TAHU Update Volume No. 3 Issue No. 6 February 2002
February MEETING
Monday, February 18, 2002
Marriott at RTP
Exit 281, Miami Blvd.
11:45 am, Luncheon Meeting
FEBRUARY GUEST SPEAKER
Robert C. Paschal
Young, Moore & Henderson
Mr. Paschal is a Partner at Young, Moore & Henderson, PA and a lobbyist for the Triangle Association of Health Underwriters. His practice emphasizes matters relating to life, accident and health insurance and ERISA, legislative, representation of TPA's and corporate law.
Robert is admitted to practice in all state and federal courts in North Carolina, the United States Court of Appeals for the Fourth Circuit, and the United States Supreme Court. He is a member of the North Carolina State Bar, North Carolina Bar Association, American Bar Association, Defense Research Institute and American Law Firm Association.
Robert gets to cheer for both Duke and Carolina since he earned his B.A. at UNC-Chapel Hill and his J.D. at Duke Univ. He is an elder at White Memorial Presbyterian Church and Chairman of its Building Committee; Member of the Board of Directors and Executive Committee of Rex Healthcare Foundation.
SPONSORED BY
Advance Insurance Company
President's Message:
Gene Lee, Jr., CHC
A professional helped me to construct the framework for understanding and focusing on priorities for daily actions. By defining what I do, what I believe, and what the customer can expect, it has helped me to weed out some of the daily distractions that are prevalent in our business. I want to share these with you now, for what they are worth.
What I do. I provide personal assistance to clients who wish to make well-founded, intelligent benefit choices consistent with their values, beliefs, and corporate objectives. I listen carefully to their objectives and goals, and suggest the benefit alternatives that will be consistent with those goals. Because I am a resource to my clients in a broad range of benefit matters, I can help them identify and research benefit resources that have a favorable impact on their communities.
What I believe. I believe that benefit decisions have an important impact on the lives of others, as well as our own, and that good decisions are based on thoughtful deliberation and consistency over time. I make it a point to provide time for candid discussions with my clients because it is critical that they be comfortable with their benefit decisions. My professional career is based on respect, confidentiality, and service. I believe the generosity and the eagerness to return something to the community are hallmarks of professional maturity.
What the customer can expect. As my client you can expect personal involvement that makes the benefit choice process understandable, comfortable, and easily accessible. Because your benefit questions and concerns are important to me, I arrange my appointments to that I can give you my undivided attention. I will respect your benefit preferences, including the social and financial impact of those benefits, and I will work to develop recommendations that are consistent with your corporate values as well as your financial goals. You can expect that I will stay well informed on the strategies that may help you attain a competitive employer position in this marketplace.
A word of warning - it can be emotionally and physically taxing to try to implement these objectives perfectly everyday. The rewards for me have been the exposure to colorful and diverse people and relationships. They have all enriched my twenty-seven year professional journey. Let's do our best!
Saludos Amigos
Law & Legislation:
Nancy Winter & Bill Hendrickson
As both Federal & State legislatures have been on a long months break, we (the other citizens) have been allowed some free time to contemplate the overall picture of things. More facts about Martin Frankel have surfaced in the news - the very crazy con-man who had acquired 7 southern insurance companies with embezzled money, conned a major law firm in Washington DC, was very close to conning other major investors around the world, including the Vatican - when he got caught. Guess how? By some "alert insurance regulators in Mississippi." News stories of Enron: suggest that had some SEC regulators been more alert, (or if Congress had clarified some law) many employees' savings might have been preserved.
I have learned to value our regulators. In January we held the annual NCAHU board meeting and lunch with Department of Insurance. It is evident we have a lot in common. We're both looking out for the best interests of the consumers, we don't want con men or unstable companies working in our midst, competing for the confidence of the consumers. A few articles back I was bemoaning the high cost of regulation, but after Frankel and Enron - please, regulators, stay alert! We recognize our citizen & professional responsibility here as well. We need to make sure that laws are clear so good businesses can prosper and bad ones are discovered before they cause any damage.
From 1/29/02 Wall Street Journal: The giant pharmaceutical company, Merck, plans to sell off its Pharmacy Benefits Management unit, Medco, in an effort to improve the value of Merck's stock. As we have heard from many of our noontime speakers, pharmacy usage and costs are an ever larger factor in medical treatment and thus, in the increasing cost of health care and health insurance. Merck acquired Medco for $6.6 billion in 1993 and has seen the Medco revenue increase by 12 times to an annual figure of $26.4 billion which is 55% of the total Merck revenue! Margins are very thin among the PBM companies, however, and without Medco, Merck's stock should increase in value. Eli Lilly divested itself of PCS in 1997 and SmithKline Beecham sold off Diversified Pharmaceutical Services and 1999--both at a loss to their owners. Merck may attempt to sell Medco through an initial public offering in which case, based on present Medco revenue, Medco would be among the 70 largest companies in the world, revenue wise--ahead of BellSouth Corp and Walt Disney Co. Thus is the impact of pharmaceuticals in the world economy. With Congressional efforts, along with strong lobbying from groups like AARP to bring some drug benefits under the Medicare banner, the Pharmacy Benefits Managers will continue to play a larger and larger role in the treatment of physical and mental conditions. No one wants to restrict drug treatment if it can help the patient, but legislation cannot be passed that will continue to choke the budgets of businesses that in the long run, pay for most of the premiums for health insurance and thus allow drugs to be purchased at minimum cost by the patients. These PBM's are huge companies, mostly receiving their revenue indirectly from employer money. Our vigilance as to legislative action is essential!
