State employees' and officials' group insurance-membership. |
14LSO-0087.C1 |
FISCAL NOTE
Source of revenue increase: BOCES entity employer and employee contributions towards State plan premiums
Source of Expenditure Increase: Increased medical claims, dental claims, life insurance premiums and spending account utilization as BOCES entities elect to enroll in the Wyoming State Employees’ & Officials’ Group Plan.
Assumptions:
There are 20 BOCES organizations in Wyoming with a total employee base of approximately 220. The assumption utilized is that 20% of the BOCES with employees (44 employees) could enroll in the State’s benefit plans in the first biennium. Community rated premiums would be collected from the entities to support the anticipated increased costs.
The individual medical composite monthly claim factor is $1,266.69 for 2016 and $1,393.36 for 2017. The individual dental composite monthly claim factor is $58.98 for 2016 and $63.69 for 2017. Average age is anticipated to be 54 for life insurance purposes. Individual annual composite factor for flex benefits is $191. The assumption is that utilization will be at the group average. However, actual claim utilization can be much higher or lower in any given year. No fiscal year impact is anticipated for 2015 due to the learning curve for entities in the first year, coupled with the 120 day notice prior to enrollment and the claims payment lag inherent in self-funded programs.
Any influx of entities and members will have impact on 0200 series supportive services costs in addition to increased claims and premiums paid. The Employees Group Insurance division feels this can be absorbed within current spending authority allocation.
Prepared by: Dean Temte, LSO Phone: 777-7881
(Information provided by Ralph Hayes, Employees Group Insurance; 777-5440)