From
Lisa Norris, Human Resources Director
Title
Employee Insurance Fund Monthly Review - Presented by 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 October 2020:
Employee Insurance Fund (Attachments 1-3):
This review covers fiscal year-end 2019/2020 and October's report for the new fiscal year.
1) Attachment 1 reflects fiscal year-end 2019/2020 as of September 2020. The fund remained in a positive operating balance of $970,596 (column14, row 37) as of September 30, 2020 even following the withholding of two months of active city contributions and retiree city contributions (columns 12 and 13; rows 2 and 3). Revenues held to 89% of the budgeted amount as projected and expenses also ended the year at 89% of budget. With COVID, it has been an interesting year since February of 2020 due to all COVID related treatment, testing, any virtual visit and specialist visit covered at 100% by the plan to follow the "book of business" from Blue Cross Blue Shield of Texas clients. Further, we saw a freeze on elective surgeries (non-essential/crucial) for several months. The 100% coverage remains through December 2020 and will likely end on January 1, 2021 - moving copays, and conisurance back to normal plan provisions.
2) As to the new fiscal year beginning in October (column 2) shown in Attachment 2, the plan experienced a positive operating balance of $561,459 (row 38) with active claims hitting at $835,899 (row 28) and retirees reaching $164,649. Both of these monthly expenses ran beneath the rolling 12-month average shown in column 4 as highlighted in pink. This year, we have increased the Contingency Reserve again by $1 million, thereby moving it to $6,000,000. This Contingency Reserve is not required, but is done so out of an abundance of caution and our conservative approach to fundi...
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