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Aon: IBNR and contingency reserves largely stable; Blue Shield processing change and UHC population growth drive movement

San Francisco Health Service System Board · January 10, 2019
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Aon presented incurred‑but‑not‑reported (IBNR) and contingency reserve calculations as of 06/30/2018. Blue Shield pharmacy processing reduced claim lag and IBNR needs, while UnitedHealthcare City Plan growth increased IBNR; contingency reserves are projected to rise ~4.4% overall.

Mike Clark of Aon presented the annual reserves report that covers incurred‑but‑not‑reported (IBNR) and contingency reserve calculations as of June 30, 2018. He described three plan buckets used for calculations: Blue Shield of California flex-funded plans (Access Plus and Trio combined), the UnitedHealthcare City Plan (active employees and…

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