RD602 - State Employee Health Plan Proposed Premium and Benefit Structure for Fiscal Year 2018
Pursuant to Item 85.F. of Chapter 780, 2016 Virginia Acts of Assembly, this report details the assumptions included in Governor McAuliffe’s introduced 2016 – 2018 budget for the state employee health insurance program. The report includes the provisional premium schedule. It does not incorporate any benefit changes. Consistent with fiscal year 2017 premiums, all premium schedules assume that available premium rewards have been earned by the employee (and spouse). Premiums will be finalized at the conclusion of the legislative process.
Description of Exhibit A - Aon Hewitt Premium Schedule - November 3, 2016
Exhibit A contains the provisional premiums submitted to the Department of Human Resource Management on November 3, 2016, by Aon Hewitt, the health plan’s actuary. These premiums include projected claims expenses, trend between 6.9 to 8.9 %, and inflation. They do not include an incremental increase of $28.5 million for Incurred But Not Reported (IBNR) claims nor do they include a federally mandated plan design change that is expected to cost $1.6 million.
Description of Exhibit B - Department of Planning and Budget Premium Schedule and General Fund Breakout – December 16, 2016
Exhibit B contains the premium schedule and the general fund breakout developed by the Department of Planning and Budget for Governor McAuliffe’s proposed 2016 – 2018 budget. The premium schedule and general fund estimates are consistent with the November 3, 2016 actuarial estimates developed by Aon Hewitt.