ALC-Executive Subcommittee

After a contract consultant services agreement. I'm just gonna go over briefly with you the terms and the contract and then I represent representatives from the Siegel group here and they can get into more detail with the scopes of work that are attached. This is a contract between the bureau of legislative research and the Siegel group incorporated and their consultants services group that have assisted this subcommittee with the employee benefits health benefits study that they've conducted over the last year. At the purpose of the contract is shoot for the bureau to hire Siegel and so that they may assess the employee benefits division with two procurements that were recommended by the executive subcommittee study. And are currently set forth in draft legislation and that's been released to all of you and one is for at procuring a new pharmacy benefit manager and the other is for and Medicare advantage with prescription drugs plan for retirees and those programs and then the third scope of work for this contract is to have Siegel assessed the Legislative Council with the study that it will conduct over the next year and a half regarding the feasibility of a diabetes management program for those plans. And. Following approval of this contract the bureau has been instructed to enter into a memorandum of understanding with employee benefits director and add that will allow a B. D. to utilize Siegel services for these purposes and that the Legislative Council still maintain contractual relationship with Siegel Siegel report monthly to you on the progress of their work. I'm you'll see on page two on paragraph five the term of this contract would begin immediately upon approval by the Legislative Council tomorrow should that occur and it will continue through December thirty first of twenty twenty four at the length of this contract is to ensure that Siegel can provide you with an analysis of any planned savings that occur from the new procurements the new contracts and after the twenty twenty three plan year for the programs and also to finish out helping the Legislative Council with its diabetes management study. The total maximum contract amount is set forth in paragraph six and that's six hundred eleven thousand two hundred dollars as always with our contract this is a maximum contract amount the three scopes of work that are attached to this contract set out that hourly rates the employees they'll be utilized and Siegel will continue to invoice us on a monthly basis for the actual hours that they utilized in their actual expenses and those are the highlights the rest of this is our our usual contract language be happy take any questions. Members are there any questions for Mr. Thank you just a minute ribs induction you're recognized. Thank you Mr chair So. I think this I mean just having skim through real quick I think this is a. And everything we're asking for but This is also largely depend on legislation passing that hasn't passed yet is there any type of. The there's nothing that relates to the legislation. The representative Wardlaw. Address at the there's there's nothing in this M. O. U. R. this part of the of the agreement that has anything to do with the legislation that is pending so this this contract will still be able to go through with the consultant advice and and programs stuff even if we don't pass one or more pieces of the legislative package that's being proposed yes thank you. Any more questions do not seem you thank you. Next we will have a. It can beer and Patrick Klein if you all would come up with the commission. Okay. Appreciate your being here today let me again thank you for the work working with EBD. In the the Committee on this for a long time I don't know if you have anything that you. The presenter we use of questions. we appreciate obviously being here and given the opportunity We we basically put together just the scope of what we thought and and are you would work we would work you know with the state on all the contract terms everything that you need to understand every state has different procurement rules we typically you know as we go through these there's multiple back and forth and input from the people working with some Symphony B. D. and everybody else that input as we right there being do it jointly. we're just looking to you know work together with as many as we can get the best product out for the state and hopefully get the best contact place for yes. Okay thank you. Any questions from committee. Senator Hickey you're recognized just again I ask you all this all the time this is more for the benefit of the committee and this setting that we're in. Timelines would you just go over that so that the committee okay I understand this contract everything that you're doing enrollment periods and things of that nature please for. So in the pretty similar but The governor and they will spend some time originally. we really recommended and we've been doing this lately with some of our state contracts that pre meetings like you before the R. P. is released to have under common and just. Discuss various aspects to make you either have them better understand the process have people state I understand you know how it all works so under Medicare and so I will have a few vendors come in just to discuss it B. Three to four five Anderson we thank in the pharmacy PBMs they will offer that up for the pharmacy vendors as well so we do that the beginning before doing it as a right near the the goal would be to get everything finalized the R. P. released in March late March probably so it's moving fairly fast. Give the vendors you know. The couple months typically six to eight weeks the responding to the proposals together to come back in June. The pharmacy one of the. Yes the goal would be to have a selection at the end of June and then you have About three to four months of implementation activities and then by the time it goes live on a January once it's moving fast I mean it's a quick time land right there the. you need six to eight weeks the rate that get that out and it you know it could very well mean that that maybe that slides and April income to lower and you get a under six weeks to respond instead of eight weeks but the goal would really be to have a vendor selected by the end of June and July the latest. You can make to you Mr and again just that are represented Dotson in what direction Wardlaw said you know all this course does dovetail with some of the legislation and I stayed up till I mean. We need to get this or if the out so people get responded then we have open enrollment periods they're all tied in with that is that correct that's correct yes okay because the start date is the January twenty three so I just again this is more for the benefit of of the members here because you know so many things Wallace takes a year but even with the year that's why we're trying to get everything in place having you to do the help with our of P. three B. D. make sure that we