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 2018:
Employee Insurance Fund (Attachment 1):
February closed with our lowest claims month of the fiscal year for for both active and retiree claims, reaching only $828,414 (column 6, row 32) and $124,394 (row 33) respectively. I believe this may be an initial indication as previously discussed, of the impact of moving to two plans, and with our high enrollment in the High Deductible Health Plan between both retirees and actives. What this means long term, is we should begin to see claims start ticking up as we progress later in the year when deductibles begin to get met and the plan starts paying more. Additionally, revenues from both Active and Retiree contributions are also up with actives averaging about $3,000 more per month and retirees about $10,000 more per month (January and February 2018) over last year's premiums (October through December 2017). For projections (blue column), we still are using worst case from a claims perspective for both actives and retirees, putting us at $15.5 million projected by year-end on actives, and $3.2 million on retirees. If we experience any more positive months as we did in February at half of the prior month, we will likely come in at or beneath budget by year-end should that trend continue. We will continue to remain cautiously optomistic and see how this fiscal quarter ends once March numbers are in. On the newhire side, we are seeing about 2-3 per month elect the High Deductible Health Plan versus the EPO, so it is interesting to watch this shift. On newhires, the city only contributes a pro-rated amount of the $500/year to the employee.
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