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 March 2020:
Employee Insurance Fund (Attachment 1):
The insurance fund has two quarters now closed. Revenues continue to run steady and are projecting in all areas at/around 100% of budget. A couple of notable items in the fund since we haven't reviewed it every month are as follows:
1) Column 5, Row 21 ($21,507): A large part of this unusually high expense, as compared to normal, is a miscellaneous service fee we pay one time each year for a vendor to report to the federal government the hours worked for every part time or seasonal employee employed during the year.
2) Column 5, Row 22 ($210,382): The bulk of this particular month's cost ($192,398) was due to "Run-Out" fees owed to United HealthCare to pay claims for the remainder of 2020 as they trickle in. The bulk of claims will hit between January - March as normal, with additional adjustments received the remainder of the year from hospital audits, pharmacy audits, etc.
3) The zeroes showing in March (column 5, rows 27 and 30) are just due to transitioning to telecommuting during this COVID experience, so we paid them in April instead of March.
4) Active claims look low for February and March which is fairly normal following a peak in January, however, you also have surgeries being postponed by the COVID-19 orders for hospitals. We may or may not see an uptick in these surgeries once that restriction is lifted. Financial situations with individual families who may have lost income could deter such surgeries longer due to deductibles and coinsurance requirements early in the year.
With all of these notations, we are still projecting to end the year with expenses falli...
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