The Finance/Personnel Committee discussed a proposal to create a new internal self-insurance fund, referred to in the meeting as fund 024, to hold employee and employer shares used to pay health-claim invoices.

Speaker 2 explained the fund would be funded by payroll rates for both employees and the board share and would operate as an expense and receipt within the district rather than as a transfer. The district expects to receive invoices directly for claims, possibly on a weekly basis, and to set payroll rates in the district payroll system so contributions flow into fund 024. Speaker 2 said the district anticipates an IBNR (incurred but not reported) runout payment from the consortium of “a little over $1,000,000” that will help offset potential claims.

The committee discussed operational impacts: Speaker 5 asked about staff capacity to manage claims and accounting. Speaker 2 said the district has hired a new payroll staff member and will reassign tasks internally, and that some extra office work (issuing checks, handling invoices) will be required. Speaker 2 said staff are coordinating with DCW and Mutual Health Services on invoicing and claims processing.

Speaker 2 also requested a purchase order to the Samaritan Fund of approximately $85,000 to remove one high-cost claimant (and dependents) from the district plan and place them on an alternative plan. Speaker 2 described the Samaritan Fund arrangement as a way to cap the district’s exposure for that claimant, explaining the Samaritan Fund charges about $55,000 for the individual and an additional amount for dependents in this case; Speaker 2 said the district’s maximum exposure before stop-loss would be much higher absent the Samaritan Fund arrangement. Speaker 2 said one individual had completed the process and two others were still considering it.

No formal vote to establish fund 024 or to approve the Samaritan Fund purchase order was taken during the committee meeting; Speaker 5 and Speaker 2 said a vote would be required and that appropriations may need revision so the new fund can be spent from. Staff said they would consult with Dr. Thompson and bring appropriation changes and an estimated amount back to the board.

Next steps: staff will prepare formal appropriation revisions and a motion to establish fund 024 for board consideration and will return with details on the Samaritan Fund purchase order and any staffing implications for ongoing claims administration.