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 November 2016:
Employee Insurance Fund Summary (Attachment, page 1):
October produced a positive operating month while November showed an operating imbalance of -$120,228 (row 40, columns 2 and 3 respectively). However, overall, we are off to a positive beginning fiscal year with the cumulative to date in Column 4 (grey) showing a positive operating balance. Both active and retiree claims, reflected on rows 29 and 30, column 5, show we are beneath the running 12-month average (column 6, highlighted in red) in both cases. We will watch these costs as the quarter closes for December. Run-off claims will continue to reflect through January, so we won't have an accurate picture of the plan year until February or March following the calendar year claims are processed in full. While year-end projections are very unpredictable at this point, we have used the highest running monthly average for claims (reflected in column 6) to project out the remaining 10 months of claims. This estimates us to come in over the active projection by year-end, but under in retiree expenses.
UHC Information (Attachment, pages 2-4): Slide 2 provides a running projection on "Claims Per Member Per Month" and shows the claims volatility we have had since January 2014 through November 2016 with spikes noted between March and June 2015, October 2015-January 2016 and again in November of 2016. If you look at the green line on that same slide, you can see overall trend is about neutral for the three year period. On slide 3, "Number of Claims Based on Size," we continue to only have the 1 claim exceeding $400,000 and it remains at about $1.2 million for the year. We continue to be on track with roughly the same number of high claimants (those over $100,000) as in the prior 2 years - 21 high claimants in 2014, 24 in 2015 and 20 in 2016 so far. Our highest claimant seems to have flattened a bit on claims recently (claimant #1)on slide 4 based upon the severity of claims reflected during the period from December 2015 through April of 2016, and then July of 2016.
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.