Actuarial reporting for OPEB, SEC, VEBA reserve statements, COBRA rates

Reporting is an increasing burden for all plans. Our Actuaries can help with the required reporting.

Reporting is an increasing burden for all plans. Self funded plans have obligations for producing IBNR estimates for finance, COBRA rates for employee notices, trusts, VEBA’s, government plans and others need calculations created, or at a minimum endorsed by a member of the American Academy of Actuaries.

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“Statement 45 was issued to provide more complete, reliable, and decision-useful financial reporting regarding the costs and financial obligations that governments incur when they provide postemployment benefits other than pensions (OPEB) as part of the compensation for services rendered by their employees. Postemployment healthcare benefits, the most common form of OPEB, are a very significant financial commitment for many governments.” (GASB)


IBNR – “Incurred but not reported.” reflects the total Screen Shot 2014-08-28 at 8.24.52 AMamount owed by the insurer (self funded plan) to all valid claimants who have had a covered loss but have not yet reported it. Since the insurer (or employer) knows neither how many of these losses (the frequency) have occurred, nor the severity of each loss, IBNR is necessarily an estimate. The quality of this estimation is often used as a tool in assessing financials.
Our actuaries establish and evaluate unpaid loss reserves using recognized standard actuarial loss development methods and techniques.



Businesses, and Their Leaders, Should Keep The Faith

“In the spirit of American tolerance of religious diversity, A&E should reinstate Mr. Robertson and apologize for its religious bigotry,” quote from the Liberty Institute.

I’d like Duck Dynasty to remain on television but I support the Robertson Family in taking the show off television, if Phil, the owner and leader, can’t remain part of it.

The FOX article, “Duck Dynasty: Can’t imagine show going on without Phil” was sent to me by my oldest son, it’s worth a read, our younger generation gets it, maybe us older PC crowd should finally get it too. The video interview is also good, go to the article to watch it.

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Duck Dynasty Show Can’t imagine show without Phil

“In the spirit of American tolerance of religious diversity, A&E should reinstate Mr. Robertson and apologize for its religious bigotry,” quote from the Liberty Institute.

Personally, I stand united with loving each individual as the God given gift they are. This includes loving those who’ve chosen a path different than mine, but they should allow me the right to work and live free to share my faith. If you’ve ever felt like you can’t speak up for your faith, or you’ve been shamed into being silent, you’ve been silenced by the PC crowd. It’s not hate speech to say you don’t believe in some behavior. Why do 1.2-5.6% of our society dictate so much to the remaining 97% of us, see chart below on the numbers.

This is a great article about a company whose existence reflects their faith, I’ve read their books and heard them speak. These are regular Americans, like the rest of us, and I love the message of faith they’ve brought into our home. Business owners, like Phil, have built their companies on the rules God gave us, it’s obvious to many who use those rules to build a business.


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Business leaders have come under attack in the last decade like never before. Perhaps deserved in some regards, but the bullying of leadership that expresses an opinion is unamerican.

Phil Robertson spoke his firmly held beliefs and A&E chose to terminate his show. They ended his livelihood because individuals disagreed with his point of view.

Wishing all of you a very Merry Christmas and Happy New Year. If you’re not celebrating Christmas, I’m happy to learn more about how you’ll be celebrating the season. But for me and mine, we’re celebrating Christmas and likely to watch Duck Dynasty.

God Bless you and your families,

Self funding for many employers is an awful idea

Self funding turns your business into an insurance company. Before making this move you must prepare an analysis without influence from the sales process. Beware of anyone who says you will save money. Call us, put our independence to work.

Self funding has become a popular recommendation.

Self funding is being recommended for groups down to 25 employees – don’t go out of business because you didn’t get a second opinion first.

Self funding is about risk, your company, or client, acts as the insurance company. Know before you recommend or choose self funding if your plan is predisposed to known risks. Risk factors used to predict rates by actuaries and underwriters can be used by our team to predict the suitability for self funding, consider these risk factors before making this recommendation to your client or in the case of an HR or finance executive, to your boss.

Did you know, according to Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2013, the difference between self funding and fully insured is less than 1%?

Our team of underwriters and actuaries were all former insurance insiders and made a living making money for insurance companies, they know group risk and fee dynamics and will provide valuable insight to you.

A second opinion is never a bad idea, you can’t go wrong recommending a trusted second opinion. Everyone involved will sleep better.

BCBSM, like many vendors are offering self funded plans to small employers. The question is, do you want to be an insurance company?
BCBSM Self funded for 25-49 size groups Reform October 2013

Before you decide, call.

Sticker Shock, Even for Boosters of Obamacare

A returning customer reacting to sticker shock said, “WOW, I am a supporter of providing insurance for more people, but this is awful.”

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Mike Rogers, before Congress 10/23/2013

I do enjoy watching and listening to first hand commentary. I just received a link to Mr Rogers opening remarks on Health care reform in Washington at the same time a returning customer was slugging through their new 1/1/2014 health care options.

A returning customer reacting to sticker shock said, WOW, I am a supporter of providing insurance for more people, but this is awful.” This customer found premiums per person doubling for their small business.

The sentiments of the customer are consistent with so many who are having sticker shock along with confusion about the new rules.

Rogers, in his brief remarks mentions the trade-off the government is forcing on 85% of the population who have health care. One trade-off he explains is the, “National cancer intelligence center for the United Kingdom and the Canadian Cancer registry here’s the trade-off they picked by having government run health care. If you get prostate cancer you have a less chance of survivability than you do in the United States. And, that’s the same for skin cancer, breast cancer, bladder cancer…”

There are answers but they’re not republican or democrat. The answers lie in the details underpinning health care and its availability and affordability. The Economist just published an article, “How Science Goes Wrong“ where they outline a lack of rigor in research. Agenda driven research needs to be abolished, both to benefit individuals and lower cost for employers.

BenStaff is an analytic, detail loving firm. Everyone on my team is detail oriented and our work is focused on making the most of the employee benefit dollar spent.

ACA requires an actuary to “calculate appropriate adjustments to the AV”

Employer plan sponsors who use HRA accounts or wrapping programs must certify the plans actuarial value by using the IRS calculator, and in cases where the calculator doesn’t fit, an Actuary must certify.

Certify your plans actuarial value

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Some plan designs do not fit neatly into a predetermined AV, you will need an actuary to calculate an accurate actuarial value used to report to employees. The actuarial calculator for ACA does not take into account every unique plan design circumstance. In this case, hand calculated AV will bridge the gap. This is an affordable endeavor that permits plans to continue to be creative in plan design options.

For instance, plan design teams are focused on including a 60% AV to meet company cost objectives. Confirming, or working with us, will optimize plan designs for both the employer cost equation and employee value.