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 July 2018:
Employee Insurance Fund (Attachment 1):
July closed strong with active claims (row 32) only reaching $757,569 - falling well beneath both the Fiscal Year Monthly Claim Average (column 13) of $1,043,563 and the Running 12-month Claim Average (column 14) of $1,076,534. Active claims had slowly increased since March, but fell off significantly for July from the prior months. With this low month coming in, active claims are only expected to reach about $12,588,697 by year-end which is only 86% of the budgeted amount. Retirees ran high in July reaching $288,983, surpassing both the Fiscal Year and Running 12-month averages. However, retirees are also still projected to only reach about 74% of the budgeted amount, with a year-end projection at $2,842,322. This excellent claims experience allows us to predict a healthy operating balance of $4,427,985 (column 18, row 41) at fiscal year-end. With this strong year-end balance, we are replenishing the previsouly depleted "Reserves for Contingency" to $3,000,000 thereby reducing the Ending Resource Balance accordingly.
There are no UHC slides to report this period due to some turnover on our Account Executive, but we will have updated slides next month.
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.