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Committee hears claims-volume growth is main driver of rising costs; staff to report on repeat claimants
Summary
The actuarial team told the committee that higher incidence rates (more claims per eligible population) and wage growth are the primary drivers of projected cost increases; staff said benefits team and Aflac are assembling data on individuals with multiple claims for next month's meeting.
Committee member Melissa Gibran asked specifically how much of the higher projected cost stems from increases in claim incidence and how many individuals are filing multiple claims. Melissa said she wanted data "before we even consider going back to the taxpayer and asking them to increase a payroll tax."
Harindra replied that the number of claims increasing is a significant driver and that wage growth — which increases benefit amounts — also contributes. Staff reported that John and the benefits team are working with Aflac to pull data on individuals with multiple claims and expect to provide that analysis next month. The committee discussed using those data and sensitivity runs when evaluating policy options later this year.
