AGENCY RESPONSE

NOTE:  Agency responses submitted on diskette are included on the Legislative Web Site (HTTP://LEGISWEB.STATE.WY.US).      Letters submitted in written form are on file at LSO.

                       November 30, 2000

Senator Jim Twiford, Chairman

Management Audit Committee

Legislative Service Office

213 State Capitol

Cheyenne, WY 82002

Dear Senator Twiford:

     On behalf of the Wyoming State Employees' and Officials' Group Insurance Board of Administration (Board), I am responding to your Report on Employees' Group Insurance (EGI).

     The Board is pleased that State Legislators have requested a program evaluation of EGI. As the Employer, the State of Wyoming must be concerned that benefits provided promote the recruitment and retention of quality employees. It is vital that this program be reviewed and changed as needed to function as desired by the Employer.  The Statutes grant to the Board the responsibility to administer the program, which they have, but it does not set forth a process by which the Employer can provide timely direction to the Board on major issues. This evaluation is the beginning of a process that will assist the Board to function, or cease to function, as intended by the Employer.

     All Board members have received a copy of the Program Evaluation Report. Each Board Member was asked to submit their comments to me so that they could be included in my response to you.  Because of the limited time to respond, the Board was not able to meet and discuss the details of the report.

     The Board has no objections to the recommendations made in the report.  One Board Member, Bruce Hooper from the University, suggested that "policy direction" should be of utmost consideration and that decisions with respect to that direction need to be made first and prior to decisions on resources, enhanced expertise and dramatically changing the structure.

     The Board recognizes that decisions on the organizational structure and the major components of the program must be made by the Employer.  The Board also recognizes that the amount that the Employer contributes toward employee benefits is determined by the Employer's total compensation policy and its ability to pay.

     Restructuring the Group Insurance Program has often been considered in the past.  It is appropriate that this issue be addressed and resolved.

     In the meantime, the Board will continue to administer the current program during their elected or appointed term.

     The Board and the staff of Employees' Group Insurance wish to thank the members of LSO staff, who conducted the review, for their courteous and professional approach. 

Sincerely,

Darald Dykeman, Board Chairman

Employees' and Officials' Group Insurance Board of Administration

cc: Board