Recommendations

1. The University should not separate from the State for 1999.

The positive developments with the JLMC, the indication that University providers may become part of the State Health Plan Select network, and the shortness of time available all lead to the conclusion that the University should not separate from the State for 1999.

2. The University should continue to work closely with the State as it puts together its future plans.

The Task Force is optimistic that the State will successfully address many of the issues of concern to the University and is particularly encouraged by the addition of two University representatives to the JLMC and by the willingness of the State to address these issues. The Task Force recommends that the University continue to work closely with the State as it puts together its future plans.

3. The University should not commit to remaining with the State for 2000.

Despite its optimism, the Task Force recommends that the University not commit to remaining with the State for 2000. Instead, the University should pursue two avenues.

1. The University should make the appropriate preparations to be in a position by July 1998 to decide to separate from the State in 2000. These preparations should include further market research, discussions with vendors, and actuarial analysis of the University's demographics and medical usage experience. Further study of the issues surrounding health coverage for retirees should be included.
2. The results of these preparations may indicate that the University cannot significantly improve its situation by separating from the State. At the same time, the State may not address all of the University issues. The University should explore the possibility of arranging for supplementary insurance to cover some of the needs not met by the State options. The need for out-of-area coverage for faculty on sabbatical and for early retirees is of particular importance.

4. The University should accelerate the process getting University providers better positioned in the health care marketplace.

While there is considerable optimism that University providers will be represented as a primary care option in 1999, some ambiguity remains about whether they can be in a position to take advantage of developments for 2000. The Task Force urges the University to accelerate the process getting University providers better positioned in the health care marketplace. In particular, the Academic Health Center administration should renew its negotiations with the Buyers Health Care Action Group, which is emerging as a substantial player in the market and is under serious consideration by the State as a health plan option.