From
Lisa Norris, Human Resources Director
Title
Insurance Fund Monthly Review - Lisa Norris, Human Resources Director
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Employee Insurance Fund through December 2018:
Employee Insurance Fund (Attachment 1):
The insurance fund experienced another positive month for December 2018, completing the first quarter of the fiscal year. Revenues remain very consistent. From an expenses perspective, active claims (row 32) reached $1,078,635 for December, while retirees reached $211,755. With this first quarter coming to a close, the fund continues a strong performance, with each monthly remaining "in the black." With no major changes made for Janaury 2019 benefit plans and few headcount changes, the current trend may lead to another positive year of rebuilding reserves, stoploss reserves and the Ending Resource Balance. Continuing at the current pace, active claims year-end projections (row 32, blue column) indicates we would only run at about 81% of the budgeted amount and retirees are even lower at 72% of budget projected (row 33, blue column). This would create a projected operating balance at year-end of $5,052,849 (row 41, blue column). Per United Health Care, our highest claimant was at $414,000 paid as of November 2018 and only increased an additional $4,000 in December to hit $418,871 for the Calendar Year. The next closest claimant is only at $192,812, nowhere near our $400,000 self-proclaimed stoploss limit. As a result, with a healthy fund balance, I would recommend no reimbursement to the fund from the stoploss fund for the amount over $400,000 for the high claimant ($18,871). This can easily be absorbed by the fund in its current state.
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