director's reports? the director has made a recommendation regarding some legislative -- i'm sorry. >> two recommendations. one for the department of managed care. >> one the department of managerred care letter and the draft is in the materials and secondly regarding bill number 137 -- >> 137 and watch position. >> and watch positions on the other two bills, 26 and 125. >> 125. >> so is there any recommendation or action by the board? she's asked for an endorsement. >> this is not an action item. >> i understand. this is an discussion item. is anyone going to raise an objection if she does these things? i don't hear objections by the board members. is there any public comment? oh there is public

comment. >> good afternoon. nice to see you. i wanted to make a couple of comments on the legislative session. i was too at the legislative committee yesterday and complete understand the current watch position on sb26. i am hopeful and anticipating that we will do everything possible to move that bill to a place where we can move to a support position because it begins to get at all of the things that we spent so much time struggling with around having data that we could use to make good decisions, having the kind of transparency we needed to be able to guide our members in their own best interests, and also to move into an accountability model for health care which of course requires

understanding what is happening, so i pledged yesterday and i will pledge again that we want to work with whom ever and on this we feel it's that important and the great thing is we're not -- right at the moment there is no gun to our heads. we're not in the middle of bargaining. we don't have a sutter blue shield disaster looming right this moment. kaiser seems to be calm for the time being so i am hopeful that some of these thing tas are important but sometimes don't get the attention because nobody has the capacity, and along those lines i would just like to ask whether this board would also be willing to take a look at the united food and commercial workers lawsuit against sutter right now? that lawsuit begins to again look at the anti-competitive practices, many of which we're bound by through our contracts with blue

shield and their contracts with sutter have no position on it particularly, but there are people taking up some of the questions, the very questions we have asked here and seems to me that we might want to get more information about what possible synergy there might be in joining together in those efforts, so thank you for your time and your continued effort. >> thank you for your comments. is there any other public comment? >> claire again speaking for myself. traditionally this board never took positions with regard to any legislation and so i see this as very helpful, and a positive step, but i also hope we're working with the city's representatives in sacramento who represent the city and county and that this is much more than just health service going with regard to these

bills but it impacts the bigger picture of the city and i am hope thrg is some -- hoping there is cooperation and collaboration there and whoever represents the board of supervisors at the state level so it's a broader more firm lobbying effort -- >> i didn't hear the word. >> i should say it "representation" at higher bodies and i actually like to second what rebecca said about the lawsuit against sutter. that's an issue that we brought up at the retirees and came up during the time with negotiations with sutter and blue shield and the fact that many of the retirees live in the counties where there are no options for services so we're interested in following up and how that goes forward and keeping the options open in regard to what the board

decides to do in the future so thank you very much. >> thank you for your comment. we are going to be guided in any of these efforts what is allowed urn our charter provisions by our council so unless anyone get any understanding or perception that we're out lobbying or doing those things. we do not do that here and we are a trust body. we look at the things that impinge upon the interest of that trust and through the is appropriate channels and from our counsel will be active. yes? >> >> just to reiterate these bills were taken to the legislative committee and the board of supervisors and the mayor yesterday, so -- >> [inaudible] >> all right. thank you for that clarification. all right.

we are i believe ready for the next item. >> item 15 discussion item. hss financial reporting as of december 31, 2014. pamela levin. >> pamela levin, deputy director cfo. there is nothing significant to report as a difference between last month and this month. in either the trust or the general fund except for the fact that because of two delays in hiring we're showing a larger general fund surplus at the end of the year. we are quickly hiring up and i will be back next month and let you know where we are. >> all right. and again while you're here standing i want to personally and i know the board does as well commend you for the work that is represented here in the finance committee documentation that we received

and discussed earlier at the meeting. it's taken an extraordinary amount of time and toll i know, professionally and personally for you to give leadership to this over time, and we thank you for that. >> thank you and i couldn't do it without a great staff so i would like to thank my staff and i would also like to thank corrina. she was helping me with the budget and without her we wouldn't have had all of the documents done. >> it's a great piece of work. thank you again. okay. next item. >> are we doing item 16 or carrying it forward? >> what? >> [inaudible] >> yes please. >> item 16 discussion item approval to award contract for the f sa cobra 11. >> as i indicated earlier

chief financial officer levin -- i am trying to get my head wrapped around the title. we listed this in the agenda as an action item -- discussion item and you're calling for action, so i would like to continue this item to our next meeting unless there's something that we absolutely need to know today or creates an issue for you. >> i had discussions with the city attorney about the issue about they're starting to prepare to take over cob raas of july 1 so i am pretty comfortable with his recommendation that we continue on and come back to you next month. >> okay. thank you very much

for that. okay. >> item 17 action item approval of the annual report. director dodd. >> thank you. catherine dodd director. i just wanted to highlight a couple of things and this is again an example of your work and the work of our department. this annual report is an 18 month look at the accomplishments because we wanted to get on the calendar track with our strategic planning and planning here. again our increase in terms of the number of people that we provide services to. we increased year over year by 1167 lives in 2014 and i think that concept is like two large employers so as we increase there's -- think of adding

