L egislative F inanc e Committee Dec ember 7, 2017 Ric har d - PowerPoint PPT Presentation

L egislative F inanc e Committee Dec ember 7, 2017 Ric har d Vale r io Sammy J. Quintana E r ne stine Chave z Chie f F inanc ial Offic e r E xe c utive Dir e c tor De puty Dir e c tor

NMPSI A T o da y ◦ Sc hool Distr ◦ Sta ff ic ts ◦ 88 Ma nda tor ◦ 11 F y (E xc lude s APS) T E ◦ Cha r ◦ Boa r te r Sc hools d of Dir e c tor s ◦ 100 Ma nda tor ◦ 11 Boa r y d Me mbe r s ◦ 2 NE ◦ 26 Othe r A-NM E duc a tiona l E ntitie s ◦ 1AF T -NM ◦ (Optiona l) ◦ 3 Gove r nor Appointe e s ◦ 1 Supe r inte nde nts’ Assoc ia tion ◦ 1 Ne w Me xic o Assoc ia tion of Sc hool Busine ss Offic ia ls ◦ 1 E duc a tiona l E ntitie s a t L a r g e ◦ 1 Sc hool Boa r ds Assoc ia tion ◦ 1 Public E duc a tion Commission 2

F Y19 Appro pria tio n Re q ue st F und F Y17 F Y18 F Y19 Inc r e ase Pe r c e ntage Ac tual Ope r ating Appr opr iation F Y18- F Y19 Diffe r e nc e Budge t Re que st F Y18- F Y19 Be ne fits $ 314,734,567 $ 325,783,600 $ 332,022,081 $ 6,238,481 1.91% Risk $ 84,246,273 $ 70,799,100 $ 82,965,060 $ 12,165,960 17.18% Pr ogr am Suppor t $ 1,347,000 $ 1,299,900 $ 1,338,700 $ 38,800 2.98% Age nc y T otal $ 400,327,841 $ 397,882,600 $ 416,325,841 $ 18,443,241 4.64%  F or F Y19, NMPSIA ha s r e c omme nde d tha t the Public E duc a tion De pa r tme nt r e que st a n inc r e a se of $17,695,497 to fund the e mploye r sha r e of pr e mium inc r e a se s.  T he inc r e a se c onsists of:  $13,329,192 for E mploye e Be ne fits Pr e miums  $4,366,305 for Risk Pr e miums  APS will r e c e ive 1/ 3 of the tota l a ppr opr ia tion inc r e a se due the funding for mula . T his r e duc e s the a mount of a ny a dditiona l funding to NMPSIA pa r tic ipa ting sc hools. 3

Risk Pro g ra m F a c ts Pr ope r ty: • Pro pe rty d e d uc tib le is $750,000; $750 Millio n in Insure d limits Pe r Oc c urre nc e sub je c t to sub -limits suc h a s F lo o d a nd E a rthq ua ke : $100 Millio n Annua l Ag g re g a te ; $800 Millio n in T e rro rism L imits • Crime L imit is $2 Millio n Pe r Oc c urre nc e • Asse ts insure d a re in e xc e ss o f $23 Billio n • $17 Billio n a re F ra me / Stuc c o c o nstruc tio n, the mo st fla mma b le type o f c o nstruc tio n • 60% o f pro pe rtie s a re lo c a te d in Pro te c tio n Cla ss 9 o r 10, 10 b e ing the wo rst pro te c tio n c la ss • 60% o f pro pe rtie s a re lo c a te d in 100 Ye a r F lo o d zo ne s • T he pro pe rty ra te ha s inc re a se d o nly .021 pe r $100 d o lla rs o f va lue s sinc e 1991 L ia bility a nd Wor ke r s' Compe nsa tion: • L ia b ility d e d uc tib le is $1,000,000; $20 Millio n in L ia b ility L imits fo r Se xua l Ab use • T he re a re no T o rt Cla ims Ac t L imit pro te c tio ns fo r Sc ho o l Bus Co ntra c to rs • 44,000 e mplo ye e s • $1.75 Billio n in pa yro ll • 300,000 stud e nts • 44,000 sc ho o l a thle tic pa rtic ipa nts • 9,000 vo lunte e rs • 9,300 ve hic le s inc lud ing b use s 4

