From
Lisa Norris, Human Resources Director
Title
Employee 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 January 2019:
Employee Insurance Fund (Attachment 1):
The insurance fund experienced a tough month in January, completing the first month of the new plan year. Revenues remain very consistent. Our operating balance for January (revenues minus expenses) is negative this month for the first time in the fiscal year. This is primarily due to active claims reaching $1,648,355 with is 76% of the expenses for the month. Likely, this is primarily composed of December claims hitting and being paid in January with deductibles being met and procedures completed. Last fiscal year, January was the 2nd highest claim month and also reach $1.6 million. Beyond that, January claims in fiscal year 2016/2017 hit $1.1 million (8th highest month in that fiscal year) and in 2015/2016 hit $1.4 million (5th highest month of that fiscal year). Using current and prior numbers, I am not alarmed. We will continue to watch the new plan year, but expect claims to drop back down. However, using worst case projection (blue column, row 32), this moves projection by year-end to $14,451,024, 92% of budget. This would create a projected operating balance at year-end of $3,093,292 (row 41, blue column).
2018 Benefit Analytics (Attachment 2)
Human Resources just completed our analytics for calendar/plan year 2018. I thought you would enjoy the analytics related to benefits and retirees, rather than just the normal UHC slides. They are attached for your review.
Financial Consideration
The current budget is approved and no financial consideration is necessary at this time until additional claims data based on future months can be reviewed.