From
Lisa Norris, Human Resources Director
Title
Insurance Fund Monthly and Quarterly Review
Presenter
Ashley Land, Human Resources Manager
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Employee Insurance Fund through the December 2017:
Employee Insurance Fund Summary (Quarter-End) and Monthly Review (Attachment 1-2):
Based upon the Fund Summary shown on Attachment 1, the first quarter of the fiscal year is over and the fund overall has a positive operating balance of $382,077 (Green Column 3, row 56). This is great news to end the plan year. The Active claims year-to-date (green column, row 25) are almost exactly at 25% of budgeted for the quarter end which is perfect. Retiree claims are running at about 28% of budget at quarter-end, so they are a little higher at this point than we would like. Benefit plan design all changed January 1 which should result in reduced claims costs as we enter the next quarter and new plan year. I am interested to see the results which about 25% of our active population and over 45% of our retired population being housed in the High Deductible Health Plan.
On Attachment 2, we can see the detailed month-by-month review of the Insurance Fund. You will note several zeroes in the premiums which will most should be resolved by January and caught up, with the exception of Long Term Disability and Life Insurance. With staff turnover, some system problems that were escalated to resolution with the vendor, and enrollment/communication of all new benefits, billings simply got behind as we tried to determine processes that were not documented, connect with vendors and learn the billing process. Our new Advisor has jumped right in and brought everything current in January with the exception of Long Term Disability and Life Insurance which is currently a system problem being investigated with the vendor. That one may be resolved by the time of this meeting. Using worse case scenarious/projections shown in red in columns 6 and 7 for active and retiree claims, we are only projected to be in a deficit at year-end by about $170,000. I suspect it will be better than that due to the enrollment and claims experience "post-January."
Wellness is off to a strong start this year and new campaigns being developed. The first quarter focus is on getting preventative visits and annual physical examinations done at a Primary Care Physician. Staff continues to stress education for employees on how to reduce their out-of-pocket costs and increase high quality providers through promotion of our health and wellness partners including SurgeryPlus, Compass Concierge services, Doctor on Demand virtual visits and Airrosti for treatment of medical soft tissue injuries.
UHC Slides are attached for your convenience but will not be detailed at this time unless you have questions since these quarterly reviews take a bit longer, and the true impact for this year will come following January.
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.