Four of 10 Nevada PEBP board members being replaced

Gov. Brian Sandoval’s administration has served notice it intends to replace four of the 10 members on the Public Employee Benefits Program board.

That includes Jacque Ewing-Taylor, longest serving member at 14 years.

Chief of Staff Mike Willden said the governor’s office has been “closely monitoring what’s going on since the latter part of November.”

He said the changes are being made in part because of the inconsistent messages that have been coming from the board as it works to select a new HMO provider and make significant changes to the benefits plan by the end of this year. Selection of the HMO provider has gone back and forth several times and is now, again, out to bid.

A big issue, according to Willden, is the number of members actually attending and voting on issues before the board.

“Many times there are only five or six members voting,” Willden said. “We thought we should have full representation on the board.”

That problem, he said, is the reason why Jeff Garofalo and Bob Moore were asked to leave the board. Garofalo, he said, had been unable to attend more than half the meetings because of the workload at his law office. He said Moore, too had attendance problems in addition to numerous times he had to recuse himself from voting on something.

Those two, Willden said, filled the risk-management slots on the board.

Tom Verducci, who was Massmutual’s representative on the deferred compensation board, will fill Moore’s seat. He said the name of the person filling Garofalo’s seat will be announced after she clears the background check, probably later this week.

“We’ve got to have people who aren’t conflicted and can attend,” Willden said.

Ewing-Taylor pointed out she was the only person recommended by the employee groups at NSHE and that, by statute, the governor is expected to fill that seat with some one recommended by the system.

But under the law, Sandoval doesn’t have to.

Chris Cochran, a UNLV professor who has been representing local government, will move into Ewing-Taylor’s slot, maintaining the university system’s representation. Willden said Cochran was recommended by the faculty senate heads of both the University of Nevada, Reno and UNLV when originally appointed.

“We just moved him into the right slot,” Willden said.

Judy Saiz, who was representing retired state workers, will be replaced by Leah Lamborn, who formerly served as fiscal manager for Nevada Medicaid.

Willden denied the Sandoval was “stacking the board” with some ulterior motive in mind. He said changes were needed because the governor’s office, employees and vendors were “not getting a consistent message from the board.”

“We’ve heard a lot from vendors over the last six months,” Willden said. “They’re pretty frustrated with the board. They feel like they haven’t been treated very fairly.”

He said there also has been concern about the apparent conflicts between the board and Damon Haycock, the executive director they, themselves, selected.

With major changes in providers facing the board this calendar year, Willden said, “it’s the governor’s position we want to get a fresh set of eyes in early.”

“Our concern is to get the best benefits for employees and retirees at the best price,” Willden said.

The next PEBP board meeting is set for May 19.