The Public Employees Benefits Program board approved several vendor‑proposed operational and benefit changes intended to reduce member cost exposure and administrative burdens.

Coupon program: Siegel consultants and UMR described a voluntary medical‑pharmacy coupon program that applies manufacturer coupons to eligible medical‑benefit drugs. Richard Ward summarized earlier analysis: "The annual plan impact is about 1,100,000," and, after a UMR administrative share (25%), the net projected savings to PEP was roughly $840,000 with an estimated $400,000 aggregate reduction in member cost share. Board members asked about program scope, manufacturer restrictions and the rationale for a 25% shared‑savings admin fee; UMR said it will apply coupons where manufacturer rules allow and that the per‑member administrative effort is substantial. After discussion, the board approved implementation on a shared‑savings basis.

Prior authorizations and diagnostic coverage: UMR recommended dropping prior authorization for biopsies due to a near‑100% approval rate; the recommendation was expanded to include MRIs and dialysis. The board approved removing those prior authorizations. The board also voted to treat diagnostic breast imaging and diagnostic colonoscopies as preventive services (covered at 100%) except in the CDHP (where deductible still applies to preserve HSA rules) to remove financial barriers to timely diagnosis.

Network lab education: The board approved a pilot change to pay a member's first out‑of‑network lab in a plan year as if it were in‑network and to provide member education to reduce future non‑network use. Staff noted small net first‑year cost impacts and directed PEP staff and UMR to coordinate outreach and plan‑document updates.

Next steps: Vendors will implement operational procedures and provide follow‑up performance reporting. Staff will update plan documents and member communications to reflect the changes.