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HSS CFO reports $92.1M trust balance for FY2018–19; $44.7M in future obligations, Trio claims spike noted
Summary
CFO Pamela Levin reported the trust fund ended FY2018–19 with a $92.1 million balance and $44.7 million of future obligations; she and Aon flagged a July–September spike in large claims for the Blue Shield Trio plan that will be monitored with Blue Shield and account managers.
Pamela Levin, HSS chief financial officer, presented the fiscal year 2018–19 trust fund results and projections through Sept. 30, 2019.
Levin reported the trust ended FY 2018–19 with a balance of $92.1 million, an increase of $14.7 million from the prior year. She listed components of the change including plan‑level movements (for example a $7.1 million increase for Blue Shield Access Plus and a $5.5 million increase for Blue Shield Trio through June), pharmacy rebates, and investment earnings. Levin also said there are $44.7 million in future obligations and reserves against the trust balance, leaving a net available fund balance of approximately $47.4 million after those obligations are carried.
Board members asked about a $12 million decrease in the Trio fund balance during the July–September period. Levin and Mike Clark of Aon explained the change is driven by a small number of very high‑cost claims (individual claims over $1 million) that can spike short‑term plan experience. Clark said these large claims include severe chronic kidney disease cases, cerebrovascular events and other unusually costly cases; stop‑loss and pooling arrangements mean some of the high cost will ultimately be borne by Blue Shield under the plan's large‑claim rules.
Levin summarized projections for the current fiscal year through Sept. 30: a projected fund balance decline to $89.1 million and plan‑level variances (Trio projected to decline due to large claims; Access Plus projected to improve due to rebates and favorable claims experience). She emphasized projections are early (three months of data) and staff will continue monitoring with Aon and Blue Shield.
Next steps: HSS staff will continue to monitor large‑case activity with Aon and Blue Shield and report back as more data are confirmed.
