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 February 2017:
Employee Insurance Fund Summary (Attachment 1):
February came to a close with another positive Operating Balance (Column 6, row 40) and cumulative balance in the black! February claims reached just over one million and were beneath both the Fiscal Year monthly average (column 8) and the running 12-month average shown in column 9. Retiree claims for February were the lowest of the year, reaching only $198,594. This projects our active claims year-end estimate to $13,906,232 - right at our budgeted number! Additionally, that projection is using the "running 12-month average" of $1,26,473 for all remaining 7 months, instead of the actual fiscal year monthly average. If we were to use the lower monthly average, our year-end projection would only be $13.1 million. We are using the conservative approach, which is what I recommend and believe we have agreed to use in the past. With this fiscal year to date estimates, retirees are only expected to reach about 90% of the budgeted number, $3,339,586, by projecting at $3,034,648. Overall, the fund is projected to end in the black by $113,314 at year-end. Let's hope this positive trend continues.
UHC Slides
In the first two months of the new plan year which began January 1, 2017, only 4 claims have gone over $100,000 so far as shown on the UHC attachment, slide number 3. Our high claimant from previous periods is one of those and was expected as reflected in Case 1 on the last slide.
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.