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<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Visionaries:<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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?<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Saundra Lund<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Here’s some interesting info that was presented to the
SBOE in April:<o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt'><a
href="http://www.boardofed.idaho.gov/meetings/2009/04_16_09/08_BAHR-FIN_April_09.pdf">http://www.boardofed.idaho.gov/meetings/2009/04_16_09/08_BAHR-FIN_April_09.pdf</a><o:p></o:p></span></p>
<p class=MsoPlainText><span style='font-size:12.0pt'>(pp 57-58)<o:p></o:p></span></p>
<p class=MsoPlainText><o:p> </o:p></p>
<p class=MsoPlainText><o:p> </o:p></p>
<p class=MsoNormal style='margin-left:.5in;text-autospace:none'><b><span
style='font-family:"Arial","sans-serif"'>BACKGROUND/DISCUSSION<o:p></o:p></span></b></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>In addition to piloting the concept of
a consortium, the institutions, in conjunction with the Idaho Division of
Purchasing, are implementing a procurement<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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:<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>1. Request for Information (RFI) -
Completed<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:2.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>2. Request for Proposal (RFP) –
Underway<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:2.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>a. The Consortium is currently
documenting baseline performance metrics and a measurement plan. The draft RFP
will quickly follow.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:2.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>b. A final RFP will be issued at the
end of July 2009<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>3. Proposal Phase<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:2.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>a. Pre-award is scheduled for November
with the final contract to be presented to the Board in April 2010 for
approval.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:.5in;text-autospace:none'><b><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></b></p>
<p class=MsoNormal style='margin-left:.5in;text-autospace:none'><b><span
style='font-family:"Arial","sans-serif"'>IMPACT<o:p></o:p></span></b></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:.5in;text-autospace:none'><b><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></b></p>
<p class=MsoNormal style='margin-left:.5in;text-autospace:none'><b><span
style='font-family:"Arial","sans-serif"'>STAFF COMMENTS AND RECOMMENDATIONS<o:p></o:p></span></b></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>The RFI vendor meeting was held on
January 9, 2009 for the purpose of <o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>i. Introducing the SHIP Consortium
project to potential vendors (20 individuals were in attendance from many
vendors)<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>ii. Introducing the Best Value concept
to vendors<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.5in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>iii. Answering questions and addressed
comments<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>Representatives from each school, DOP
and from 4 vendors attended the Best Value Conference by Arizona State in
Phoenix in February.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>Institution representatives will
present a brief presentation and will be available for questions.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-autospace:none'><span
style='font-family:"Arial","sans-serif"'>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.</span><o:p></o:p></p>
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