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Board approves actuarial recommendations: 10‑county amount, Blue Shield stabilization allocation and no stop‑loss premium
Summary
The board adopted the Aon Hewitt recommended 10‑county contribution amount ($579.24), approved Blue Shield rate stabilization allocations and voted to forgo stop‑loss coverage for the city plan, citing adequate reserves. Motions passed by voice votes.
The San Francisco Health Service Board on Tuesday approved several actuarial recommendations affecting 2016 rate development and the trust.
Aon Hewitt presented the charter 10‑county employee‑only contribution calculation and recommended a 2016 amount of $579.24 based on an average‑of‑averages of the 10 most populous counties. The actuary walked the board through the numerical methodology and explained that the 2016 figure represented a roughly 2.02 percent increase from last year’s number. The board moved to accept the recommended $579.24 and approved the motion by voice vote.
The board also approved the Blue Shield rate stabilization reserve proposal. The actuary recommended adding $4,485,078 to 2016 rate development and carrying forward $8,970,155 as the amortization balance (reflecting a larger three‑year recoupment schedule for an identified cumulative deficit). The board approved the allocation and carry forward by voice vote.
On stop‑loss coverage for the city plan, the actuary recommended purchasing no stop‑loss premium given the size of the stabilization, contingency and IBNR reserves and because most exposure resides in the Medicare population where very large excess claims are less common. The board accepted the recommendation and voted against buying stop‑loss coverage.
Votes at a glance: - Approval of minutes and consent agenda items — voice vote; approved. - Agenda Item 4: Approve 10‑county contribution $579.24 — motion moved and carried by voice vote. - Agenda Item 7: Approve Blue Shield stabilization allocation ($4,485,078) and carry forward ($8,970,155) — carried by voice vote. - Agenda Item 8: Accept actuary recommendation of no stop‑loss coverage for the city plan — carried by voice vote.
Board materials show the actuary’s underlying calculations and reserve adjustments were the basis for each recommendation; no board member asked for roll‑call tallies during the recorded motions.
