Everett School Employee Benefit Trust

IV. Financial Report

Darla distributed the financial summary and reviewed with trustees. She reported that the financials were looking good. An increase in the fund balance in January of $64,563 brought the increase for the year to $1,033,756. Five CDs and one Government Bond were purchased and a stop-loss refund in the amount of $35,817.75 was received. Darla said there was still an emphasis on moving cash into investments to bring the total cash down. HMA claims were higher than a year ago. The trust is in a little better shape than a year ago with an overall increase in the fund balance from July 2005 of $1,033,756 compared with $838,991 a year ago. Overall the fund balance today is $5,399,615 compared to $3,973,673 a year ago.

Darla received the final annual report from the Office of Financial Management. No follow-up is necessary because the Trust is in compliance.

Darla wanted to confirm that the trustees would like the quarterly investment report at the next meeting. It was agreed that Curt Haldorson would attend the meeting.

Tom provided the calendar year-end Paid Claims Experience report. Exhibit 1 shows that there were some pretty high months during 2005 due to large claim activity. Hopefully this will come down for 2006. There is one large claim continuing but stop-loss should take effect soon. No eye-opening trends. Exhibit 2 shows a very healthy

situation in aggregate liability. Overall the Trust is in a good financial position and things seemed to be running well.

Tom answered some questions asked by Mike at a previous meeting regarding open enrollment data. He said he doesn’t think movement amongst the PPOs will impact the Trust and that if people moved from the PPO1 to one of the HMOs it would be a benefit. Tom said that we’ve started the year in a way that suggests our budget is not compromised by plan movement during open enrollment.

Tom encouraged the Trust to continue with the Total Health Management. He said Mercer is getting more information showing that the work place is a good place to get information out to families. In general the Trust should feel good about THM. Tom said it was important to get employee groups as well as the district more involved. He mentioned that Tacoma had a very aggressive campaign and was pleased with the results.

Tom will follow up on getting a mid-year incurred paid claims adjustment report for the trustees. Darla will correct the financial statement when the adjustment is made.

VI. Total Health Management Update

Randi reported that at the last meeting the name Champions was changed to Liaisons. She said there was good feedback regarding the information that has been sent out. Liaisons will make a presentation on the nurse helpline at their faculty meetings. They have been provided with tools to use including a one page information summary with talking points and a PowerPoint presentation. Currently a quarter of the Liaisons have completed their presentations. Another reminder will be sent to them in a couple of weeks to remind staff where to call for information.

May 1^st will be the official kick-off for the health assessment survey. May 1 through 31 is the “window of opportunity” with incentives including Mariner Tickets, Starbuck gift cards, etc. available. Staff members will be able to take the assessment after the 31^st but will not be eligible to enter to win an incentive gift. Randi is working on the assessment brochure which includes frequently asked questions. The brochure will be distributed through the Liaisons the second week of April. Staff will be allowed to take the assessment on district computers during non-contract time. Randi said she has been receiving mostly good feedback however the biggest concern is confidentiality. She felt the more said about how confidential the assessment is will be helpful.

The next THM phase will be disease management. An outreach program for staff that needs help will be developed, probably for the next school year.

It was suggested that the trustees write a letter, possibly with testimonials, that gives staff a positive message about THM. Another suggestion was putting magnets at sites in staffrooms, nurses rooms etc. After further discussion it was decided that Betsy would talk with Molly about developing a letter the trustees could sign. Sue suggested that once the letter was drafted Gay Campbell could “polish” it up before it was sent out.

ü IBNR review in February (mid-year report for the period ending December31)
ü Review of Total Health Management in October
ü Review the Operations Manual in April.