get all this stuff done by the enrollment period and then can start that within that time period so I just think it's a benefit that the. Everybody can understand so the way the process works. Thank you. Representive person you're recognized. Thank you Mr chairman I have a motion. Thank you your whole let just okay let me recognize my co chair for. Thank you Mr chairman I have two questions into the biggest concerns we've heard from AB de and the membership of the plants so the first question is is the cost and who pays and how do we educate the members on the Imedi plans going forward and then when you're done I have a second question okay typically when the vendors the bill they pay for all the implementation efforts for example in a Medicare advantage plan that will all over the state secretary meetings you communications interior bills etcetera etcetera and for that that period I'm talking about for the implementation those three months they're gonna start to be doing all that stuff so all over the state they had a high percentage of retirees. The Bill out of virtual stuff now to imagine and with everything going on still with COVID so they handle all that they pay for it they also typically have an allowance if there's other miscellaneous expenses up to put a number in the contract to you know a oversight of the administration whether it's us or whatever we want overseeing and administering that they'll have funds available for doing other marketing things or maybe there's some systems programming costs than your state local level funded cover all that so this is no extra mountain and typically money not utilized during that will roll over to you in the next contractor you could use for other purposes thank you. That was one of our concerns and moving forward this contract is how we make sure the education goes out so that the opt out is minimum of without that will be available second question is is related to pharmacy how do you see the negotiations on the pharmacy people are fees go and and how do you see being able to offer of preference to our brick and mortar pharmacies independence across the state we've we've talked about in the past the independence can be treated as a separate contractual entity as far as contract entities so that's not uncommon for states to do that and since it's a self insured program means that your cost anyway so that'll be determined you can figure that out Unlike a lot I mean it's a hard state for PBMs right now there's been a lot of legislation a lot of anti and anti PBM laws so part of the early part we talk about and then coming to talk to you is to try to get everybody comfortable both sides you know that they can be flexible have guarantee is not complete games transparency all that stuff so that's part of the initial thing and then hopefully you get competition and people one min acts and I haven't had that in the past in general so. Thank you thank you Mr. It is. All. You're recognized just just one more and I believe you all out prime this in here but I have I have one of our senators of this not here they they want to be ask you a question and it's prudent question they'd like to know about their the selection of the vendors and how you're going to interview process and how you're going to allow the openers to have access to you all there so if you if you wouldn't mind would you go over that a little bit yes so in general I mean you'll get their responses back in the finalist interviews typically designed to answer questions so you have a a set standard questions last all of all the finalists and you also have you know clarification points along the way of their contract read the interview process and just. exactly following me I guess it's it's a. It's a process where you go through you scored and as far as the scoring goes I mean inside there you'll have an I'm not your procurement works here but typically is predefined points allowed for technical versus costing the technically broken down the sections of the thousand points you may have no two hundred for the network two hundred for communications some for your county do all that stuff and then you'll have we say we've done the past as we have like points per question and he scored based on how they responded so we'll work with your procurement people make sure it's in sync with how you normally do you procurement process and for many of these you know it's. You know we have multiple people scored so people like a selection committee would typically do that we scored piece they with or piece of wood on it we together to create overall scores so you get kind of like a diverse evaluation. Again I'm asking this for members sent this to me in a text but in were in reading your documentation and everything before they possibly could be there you do have the but the pre art the vendor meetings within here. That that could be possibly what they're asking about the so we could could be the pre meetings that they outer all how to attain that access by. We don't do those all the time I just thought it was a good idea and the situation for everyone and it's kinda news let's look let's of everybody answer questions up front all both sides you know have the and made vendors there will likely build understand you guys have on your side understand the nuances of the plan figure out how that all works because a group of maybe decline is different and it's new and so is there what their comments are and then you can see if different ones are saying different things and and you know revise our future reflect how you want to do it the PBM side that's more about ill. Get everybody comfortable again you know it's like it's rough I wonder I wonder if people want to participate you know whether they win or not is we'll see it as it goes through but I just want to have a market place where people want to do business and you know I think they you have both sides meeting talk about it and to let their issues are near issues and. Yes if there's common ground. I Dotson you're recognized thank you Mr chair So I know I have we've been working for several months with you come to up with these recommendations and I can't count the number of hours that we've set their meetings and so I don't know who all is on the same page is what we are right now in this room but I know I have a high level of confidence in your recommendations and I'm looking forward to the second phase of carrying it out in the implementation of it but just for the benefit of anybody who's not at the position I'm AT and some others in the room and I know you had just done something fairly similar with was it Alabama I believe that just went through this type of a process in kind of a expedited fashion we we do we do number PVM for states Alabama had a similar structure that we you guys have with the way your design so if you would just for Just take a couple minutes and explain to us how that has transpired and have they gone I think they've gone live if I recall the line one one way I believe one