Insurance Committee December 3, 2004

Attendees:

Tina Byford, Chair Quentin Ford

Joy Watkins Denise Welsh

Janet May Steve Gross

Diana Quintana Lynford Ames

Jacky Ryberg Ben Wood

Neta Fernandez Minerva Rivera

Lori McKee Steve Chreist

Delta Guests: Maggie Nevins

Gina Chambelin

Blue Cross/Blue Shield Guests:

1. The representatives from Delta reported that the loss for NMSU has dropped from 107% to 93% during the last year. The desired claims loss ratio is 84%. Fifty percent of all costs are for diagnostic and prevention services. Although there has been an improvement since July 2003, this is still a concern. For the Las Cruces area, 84% of all dentists are on the Advantage Plan, compared to the State average of 60%.

2. The bid for NMSU health provider will be released next week. Questions will be accepted until December 10. All bids are due on January 11, 2005. The Insurance Committee will meet on January 26 to over bids and will interview in February. Final decision should be in March.

NMSU could offer to more than one vendor, such as HMO from one vendor, PPO

to another vendor, etc.

3. Discussed the NMSU Health Care Utilization Report from Blue Cross and Blue Shield. The average Per Member Per Month (PMPM) is $211, which is $63.39 above the BCBSNM norm (excluding RX)

4. Discussed that the number of Emergency Room visits increased. It is believed that the addition of a new hospital in Las Cruces and the closing of Family Medical Center and Urgent Care may explain the increase.

5. The BC/BC representatives also reported that 72% of employees who have insurance have the HMO option.