Risk Cla ims T o ta l $ Spe nt $25,000,000 $22,698,913 $20,858,870 $20,000,000 $18,938,258 $17,975,573 $17,176,097 $16,172,195 $15,805,319 $15,679,763 $15,000,000 $12,993,070 $12,642,676 $12,372,857 $12,128,141 $11,805,391 $12,616,778 $10,000,000 $5,000,000 F Y13 F Y14 F Y15 F Y16 F Y17 F Y18 Pro je c te d F Y19 Pro je c te d Pro pe rty a nd L ia b ility Wo rke rs' Co mpe nsa tio n • Over the past several years, claim frequency has been steadily decreasing, while claim severity has been steadily increasing. 5

SE L F -I NSURE D GOVE RNME NT WORK E RS’ COMPE NSAT I ON AVE RAGE COST PE R CL AI M City of Alb 14000 ABCWUA 12000 City of SF 10000 APS 8000 NMPSIA NM Mun 6000 State of NM 4000 City of Farm 2000 City of LC City of Carls 0 2012 2013 2014 2015 2016 NMCIA 6

L o ss Pre ve ntio n Pro g ra ms ◦ E r g onomic s ◦ Ob je c tive : re duc e the fre q ue nc y a nd se ve rity o f c o stly so ft tissue injurie s b y sc ho o l e mplo ye e s. ◦ T hr e a t Asse ssme nt a nd Ac tive Shoote r ◦ Ob je c tive : Re duc e the pro b a b ility o f a n inc ide nt o f multiple vic tim sc ho o l vio le nc e . ◦ E mployme nt Pr a c tic e s Polic y a nd Consulting ◦ Ob je c tive : Re duc e the numb e r o f e mplo yme nt pra c tic e s c la ims (wro ng ful te rmina tio n, vio la tio n o f c o ntra c t) ◦ T e c hnic a l Assista nc e Pr og r a m for Spe c ia l E duc a tion ◦ Ob je c tive : re duc e the numb e r o f I DE A (I ndividua l with Disa b ilitie s in E duc a tio n) Due Pro c e ss a nd L itig a tio n c la ims. ◦ On- site Sc hool F a c ility Audits ◦ Ob je c tive : re duc e the fre q ue nc y o f Wo rke r's Co mpe nsa tio n, L ia b ility a nd Pro pe rty Cla ims. ◦ Ide ntifying a Pr e da tor T r a ining ◦ Ob je c tive : re duc e the numb e r o f se xua l mo le sta tio n c la ims in NM pub lic Sc ho o ls ◦ Bullying Pr e ve ntion T r a ining a nd susta ina ble polic y de ve lopme nt c onsulting ◦ Ob je c tive : T o a ssist sc ho o ls with unde rsta nding o f the issue s a nd de ve lo pme nt o f po lic ie s a ddre ssing b ullying . ◦ Ar me d sc hool e mploye e s ◦ Ob je c tive : T o a ssist sc ho o ls with a n unde rsta nding o f the re le va nt sta tute s, po lic ie s, pro c e dure s a nd lia b ilitie s ne c e ssa ry to ma ke info rme d judg e me nts re g a rding a rming e mplo ye e s. 7

Risk F und Plan Ye ar F und Balanc e at Rate Inc r e ase F und Balanc e at E nd Star t of Plan Ye ar of Plan Ye ar 2010-2011 $23.3 millio n No Inc re a se $24.9 millio n 2011-2012 $24.9 millio n No Inc re a se $19.8 millio n 2012-2013 $19.8 millio n -10.00% $12.3 millio n 2013-2014 $12.3 millio n 25.49% $5.4 millio n 2014-2015 $5.4 millio n 7.31% $4.0 millio n 2015-2016 $4.0 millio n 11.28% $-5.7 millio n 2016-2017 $-5.7 millio n 5.14% $-14.2 millio n 2017-2018 $-14.2 millio n 0.09% $-17.1 millio n (pro je c te d ) 2018-2019 $-17.1 millio n 6.58% $-17.1 millio n (pro je c te d ) (pro je c te d ) $16.0 million in fund swe e ps during F Y17! 8