one one one so she hasn't been much so we're we're just behind them in in this whole deal it if you could kind of give us just a slight. Leasing bonds is not always right but there's some bombs in the finances are coming in some of the guarantees are a little different so they're chewing up their guarantees they're working through. Formular changes things like that some destruction related to that but overall it's been. The implementation was moved and then I thank so far it's been smooth. Like I said is not bonds is always bums change of underserved you know it's formulated for Miller stuff is usually challenging you guys have any situation where you know you can manage a former there differently so they they actually sent out I think it was two or three hundred pages of utilization rules P. P. like in a manner. The the off road P. U. user the initials are I'd like to page though so yes yes I was actually the one that won the contract they've implement all of this so that you can do custom rules analysts the it's a lot like the environment and was in the past. So so so far obviously bumps in the road but their implementations along decently well and it and you have a high level of confidence that. We can emulate that that that pathway yeah I'm success would be the plan I mean mandate that you have the same vendors may we don't know what happened you know we're not. The the goal is real you know there's just there's just a lot of money so make sure you get all the money that you you should be getting back that's all thank you and if it ends up being that you do the process and you know. It's not as big savings in what we'll no I mean hopefully I guess that's why we're trying to get people allowed to participate in one of the because that'll. Push everybody a little harder. Thank you and before going further now we do have another committee starting at eleven o'clock is there anyone here that wants to speak for or against. This is your opportunity. I have one. You would like to come forward. Thank you German thank you. You will turn turn one of those Microsoft okay G. G. got it here to our. Thank you for being here today if you will recognize. Yourself and your. Okay if you do but if you're button again and we'll turn it back on. Thank you thank you Mr chairman good morning Mr chairman and members of the committee my name is Tracy and Nelson I'm the executive director of the Arkansas education association thank you for giving us an opportunity to comment on the package of legislation that creates a path forward for public school employees health insurance. I recognize that you have had to work on this issue before and again in twenty twenty one when the plan faced a seventy million dollar deficit. I'll be honest when Senator Hickey we've to get rid of the EBT Board to an award decision making to the finance board we were very worried we worried what would be forgotten in all of the dollar signs and balance sheets would be the people the teachers the bus drivers the bookkeepers the principles the counselors and the people that make our schools run every single day. I want to acknowledge the finance board representative Wardlaw your docket commitment to finding the fix on this and to Senator Hickey who in frustration was committed to a resolution. the work done by the Siegel group has been comprehensive the recommendations to create a sustainable future in both funding and design gives us confidence that our lawmakers work in the best interest of our public school employees and their fellow public servants. We've come a long way from where we sat one year ago and I know the educators and staff are grateful for this body's response with the collaboration of the governor an EBT. We also appreciate our ability to lend information to the process that could inform the content of what has evolved. We're happy to see enhanced benefits retired educators have access to pharmacy is nothing short of a blessing given what we know our elderly population face health wise. We look we're looking forward to being a part of how to move forward and it will work to ensure educators throughout our state I understand that the health benefits developed with them in mind and that they will have access to it to top notch and hands opportunity thank you very much and we appreciate all the work thank you for speaking today we appreciate to be. Yes Mr Jaitley the BT you'll come up. A good morning and I appreciate the opportunity to speak my name is Jake lead in the ministry of the Division of employee benefits at TSS. And it's road chief legal counsel TSS and director of the office of state procurement. just wanted to say that we've not received the MO you and a lot of what we're talking about today is dependent on our signing in and you which under the law you all are considering we would be mandated to enter into so it's hard for us to express support for a process and we haven't seen the express terms of that and you quite yet. I also want to reiterate that we have a constitutional obligation to manage the procurement as an executive branch and we're gonna take that role very seriously now obviously we look forward to working with C. going all this they have a lot of experience in the really good at what they do we want to reiterate that we have a job to do to our boss the governor as part of that procurement process. And I'll add you know representative Dotson mentioned whether the new legislation needs to be passed I would point out that in current statute. any contract approval you know it's not just EBT the administrative portion of it it's also the existing board which is right now the board of finance but a have control of the proof will of the contract so there's a there's a few extra layers there that we have to go through as far as going out of the R. F. P. approving contract things of that nature and I would also point out we do have concerns over protected health information and that's that's super that's federal law we have to work through some of those hoops we've provided some of that I think if there is additional information needed that's a discussion that will have to have and will have to make sure that we comply with the law and I know Siegel would comply with the law as well it just adds an additional wrinkle. Thank you gentlemen for being here appreciate your input thank you. Anyone else. The one state employees. Want to speak. Not not see anybody see any more questions the Committee representative person you're recognized. Thank you Mr chair. I like to move with the approval of the contract between the L. R. in the Siegel group. And also authorized to be are directed to enter into a memorandum of understanding with the E. B. the director regarding the utilization of the single services. Of both entities under the contract this chair. It is proper motion I do have a second. All in favor aye. Opposed. At the contract buses thank you for being here we have anything if you will. No other business we are German thank you for being here today.