Agenda - Council Work Session - 02/23/2016

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METROPOLITAN COUNCIL SELF-INSURED BENEFIT PLANS MEDICAL HEALTH PLAN The Council began self-insuring its medical plan benefit for employees and retirees in 2013. Plan activity is recorded in an internal service fund. Operating divisions budget and pay monthly premiums to the internal service fund and medical claims and fees are paid from the fund. Premium revenues include both an employer and employee/retiree share as established in bargaining agreements. The total premium rate charged in 2013 remains flat into the 2015 budget. Total premiums are intended to cover overall plan costs and establish a reserve to provide rate stabilization and protect against unforeseen claims or plan expenses that may exceed annual revenues in a given year. 2013 RESULTS AND FINANCIAL PLAN Enrolled members increased by 5% for 2013 for a total of 9,082. Plan performance exceeded the financial plan for 2013. Two primary factors contributed to favorable plan performance: 1) premium revenues reflected higher than anticipated enrollment, and 2) our claims experience was below the medical trend rate. The financial plan anticipates addition to reserves through 2015. Total premiums per employee remain flat while plan costs are anticipated to grow by 7% in future years. Revenues Expenses Reserve Additions ACTUAL 2013 $68 $55 $13 FINANCIAL PLAN 2013 $64 $57 $7 FINANCIAL PLAN 2014 $68 $61 $7 2015 $68 $64 $4 DENTAL HEALTH PLAN Plan activity for our dental self-insured plan is also recorded in the internal service fund. 2014 was the first year this plan was self-insured. The financial plan anticipates annual premiums will cover overall costs with a small addition to reserves 2014-2015. Plan costs are anticipated to grow by 4% in future years. Financial Plan Revenues Expenses Reserve Additions MILLIONS 2014 $4.6 $4.4 $0.2 2015 $4.9 $4.7 $0.2 F-1