Self-Funded Insurance

Transcription

1 SELF-FUNDED INSURANCE FUND 476 Self-Funded Insurance The fund accounts for risk financing activities. Revenue comes from the Tort Immunity Fund to cover costs relevant to the County s General Corporate Fund departments; and from billings to various County Special Revenue Funds to cover their representative share of cost. The Self-Funded Insurance Fund provides financing for the County s auto liability and property, general liability, unemployment and worker s compensation claims payments, and for stop-loss insurance premiums for auto, liability, property, unemployment and workers compensation. BUDGET HIGHLIGHTS In FY1986, the county established a self-funded worker s compensation insurance plan which was accounted for in the Tort Immunity (Special Revenue) Fund through FY1992. In FY1993, the County created a separate internal service fund the Self-Funded Insurance Fund, and moved self-funded worker s compensation to that fund. The County also began self-funding liability and auto insurance in FY1994 through the Self-Funded Insurance Fund. The billings to various funds for the self-funded portion of worker s compensation, unemployment, liability and property are based upon projections provided through an actuarial study documenting the County s Loss Reserve and Funding Analysis. The Self-Funded Insurance Fund has experienced revenue in excess of expenditure from FY2007 through FY2016. This results from the fact that actual claims paid have been lower than budgeted for based on the actuarial report, and thus billings to the outside funds based on the actuarial estimates and worker s compensation rates had generated revenue in excess of actual expenditure. It is estimated with the FY2016 budgets that there will be stabilization wherein expenditures are expected to more closely match actual revenues resulting in stabilization of the fund balance. The Self-Funded Insurance Fund is in a combined fund with Tort Immunity Fund which had a fund balance deficit of $1.7 million at the end of FY2014. That negative fund balance stabilizes after FY2014 and sees gradual improvement with the FY2015 and FY2016 budgets now projected to be at a $1.63 million deficit at the end of FY2016. (For greater detail, see the Tort Immunity Fund Budget Document.) 595

2 Self-Funded Insurance The combining of the Self-Funded Insurance Fund and the Tort Immunity Fund provides the ability of the fund balance surplus in the Self-Funded Insurance Fund to absorb the fund balance deficit in the Tort Immunity Fund. The combined fund balance of the two funds (Self-Funded Insurance Fund and Tort Immunity Fund) was at $2.65 million at the end of FY2014, and is projected to be at $3.15 million at the end of FY2016. $2.5 million is an appropriate balance for the County s Self-Funded Insurance Program to ensure capacity to fund its obligations moving into the future. The following chart depicts the combining of revenues and expenditures for the Tort Immunity Fund and Self-Funded Insurance Fund, exhibiting the actual cash balance available for Self-Funded operations. Fund 476 Summary PROPERTY/LIAB INS BILLING $830,296 $1,102,229 $1,102,229 $1,235, WORKERS COMP INS BILLINGS $912,758 $1,176,444 $1,086,816 $1,198,258 FEES AND FINES $1,743,054 $2,278,673 $2,189,045 $2,434, INVESTMENT INTEREST $2,027 $0 $2,000 $2, INSURANCE CLAIMS REIMB $1,135 $0 $0 $ OTHER MISC. REVENUE $9,617 $0 $0 $0 MISCELLANEOUS $12,779 $0 $2,000 $2,000 REVENUE TOTALS $1,755,833 $2,278,673 $2,191,045 $2,436, WORKERS' COMPENSATION INS $192,783 $222,946 $213,646 $234, WKRS COMP SELF-FUND CLAIM $613,623 $649,239 $649,239 $873, WKRS COMP 3RD PARTY ADMIN $1,750 $0 $0 $0 PERSONNEL $808,156 $872,185 $862,885 $1,107,

3 Self-Funded Insurance Fund 476 Summary STATIONERY & PRINTING $54 $350 $0 $0 COMMODITIES $54 $350 $0 $ AUDIT & ACCOUNTING SERVCS $0 $11,000 $4,500 $ ATTORNEY/LEGAL SERVICES $128,482 $95,000 $94,396 $95, COURT REPORTING $0 $0 $604 $ INSURANCE $534,018 $623,150 $600,000 $654, PROPERTY LOSS/DMG CLAIMS $39,585 $35,000 $20,000 $35, DUES AND LICENSES $605 $750 $600 $ CONFERENCES & TRAINING $0 $500 $0 $ AUTO DAMAGE/LIAB CLAIMS $81,982 $76,298 $76,298 $75, GENERAL LIABILITY CLAIMS $6,224 $260,749 $200,000 $353,091 SERVICES $790,896 $1,102,447 $996,398 $1,212, TO GENERAL CORP FUND 080 $17,398 $12,130 $12,130 $18,555 INTERFUND EXPENDITURE $17,398 $12,130 $12,130 $18,555 EXPENDITURE TOTALS $1,616,504 $1,987,112 $1,871,413 $2,338,815 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $4,369,195 $4,688,827 $4,786,122 The fund balance goal is $2,500,000 to allow for appropriate cash flow and adequate funding for unanticipated claims. As stated above, the actual ending fund balance projection for FY2016 is $3.15 million when the Tort Immunity Fund deficit is absorbed by the Self-Funded Insurance Fund actual balance. 597

