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In response to another comment from Mr. McDonald regarding prescriptions, Ms. Daut indicated there was <br />a State-operated pharmacy purchasing pool created in the last legislative session that was just "getting up <br />and running." She called it an opportunity that had not "presented itself yet." She said it was on the cusp <br />. of being available for public sector employers to be able to purchase drugs through the pool. <br />Mr. McDonald noted that COBRA was driving the trend and asked if it would not continue to drive the <br />actual health care rates upward even though the PERS rate may flatten. Ms. Daut affirmed it would. <br />Ms. Ortiz pointed out that the School District 4J had a wellness model which provided a physician and a <br />first-care facility. She asked how that would fit into the City of Eugene. Ms. Daut responded that the <br />School District 4J had its own clinic and that model did not seem to make sense for the City especially <br />given the geographic spread of City employees' work areas. She added that a clinic would be quite <br />expensive to set up. Ms. Ortiz agreed it would be expensive to set up and asked if it would be possible to <br />contract with the school district for such services. Ms. Daut said she would look into it. <br />Ms. Rygas asked if Health Savings Accounts (HSAs) had been taken into consideration. Ms. Daut replied <br />that staff had discussed HSAs with the Benefits Study Group. She noted that the Ciry of Springfield had <br />implemented a Health Reimbursement Accounts (fiRA) program, which was similar. She said Springfield <br />staff had made a presentation on HRAs to the Benefits Study Group but the Unions were not very excited <br />about such plans. The Unions were open, however, to continuing the discussion on such accounts. <br />Mr. Pape asked if it would be possible to raise the cost of premiums for high risk groups such as tobacco <br />users. Ms. Daut responded that this was not possible because addiction was considered a medical <br />condition and discrimination based on a medical condition was illegal. <br />Mr. Mulligan thanked Ms. Ortiz for her comments. He said there were other employers who were using <br />the strategy of opening their own clinics. He urged the Ciry to consider doing so or partnering with an <br />organization that had such a clinic, given that the Ciry was going to pay the cost for health care anyway. <br />He thought such a clinic could offer the service at a lower price. <br />The committee adjourned at 8:55 p.m. <br />(Recorded by Ruth Atcherson) <br />J.•IBCMTGI0502071 bc050207draft minutes.doc <br />MINUTES-Eugene Budget Committee February 7, 2005 Page 15 <br />