From
Lisa Norris, Human Resources Director
Title
Insurance Fund Monthly Review
Presenter
Ashley Land, Human Resources Manager
Recommended Action
Review Only
Analysis
This analysis covers the experience in the Employee Insurance Fund through October 2015:
Employee Insurance Fund Summary (Attachment, page 1):
The insurance fund is off to a good start for the 1st month of the fiscal year as you can see in Column 2, noting October's numbers. There is nothing notable in revenues at this time. In expenses, you will see in rows 28 and 29 that active and retiree claims are both off to a good start, with actives coming in at $848,650 and retirees at 226,671, both beneath the running 12-month running averages shown in column 5. The year-end projection is only a guess this time and reflects the current month, plus 11 months at the higher "Running 12-month Avg" numbers for actives and retirees. We always use the higher of the two averages (column 4 vs column 5) to project worst case scenario.
Another item to note is that the IBNR (Incurred But Not Reported) actuarial estimate has been completed for fiscal year-end 9/30/15. IBNR takes into account roughly 45 days worth of claims (medical and prescription costs) that we are to "hold" as a reserve. We estimate this every year and modify as needed. We use this number received for the fiscal year-end to modify the current fiscal year's IBNR which was projected at $1,339,643 (column 3, row 45) from $1,303,511 in the past. This actuarial study was completed December 4, 2015 by Holmes Murphy. We have notified the Budget Office as well. This uptick in IBNR is primarily associated with the higher retiree claims we have seen.
UHC Information (Attachment, pages 2-4): Slide 2 - "Claims Per Member Per Month" - provides a nice picture of the year showing flattening overall for claims since early 2014, other than the brief spike that occured in Sept/Oct 2014. On slide 3, "Number of Claims Based on Size," you see ...
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