1/24/02 New York Times: States are having to make painful choices as Medicaid expenditures continue to exceed budgeted amounts; last year it grew by 11% overall; 20% in pharmaceutical expenditures. The 36-year-old insurance program covers 44 million people, pays for one-third of all births and nearly two- thirds of all nursing home patients. Despite these figures many people still consider divestiture of assets and falling back on Medicaid over getting health or long-term care insurance.
A few more useful stats from a 1/8/02 New York Times article: Health care spending in 2000 up 6.9 percent from previous year to $1.3 trillion (13.2% of nation's total output), ($4,637 per American). But not to worry, this probably pales in relation to total American output on entertainment, so I guess we can struggle through somehow.
Other items of federal legislative interest are being sent to you regularly from NAHU. The state legislative session won't begin until May, unless brought back for emergency budget considerations. Redistricting issues could possibly delay start of the session beyond May. Day-on-the-Hill plans are therefore on hold; hopefully by March we be able to announce the date for this annual event in Raleigh. Over the next 3 months, we will be watching and reporting on the legislative study activities, as listed in last months newsletter.
For more information contact Nancy Winter at: nancy@medsaver.org
919-493-9405
Website
Michele Gregory, MHP, RHU, REBC
Ask The Webmaster
Dear Webmaster: I don't like having my address and phone number posted on the website. Will you please remove it?
- N. Cognito
Dear N. Cognito: If that is your preference, we will gladly list your name on our Membership List without any contact information - just let me know. Honestly, considering the business we are in, I think it's a bad idea, but I am happy to oblige.
- Webmaster
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Dear Webmaster: I have been a member of TAHU for years, and have just recently moved to a new office. Does anybody in our organization need to know my new contact information? If so, what do I need to do?
- I.M. Changin
Dear I.M. Changin: The TAHU board knows that we are all "movers" in this industry - so when you make changes, we make changes. You can contact me by email at michele.gregory@bcbsnc.com or by phone at 919.461.5271 with your new information.
Since May 2001, membership contact information has been available on the TAHU website: http://www.nctahu.org/members.html
Website corrections are usually made overnight, so no matter how often your information changes, TAHU members will be able to get in touch with you.
- Webmaster
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Have any "Ask the Webmaster" questions? Send to:
Michele Gregory, MHP, RHU, REBC
Blue Cross Blue Shield of NC
Email: michele.gregory@bcbsnc.com
Phone: 919.461.5271
Membership:
Donna Cashwell
Please WELCOME our newest members to TAHU:
Kyle Lawrence
AFLAC
404 Hillsborough St. Suite 200
Raleigh, NC 27603
ph. 839-8894
Fax 919.839.8175
aflac_nc@bellsouth.net
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Jane Cavenaugh
4010 Barrett Drive Suite 203
Raleigh, NC 27609
ph. 783-8844
fax 783-9334
jlcavenaugh@ft.newyorklife.com
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Clark Anderson
SIA Group
5950-C Six Forks Road
Raleigh, NC 27609
ph. 847-0089
fax 847-6108
canderson@siagroup.net
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Community Service:
Nancy Gibson, MHP
We would like to ask your help in supporting the Durham Crisis Response Center. This organization serves victims of domestic and sexual violence. Some of the services that they provide include: legal advocacy, emergency shelter, 24 hour crisis line, community education, individual counseling and a safety program.
Part of the safety program is providing a cell phone capable of dialing 911 in case of an emergency. The agency would appreciate our donation of cell phones that are no more than 2-3 years old - ones that are capable of not having to be activated in order to dial 911.
Your donation should include the phone as well as the charger. We will collect your donations at the meetings in February and March.
Communications:
Tom Snell,CLU, ChFC, RHU, REBC
We'll be on the lookout for you at the February Luncheon. This regularly scheduled luncheon is on Monday, February 18, 2002 at the RTP Marriott, just off I-40. Go ahead and put it on your calendar now. And invite a co-worker! Prior to the speaker we have a wonderful lunch planned:
Chicken Okra Soup
Sliced London broil
Grilled Chicken Imperial w/ Teriyaki Style Glaze
Rolls and Butter
Tossed Garden Salad
Orzo Salad
Chef's Choice of Vegetable
White and Wild Rice
Sliced Fresh Fruit
Apple Pie
Coffee, decaf and Tea
Fax or e-mail your response to Tom Snell at MAMSI Health Plans. Fax: 919-281-7222, or e-mail: tsnell@mamsi.com. Lunch is $12.00 for members and first-time guest are free.
Attendee: ________________________________
I (will) be attending the February meeting.
I (will) (will not) bring a guest/prospective member.
Guest name: __________________________________
There is no need to fax the response back if you are not planning on attending the meeting/luncheon.
Please RSVP no later than February 13th.
As the success of the Triangle Association of Health Underwriters largely depends upon the benevolence of corporate contributors, we are proud to honor the following organizations for their continued support of our many programs and activities:
Diamond Sponsors
2001-2002
Blue Cross & Blue Shield of NC
United Healthcare
Please extend your appreciation to the Triangle members representing these organizations and remember their generosity when placing coverages.
Please remember that the cost of lunch for TAHU members is $12. Guest and non-member lunches are $16.
There will be a $3 charge for lost or misplaced name badges. Please remember to turn in your badge at the conclusion of each meeting.
Triangle Association of Health Underwriters
P.O. Box 19177
Raleigh, NC 27619-9177
