From
Lisa Norris, Human Resources Director
Title
Ordinance amending the FY 2016/2017 Employee Insurance and Risk Management Fund Operating Budgets
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
Employee Insurance Fund Summary (Attachment, page 1):
The Insurance Fund Operating budget requires an amendment due to various changes to revenues and expenditures projected through year-end as of June 6, 2017. Revenues increased by a net $103,186 from $19,420,308 approved to $19,523,494 projected resultant from various increases/decreases in employee and retiree contributions for medical, dental and vision insurance, as well as some miscellaneous reimbursements received this year. Reserves are projected to increase by $211,396 resultant from an additional "transfer in" from the Risk fund.We self-insure stoploss and reimburse ourselves from the Risk Fund Stoploss Reserve for any claimant who exceeds $400,000 in paid claims during the prior calendar year. This claimant reached $1,411,396 in total claims paid. We originally projected a reimbursement of $800,000 but are due $1,011,396 ($1,411,396 minus the $400,000 self-imposed stoploss deductible). The changes above increase Total Resources by $314,583 to $24,918,377. Expenditures increased by a net $934,405 to $20,669,560 resultant from substantial increases in active medical claims, along with minor increases in dental PPO costs, Health Care Reform fees, and miscellaneous costs, as well as minor savings in retiree medical claims, administrative fees and one-time costs. A summary of changes is reflected on the first page of the attachment. These expenses resulted in a "Total Appropriations" change of $965,405 to $20,709,560. All in, the Ending Resources are reduced by $620,823 to $1,742,470.
Risk Fund (Attachment, page 2):
The Risk fund is being modified as well. Revenues increased by $197,690 from $2,785,471 to $2,983,161 due to higher than expected property subrog...
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