Each quarter the Joint Health Management Board (JHMB) provides a financial report to each of the employee units represented on the JHMB. This report details the income, expenditures, and financial reserves for the District’s Employee Health Plan as compared to the annual projections.
Below is a summary of the most recent Health Fund Report for the period July 1, 2011 – June 30, 2012. The left column shows the actual performance of the Plan against the projected performance of the Plan (shown in the right column).
July 1, 2011 – June 30, 2012
|
Fourth Quarter Financial Period (Actual) |
Projected Budget Period |
|
| Income |
$116,566,084 |
$113,815,691 |
| Expenditures |
($106,999,059) |
($123,679,363) |
| Surplus (Deficit) |
$9,567,025 |
($9,863,672) |
| Transfer of Reserves |
$0.00 |
$9,863,672 |
| Net Surplus (Deficit) |
$9,567,025 |
$0.00 |
| Encumbered Reserves |
$19,438,426 |
$19,673,809 |
| Unencumbered Reserves |
$15,719,645 |
($3,946,435) |
| Projected Net Fund Balance |
$35,158,071 |
$15,727,374 |
Key Terms
Encumbered Reserves: Part of the Total Reserves amount that includes GASB 45 Liability and a Large Claim Reserve.
- The GASB 45 Liability reserve is mandated by the CBA and is used to cover “Other Postemployment Benefits” (OPEB) relating to providing future retiree healthcare coverage.
- The Large Claim Reserve is maintained by the JHMB to pay for large claims in excess of $750,000 in a 12-month period. This reserve acts in lieu of Excess Liability insurance.
Unencumbered Reserves: Part of the Total Reserves amount and is money available to pay claims in excess of Encumbered Reserves. This reserve covers claim fluctuation and unexpected contingencies, and is available to cover future cost increases to the Plan.
Projected Net Fund Balance (also known as the Ending Fund Balance): Represents the combination of Encumbered and Unencumbered Reserves. This is the amount that represents the Plan’s ability to meet future contingencies and obligations. In addition to the Projected Net Fund Balance as reported above, assets exist to cover the Incurred But Not Reported (IBNR) claims liability reported at $15,853,831 as of June 30, 2012. This is a calculation that is made by the District’s Auditor and represents the liability for claims that have been incurred by participants but have yet to be reported to the claim processing unit.