Skip to content
March 29, 2012 / jimnv

PEBP Decisions – Phase One

Good news! The Board generally agreed the excess reserves, they now call the  “unrestricted surplus” should be given back to participants but that it be done over two years. They discussed many options and are now focusing on HSA/HRA’s as a way to do this.

So far, they approved:

Coverage for domestic partners.

Increasing the State base subsidy percentage for the primary insured in the base plan from 91.0% to 93.0% for active employees; and 61.0% to 64.0% for retirees.

Keeping the PPO and HMO subsidies the same with no change in the subsidy differential.

After making these decisions, Jim Wells, the Executive Director said he could more accurately “run the numbers” in time later this afternoon. The Board reconvenes at 2 pm to make the final decision.

It seems all PEBP participants including medicare retirees in the “exchange” will get  some of the surplus. There was also discussion about giving extra for those who have more than 20 years of service and are 45 and over!

Note:

The “Incurred But Not Reported” (IBNR) account with $34.5 million and the Catastrophic reserve account with $ 35 million with are adequately funded and the remaining, “unrestricted surplus” can and should be returned to participants.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: