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.
Our newest vendor, SurgeryPlus, who offers bundled pricing surgeries from high quality surgeons began being promoted in September 2017. It has been a success with 23 first time callers, 12 cases opened, and 3 cases completed with estimated savings to the plan of $13,941 (small, general surgeries). More cases are in the pipeline of the 12 total, so more may occur.
Ashley Land and her wellness team continue to actively promote healthy choices and a healthy "you." This first quarter was dedicated to preventative wellness. That included:
-The March Health Fair on March 27th to encourage free screenings including cardiovascular, mammography, hearing, and numerous others. Seventy-two vendors signed up to participate, including healthy food trucks.
- The "One Change-One Choice" campaign was our most recent quarterly event encouraging employees to choose one healthy behavior change to submit for the chance to win a FitBit Alta.
- Bathroom posters were updated quarterly and re-educate on current programs, vendors and are targeted to correlate with the quarterly wellness topics.
- Quarter two, beginning in April, will focus on getting up and getting active.
UHC Slides
Interestingly enough, the UHC slides show all but four (4) of our "high claimants" on the last two slides of the UHC attachment had claims of less than $1,000 (all white) for February. Only those four (4) cases with the light blue had claims between $1,000-$49,000 incurred (not paid) during February. Also, five of our top twenty (20) cases have moved off of the plan beginning January 2018.
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.