From
Lisa Norris, Human Resources Director
Title
Insurance Fund Monthly Review
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Employee Insurance Fund through January 2017:
Employee Insurance Fund Summary (Attachment 1):
With the first month of the new plan year, it is positive - showing a balanced month! While only one month..we'll take this positive news while it lasts. January claims reached $1.1 million in January (columm 5, row 29), and retiree claims reached $262,210. This projects our actcive claims year-end estimate to $13,975,786 for actives - right at our budgeted number! Retirees are projected to reach $3.1 million - currently running about 94% of the budgeted amount. On expenses, you can also see our first month of savings on the Administrative fees resultant from our renegotiation with United HealthCare moving the monthly cost from $40,000 to $24,000 per month (row 23). Overall, the fund is projected to be in a deficit of -$73,487 by year-end using these current projections. As a reminder, deductibles increased by $500 on each plan beginning in January, so we may see some claims savings from that plan change as time progresses.
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.