large employers to our department. i think the info graphic on page five kind of summarizes how complex our activities are. i want to thank the communications manager for updating that in finance and all of the people that gave input. the idea of 72,000 calls, 21,000 in person member visits is pretty staggering. this was a year where we also had to implement the federal taxes, so the pe cory fee which is per employee per year, the transitional reassurance year and $63 per employee per year. all of these add up to an incredible amount of money that was pumped into our rates. we were successful in taking the money we applied

for through the early retiree insurance program, the 6.92 million and lowering the rates but that certainly didn't off set all of the fee associated with the obamacare. despite all of that. >> >> affordable care act. and the increase when you subtract the taxes was .1 4% in 2014 and for 2015 negative 2.8 percent so those are significant accomplishments. as was mentioned earlier the board passed and forwarded to the board of supervisors a transparency resolution which included asking that we not -- that we review our contracts so they don't have anti-competitive language in them. we continue to monitor our acos. we increase the finance team in

terms of funding. we launched our analytics program and selected an all payer claims data base vendor and as we said earlier the well being program became a reality, and is in of itself one of the jewels in our crown, so with that that concludes my report. the financial data, audited financial data is in the general report. you've already seen it when you heard the auditor's presentation. thank you. >> are there questions of the director regarding the annual report from members of the board? this is an action item. >> yeah. >> i would love to accept the annual report. >> okay. it's been moved. is

there a second? >> second. >> it's been properly moved and second that the annual report for the period be accepted. are there questions from members of the board? any public comment? commendation or otherwise? thank you. all in favor signify by saying aye. >> aye. >> all those opposed? it passes unanimously and i would add for the record this board's thanks for the hard work of staff and its cooperation of both past and present throughout this 18 month period to bring this level of accomplishment and success to the work of the system.

>> item 18 action item. presentation of 2015 demographics. director dodd. >> i'm going to call upon our analytics director who worked with our communication manager who put the demographic report together just to give a couple of brief highlights. >> thank you marina colridge data analytics system. >> hello. how are you? >> i will raise the microphone. >> that's good. thank you. >> for those tuning in on sfgtv you will find our demographics report on my hss.org. and i am just going to high level walk you through how we compile this report and again my thank you to the communications manager, rosemary. i play with the raw data and numbers and she makes it look good. we start out our

demographics report by giving incite to the lives of the scribers and the independents and we then look at the members. >> >> and sub scribers or all of those across our employ ears and then we look at the employee population and page 21 we look at the retiree population and the final pages from 29 onward take a look at the individual employers so each of the sections tend to repeat in terms of what you see in them with our demographics, and i will say this report is already dated because as we spoke earlier our director that we have implemented some aca guidelines so the city as well as the school district have expanded to benefiting the temporary employees at 20 hours and closer to 112,000 lives as we look at

our plan year. mostly significant for us for the first time in five years we see that our blue shield enrollment increased and of course that is been in part of the effort and strategy put forward by the health service system and the board. with regards to most of the other demographics we see here they tend to be consistent year over year in terms of gender mix, population, age and employers and the dependents and the to the subscribers and with the active populations and others and nothing overly insightful there. we continue to -- yes? >> the overall age of kaiser -- of blue shield being lowered than the overall age of kaiser?

>> yeah that is true. i will speak to that and i am glad you reminded me of that piece. when we look at our total lives you will see that the age of blue shield is slightly lower than kaiser and on page five of your demographics report, average age of 44.23 to 44.1. that is true because some of the medicare dependents and disability dependents that are lower age than when you look at the same group of dependents in the other health plans and it's specifically the dependents of retirees that are driving that number. we like to look at the statistics and study by the gender mix and we have brought to the board some of the risk studies and looking at it by other statistics and previously we reported blue shield had a

higher age. that's still true. a lot of the studies we're looking at active population and that is true today and when we look at all of the lives there is the one group with the retiree dependents that is pushing that different yecial. we continue to see 96, 97% of the population whether active or retired are in the eight bay area counties and those in the board room and heard about the impacts of the market in california and it's substantial because that is where our membership is. in your own time you can look at page six. we added more analysis by age groups and you have seen in the previous year's reports. i have skipped ahead to page 16 where we're now looking at both our employee members and dependents combined. again that blue shield out bound migration has

stableidesd and we saw that increase and i think -- just quickly browsing forward over to our retiree members on page 21. just in summary i will say that we did see a significant increase in our enrollment in retiree dental in 2015 over 2014. that increased by 1185 lives which was almost four times as great an enrollment boost that we have seen previously. doing a deeper dive on that data it looks like 32% of the new live are people that waiveed in the previous year so the supposition is that the change in the mental benefit helped people select the dental coverage where they previously had not and finally some notes by our employers. we certainly

for the other three employers and by that i mean the unified school district, the community college district and the court. when you look at the proportion of their active population to the retiree population they have more than 50% of retirees as a proportion to the number in actives whereas and city plan for example we've got roughly 27,000 retirees and 62,000 employees so the proportion is considerably less than 50%. also for -- i think this is new this year but certainly city college had a decrease in enrollment maybe due to the instability issues going on over there and the unified school district continues to be the second largest employer so high level and those are some of the questions. are there any questions from the demographics report? >> just a point of clarification. i would not

