once formed, the Consortium developed a project plan and identified major
stakeholders, several of whom are now part of the core project team. The
project has been divided into three phases:

 

1. Request for Information (RFI) - Completed

a. An RFI was developed to identify potential barriers to a successful
Consortium and to educate the vendor community about the procurement. As
part of the RFI, the Consortium held both stakeholder and vendor
informational meetings.

2. Request for Proposal (RFP) - Underway

a. The Consortium is currently documenting baseline performance metrics and
a measurement plan. The draft RFP will quickly follow.

b. A final RFP will be issued at the end of July 2009

3. Proposal Phase

a. Pre-award is scheduled for November with the final contract to be
presented to the Board in April 2010 for approval.

 

IMPACT

In addition to managing costs while maximizing coverage, the Consortium is
using this project as an opportunity to pilot the Best Value procurement
process.  The Best Value process embeds post-award reporting to continually
measure performance throughout the life of the contract. Both the contractor
and the institutions are reviewed to evaluate efficiency in delivery of
services.

 

The benefits of using the Best Value process include increased
accountability of vendors and institutions, streamlined internal processes
focused on value and efficiency, reduced disputes and litigation, and more
transparent processes.

 

STAFF COMMENTS AND RECOMMENDATIONS

The RFI vendor meeting was held on January 9, 2009 for the purpose of 

 

i. Introducing the SHIP Consortium project to potential vendors (20
individuals were in attendance from many vendors)

ii. Introducing the Best Value concept to vendors

iii. Answering questions and addressed comments

 

Representatives from each school, DOP and from 4 vendors attended the Best
Value Conference by Arizona State in Phoenix in February.

 

Institution representatives will present a brief presentation and will be
available for questions.

 

This consortium of institutions joining together to purchase student
insurance, which will provide higher quality care while increasing the
predictability and stability of costs, is an example of a method to increase
the purchasing power of the institutions that can applied in other areas of
operations.

 

Currently the University of Idaho is not contemplating joining the
Consortium and is requesting the Board approve a 5-year contract for student
health insurance in a separate agenda. Even though University of Idaho may
not be part of the initial statewide SHIP Consortium, they should be able to
join at a later time should they decide it is cost beneficial to them while
maintaining coverage.

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