4 PROPERTY LIABILITY INSURANCE Property Liability Insurance The Property Liability Insurance budget receives revenues and appropriates expenditures for the County s property and liability self-funded claims, and for stop-loss insurance premiums. Fund 476 Dept PROPERTY/LIAB INS BILLING $830,296 $1,102,229 $1,102,229 $1,235,852 FEES AND FINES $830,296 $1,102,229 $1,102,229 $1,235, INSURANCE CLAIMS REIMB $1,135 $0 $0 $ OTHER MISC. REVENUE $9,617 $0 $0 $0 MISCELLANEOUS $10,752 $0 $0 $0 REVENUE TOTALS $841,048 $1,102,229 $1,102,229 $1,235, AUDIT & ACCOUNTING SERVCS $0 $5,500 $4,500 $ ATTORNEY/LEGAL SERVICES $128,482 $95,000 $94,396 $95, COURT REPORTING $0 $0 $604 $ INSURANCE $534,018 $623,150 $600,000 $654, PROPERTY LOSS/DMG CLAIMS $39,585 $35,000 $20,000 $35, DUES AND LICENSES $605 $750 $600 $ AUTO DAMAGE/LIAB CLAIMS $81,982 $76,298 $76,298 $75, GENERAL LIABILITY CLAIMS $6,224 $260,749 $200,000 $353,091 SERVICES $790,896 $1,096,447 $996,398 $1,212, TO GENERAL CORP FUND 080 $6,055 $5,782 $5,782 $5,782 INTERFUND EXPENDITURE $6,055 $5,782 $5,782 $5,782 EXPENDITURE TOTALS $796,951 $1,102,229 $1,002,180 $1,218,

5 Worker s Compensation Insurance WORKER S COMPENSATION INSURANCE The Worker s Compensation Insurance budget receives revenues and appropriates expenditures for the County s worker s compensation self-funded claims, and for stop-loss insurance premiums. Fund 476 Dept WORKERS COMP INS BILLINGS $912,758 $1,176,444 $1,086,816 $1,198,258 FEES AND FINES $912,758 $1,176,444 $1,086,816 $1,198, INVESTMENT INTEREST $2,027 $0 $2,000 $2,000 MISCELLANEOUS $2,027 $0 $2,000 $2,000 REVENUE TOTALS $914,785 $1,176,444 $1,088,816 $1,200, WORKERS' COMPENSATION INS $192,783 $222,946 $213,646 $234, WKRS COMP SELF-FUND CLAIM $613,623 $649,239 $649,239 $873, WKRS COMP 3RD PARTY ADMIN $1,750 $0 $0 $0 PERSONNEL $808,156 $872,185 $862,885 $1,107, STATIONERY & PRINTING $54 $350 $0 $0 COMMODITIES $54 $350 $0 $ AUDIT & ACCOUNTING SERVCS $0 $5,500 $0 $ CONFERENCES & TRAINING $0 $500 $0 $0 SERVICES $0 $6,000 $0 $ TO GENERAL CORP FUND 080 $11,343 $6,348 $6,348 $12,773 INTERFUND EXPENDITURE $11,343 $6,348 $6,348 $12,773 EXPENDITURE TOTALS $819,553 $884,883 $869,233 $1,120,

6 Employee Health Insurance Fund EMPLOYEE HEALTH INSURANCE FUND This internal service fund receives revenues comprised of employer and employee contributions, and appropriates expenditures for administration of the County s group health insurance plans. Fund 620 Dept INVESTMENT INTEREST $70 $0 $0 $ GIFTS AND DONATIONS $200 $0 $0 $ EMPLOYEE CONTR-HTH ALLIAN $1,321,850 $1,575,392 $1,478,750 $1,518, MUNICIPALITY CONTRIB. $4,967,458 $5,014,711 $4,709,881 $5,326, OTHER MISC. REVENUE $147 $0 $0 $0 MISCELLANEOUS $6,289,725 $6,590,103 $6,188,631 $6,845,427 REVENUE TOTALS $6,289,725 $6,590,103 $6,188,631 $6,845, EMPLOYEE HEALTH/LIFE INS $5,924,822 $6,172,658 $5,591,700 $4,640, HLTH INS CLAIMS/DEDUCTBLS $245,552 $296,760 $292,620 $1,404, FLEX SPENDING ACCT FEES $45,805 $38,600 $37,713 $38, BENEFITS MANAGEMENT FEES $50,000 $50,000 $50,000 $50, HLTH CARE REFORM FEES/TAX $1,272 $0 $0 $0 PERSONNEL $6,267,451 $6,558,018 $5,972,033 $6,134, STATIONERY & PRINTING $36 $50 $0 $ OFFICE SUPPLIES $289 $0 $0 $0 COMMODITIES $325 $50 $0 $ AUDIT & ACCOUNTING SERVCS $14,757 $0 $0 $15, FACILITY/OFFICE RENTALS $280 $350 $280 $ BUSINESS MEALS/EXPENSES $495 $650 $495 $ CONFERENCES & TRAINING $50 $0 $0 $0 SERVICES $15,582 $1,000 $775 $16, TO GENERAL CORP FUND 080 $29,871 $31,035 $31,035 $31,035 INTERFUND EXPENDITURE $29,871 $31,035 $31,035 $31,035 EXPENDITURE TOTALS $6,313,229 $6,590,103 $6,003,843 $6,181,151 FUND BALANCE FY2014 Actual FY2015 Projected FY2016 Budgeted $23,179 $207,967 $872,

7 Employee Health Insurance Fund The Fund Balance Goal is $1,000,000 to enable the County to consider self-funding of health insurance at some point in the future. The change in Fund Balance in FY2016 is the result of aggressive budgeting of employer contributions in several of the County s funds based on original anticipated premium rate increases of 12%, which actually are now anticipated to be only 3%. 601