RD319 - Report on the Impact of Renewal Cost on Employee and Employer Premiums for Fiscal Year 2015


Executive Summary:
This report is submitted as required by Item 81.G. of Special Section I, 2014 Virginia Acts of Assembly which states:

"The Department of Human Resource Management shall report to the Governor and Chairmen of the House Appropriations and Senate Finance Committees, by October 15 of each year, on the renewal cost of the state employee health insurance program premiums that will go into effect on July 1 of the following year. This report shall include the impact of the renewal cost on employee and employer premiums and a valuation of liabilities as required by Other Post-Employment Benefits reporting standards."

Summaries of Rating Projections

The following information summarizes the renewal cost of the state employee premiums for fiscal year 2016 that will go into effect on July 1, 2015, and the key drivers of FY 2016 projections compared to the FY 2015 rates.

The next three charts below provide summaries of rating projections for FY 2015 through 2017. The first chart shows FY 2015, and provides an early estimate of how actual costs will compare to projected costs. This analysis provides an important basis for projecting rates for FY 2016. Scenario A establishes the most aggressive projection, Scenario B the most likely projection, and Scenario C the most conservative projection.