Page 155 - N. Richland Hills General Budget

OVERVIEW OF THE SELF INSURANCE FUND

The Self-Insurance Fund is an internal service fund established July 27, 1987. This fund pays for city-wide
expenses related to medical coverage for employees, retirees and dependents, workers’ compensation
coverage, property and casualty coverage, life insurance and all administrative expenses associated with the
City’s self-insurance program. Revenues come from charges to other City funds, employee and retiree insurance
premiums, and reimbursement from insurance carriers such as medical stop loss or for property losses.

The total Self-Insurance Fund budget for 2020/2021 is $15,904,795 Of the total, 85.8% is for health and medical
expenses including prescription costs, 3.2% for personnel expenses, 3.2% for workers’ compensation expenses,
and 3.7% for other insurance related expenses.

FY 19-20 has been an unprecedented year. With the COVID-19 pandemic shutting down the U.S. economy
beginning in March 2020, the healthcare industry was severely impacted. For most of the 2020 calendar year
elective procedures were not allowed or restricted. As a result, the City’s health insurance expenses finished
significantly under budget for FY 19-20. All savings will be transferred into the City’s self-insurance reserve
account.

We believe the COVID-19 pandemic will continue to have a significant impact on the healthcare industry in FY
20-21; therefore, we did not budget any increase to the City’s or our employee’s contribution for FY 20-21. We
are also not proposing any plan design changes.

The City will continue to monitor our health insurance expenses as well as the overall state of the health
insurance industry and will take appropriate action with regards to the City’s self-insurance fund should the need
arise. In addition, we will continue to emphasize to our employees the importance of making healthy life-style
choices and encourage participation in the City’s wellness initiatives which include, skin cancer screenings,
biometric screenings, a weight loss and fitness program, health and benefits fair, and annual flu shots for
employees, retirees and dependents.

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