LETTER OF UNDERSTANDING #10 - JOINT HEALTHCARE COMMITTEE

During the 2011 negotiations, the parties discussed the mutual goal of designing and implementing health care plans, including ancillary plans, that effectively manage costs and that work to keep members healthy. To that end, the Employer and the Unions will convene a Joint Healthcare Committee (the “Committee”) whose charges will include, but not be limited to:

a.  Analysis of current plan performance identifying opportunities for improvement;

b.  Investigate potential savings opportunities from re-contracting pharmacy or other carrier contracts;

c.  Review the current specialty pharmacy program and identify best-in-class specialty programs to use as a benchmark;

d.  Analyze current HMO plans to determine if they are a cost-effective means of providing high quality health care;

e.  Investigate impact on outcomes and costs of Value Based Benefit Designs;

f.  Identify opportunities for cost-containment programs and carve out programs;

g.  Investigate opportunities to save costs by modifying or otherwise limiting medical, professional and pharmacy networks;

h.  Review current chronic care management programs to determine effectiveness as well as ongoing member compliance;

i.  Investigate work place health and wellness programs and make recommendations with the goal of educating and motivating employees toward improved health and wellbeing;

j.  Make recommendations to increase voluntary participation in health and wellness screenings and benefits included in current health plans;

k.  Identify educational opportunities relative to facility and professional provider quality data, as well as designated centers of excellence.

As mutually agreed by the parties, independent subject matter experts and consultants may be called upon to assist the Committee in carrying out their charges.

Within 30 days of the effective date of the Agreement, each union shall appoint a representative to serve on the Committee and the Employer shall designate up to four representatives. The Committee will be jointly chaired by a representative designated by OSE and a representative designated by the Unions.

Monthly meetings of the Committee shall be scheduled with the first being held no later than 45 days following the effective date of the Agreement.