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Officials warn insurance fund balance may be insufficient as catastrophic claims rise
Summary
Town staff reported the insurance fund balance equals about 0.86 months and catastrophic claims have used 53% of the stop‑loss limit this year, raising concerns about whether reserves will cover historically high May–June claims.
Mary Jane told the board the town’s estimated fund balance had been understated in recent months and is now showing roughly 0.86 months remaining. She warned that May and June in prior years showed claim months of more than $2,000,000 and that, if spending follows that pattern, the current fund balance could be exhausted.
"You'll note ... both of them over $2,000,000. If we trend in that same direction, then the money that we have left in our fund balance will be eaten up," Mary Jane said. She also reported catastrophic claims on the town’s stop‑loss are at 53% this year, compared with the teens in prior years, and described the March claims figure in the transcript as "1.3" (the record does not specify the units).
Board members expressed concern and discussed forming a cross‑board insurance subgroup; members noted anticipated pharmacy rebate receipts could alter the net claim picture. The board did not take formal fiscal action during the meeting but flagged the insurance fund as an action item for follow‑up.