E mplo ye e Be ne fits Pro g ra m NMPSIA offe r s the following be ne fits a nd se r vic e s: • Se lf- Insur e d High Option Me dic al Plan and L ow Option Me dic al Plan – BCBSNM and • Pr e sbyte r ian Se lf- Insur e d HMO Me dic al Plan - Ne w Me xic o He alth Conne c tions • Se lf- Insur e d Pr e sc r iption Dr ug c ove r age - E xpr e ss Sc r ipts • Cove r e d Me mbe r s on Me dic al/ RX • 22,180 E mploye e s • 49,314 T otal L ive s • Se lf- insur e d High and L ow Option De ntal Plans - Unite d Conc or dia • F ully insur e d Vision Plan - Davis Vision • F ully insur e d L ife and Disability Plans - Standar d • Me a sur e s ta ke n to impr ove c ost c onta inme nt e ffor ts: • Pur c hase d Stop- L oss Cove r age in F Y16 to mitigate the r isk of c laims ove r $1 million • Pur c hase d Data War e house , Re por ting and Data Mining Se r vic e s in F Y18 in or de r to be tte r • de fine the he alth r isk of the plan par tic ipant population and to tr ac k c hange s ove r time . T his will allow NMPSIA to impr ove the value of the plans and ide ntify oppor tunitie s for futur e plan de signs and pr e miums. F inalize d 2016 me dic al plan c ontr ac ts with c ommitme nts to managing diabe tic s and • me mbe r s with c hr onic he alth c onditions, value - base d c ar e ar r ange me nts, we llne ss and dise ase (c ar e manage me nt) manage me nt pr ogr ams. Imple me nte d signific ant me dic al and pr e sc r iption dr ug plan de sign c hange s and • imple me nte d pr ogr ams to de c r e ase plan c ost and inc r e ase me mbe r c ost shar e . 9

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E mplo ye e Be ne fits F und Plan Ye ar F und Balanc e at Rate Inc r e ase F und Balanc e at E nd of Star t of Plan Ye ar Plan Ye ar 2013-2014 $31.6 millio n Me d ic a l 6.6% $42.3 millio n De nta l 3.0% 2014-2015 $42.3 millio n Me d ic a l 1.5% $41.4 millio n De nta l 0.0% 2015-2016 $41.4 millio n Me d ic a l 4.0% $20.9 millio n De nta l 0.0% 2016-2017 $20.9 millio n Me d ic a l Hig h 8.30% $13.8 millio n Me d ic a l L o w 7.15% De nta l 0.0% 2017-2018 $13.8 millio n Me d ic a l Hig h 3.98% $18.4 millio n Me d ic a l L o w 1.82% (pro je c te d ) De nta l 0.0% 2018-2019 $18.4 millio n Me d ic a l Ble nd e d $20.5 millio n (pro je c te d ) 10.39% (pro je c te d ) De nta l 0.0% T ar ge t fund balanc e is 1 month of c laims - $24.2 – 26.1 million. 11

F Y18 Mo nthly I nc re a se fo r E mplo ye e E ff. 10/ 1/ 2017 Plan Salar y Unde r Salar y $25,000 or Ove r $15,000 (60% / 40% ) (75% / 25% ) Rate Inc r e ase Sing le : Hig h 3.98% Blue Cro ss Blue Shie ld Hig h $6.28 $10.04 Optio ns Optio n L o w 1.82% Pre sb yte ria n Hig h Optio n $5.08 $8.12 Optio ns Ne w Me xic o He a lth $5.66 9.04 HMO 3.98% Co nne c tio ns F a mily: Blue Cro ss Blue Shie ld Hig h $15.94 $25.52 Optio n Pre sb yte ria n Hig h Optio n $14.22 $22.74 Ne w Me xic o He a lth $14.34 $22.96 Co nne c tio ns 12