This environment enabled the State employee group plan to maintain relatively stable premium rates. Several factors contributed to significant premium increases in 2000. First of all, after three successive years of losses, Maine s managed care organizations shifted their strategies from expanding market share to creating profitability. Purchasers are no longer being quoted rates that understate actual claims experience. A second factor that has impacted premium rates is the dramatic increase in medical payments for the State employee plan in 1999.
Prescription drugs consume a greater share of the plan s medical expenses every year.
Finally, the demographics of the State employee plan contribute significantly to claims experience and plan costs. Not only are the State plan s active employees slightly older than many employers, employees and their family members significantly underutilize preventive care services. A primary objective of the State s managed care plan is to provide easy access for members to obtain annual exams and preventive screenings. One of the reasons that the SEHC selected Anthem Blue Cross Blue Shield as the State employee plan s insurer was the commitment that Anthem made to improving the health of members through health education, disease management, and greater use of preventive services. A priority for 2000-2001 will be to introduce targeted health improvement interventions.