characterize the community college district as unstable. i think they're on the public record. the question is the accreditation standing of the college so we have no comment on that other than the impact of what it may have done for health plan participation. >> i stand corrected. thank you. >> just to clarify. thank you. are there questions from the board on the demographic report? any points of discussion? any public comment on the report? this is the discussion item. >> claire. i want to thank both marina and rosemary for this outstanding report. i think it's very helpful to our various retiree organizations as well to get a better handle on where our members might be as well as where the health service board members are and i think

that this is always very helpful and it's beautifully put together and i wanted to thank everyone for their hard work. >> thank you. i think i speak on behalf of the board also there are a couple of documents i think we should be carrying with us as we go through and this is obviously one of them. not only the process of rates and benefits but as a reference pieces, and i would commend that to those that are looking at this presentation to look at this particular item, the annual report as a way of kind of maintaining point of continuity along with the other more substantive items in the director's report as well. we're ready to proceed to the next item. >> item 19 discussion item report on network and health plan issues if any. >> i would imagine that we will have -- since the director -- are you from blue shield? >> [inaudible] >> all right. thank you. i was going to ask that you come

first. we're at the center of the storm here so please identify yourself. >> we will. chris perrareace and adam gunter from blue shield. i want to thank director dodd. she made some really good points about the anthem cyber attack earlier so i apologize if some of the information is redundant but i want to clarify a few points so anthem blue cross is a separate company from blue shield of california. they are currently conducting an investigation to determine the impact and scope of the incident. anthem has confirmed that blue plan members who access care through blue card may be impacted. we don't have any details about the level

of exposure and it's a plan where members can access care outside of california and just a reminder blue shield of california offers a hmo plan to the city and county of san francisco members which means that care outside of the members assigned medical group is generally limited to emergency or urgent care services. and so the final point i want to make is that anthem has committed to providing detailed information of any blue shield member whose data was impacted by the breech and we will keep the board and also director dodd abreast of the situation, but there is no timeline as when we might get that information. >> thank you for those clarifying comments and for the record director dodd talked about this in the prior events with sutter and so forth on

kind of an updated basis so it's been very heartening, the outreach and engagement of you and your team to be as fully disclosive as you are so we're in a position to inform our members and i am sure that won't go unnoticed as we go forward in the partnership. >> thank you. it's also great to work with director dodd's team as well. >> are there questions from the plan representatives? okay. thank you. are there other plan representatives who wish to come forward? >> hi good afternoon. kate kesler. vice president for strategic accounts for kaiser permanente. a couple of labor updates. last time i visited you we notified you of a strike union. that strike did happen and a seven day strike. it went

through that. it's ended. everybody is back to work. no agreement has been reached however and we are working with them and hope to reach an agreement in the future -- >> can you give me clarification. what does it stand for? >> national union of health care workers and represent about 2600 workers in northern california. >> thank you. >> one other update we did reach a three year agreement with the california nurses association and that was ratified the end of january so just wanted to let you know that has happened and is in place. okay. >> i am glad you're continuing to work in a labor management way at kaiser permanente. thank you. >> thank you. >> are there other plan representatives wishing to be heard at this time? is there public comment on this item? >> i will make it brief. i

just want to thank chris and adam and their vice president. they came out to us and spoke to all of our members about the blue shield sutter issue. we had a very full meeting and it was really very, very helpful and i wanted to publicly acknowledge their willingness to do so and they're assistance with all of our members. it was quite gratifying so thank you to all of them. >> thank you. any other public comment? item -- >> 20. >> 20, yes. >> item 20 discussion item opportunity to place items on future agendas. >> hearing none. next. >> item 21 discussion item. opportunity for the public to comment on any matters within the board's jurisdiction. >> is there any public

comment? hearing none we will proceed. >> item 22 action item. vote on whether to hold close session for employee evaluation. president scott. >> i will willing to entertain such a motion or action by this board. >> i move that we go into closed session. >> there is a motion. >> second. >> there's a second that we move into closed session for employee evaluation. is there any discussion by members of the board? any public comment? we're ready to vote. all in favor signify by saying aye. >> aye. >> all those opposed? we will now go into >> the governance committee

has completed their session. >> i move that we don't disclose closed session. >> seconded. >> it's been properly moved and second that the discussion of the closed session of the governance committee not be disclosed. any discussion on the motion? hearing none all in favor signify by saying aye. >> aye. >> all those opposed? [gavel] >> well congratulations. how much money did you make from that? >> [inaudible] >> well the question is are we ready to move -- >> [inaudible] >> is that off? >> okay. we're now ready to -- we're now ready to adjourn this board meeting and look forward to our next.

>> the program will be continued by the remarks of our special guests. first of all the honorable mayor of san francisco. please welcome our mayor. [applause] >> thank you very much. happy luna new year everyone. [applause] it's my pleasure again to join