CHAPTER 3.40: HEALTH INSURANCE FUND

Section

3.40.010 ESTABLISHED; PURPOSE.

There is created the health insurance fund for the purpose of accounting for deposits made to the fund by the borough and school district, and disbursements made from the fund.

(Ord. 98-068, § 2 (part), 1998; Ord. 93-135, § 2, 1993)

3.40.020 REQUIREMENTS.

(A) The borough and school district shall:

(1) account for health insurance deposits and disbursements within the fund for the borough and school district;

(2) credit the fund for interest earned on the investments based on the equity of the fund;

(3) maintain a reserve balance equal to the incurred but not reported claims (IBNR) which shall be calculated at June 30 of each year;

(4) share the same monthly attachment factor as long as the health insurance plans provide identical benefits; and

(5) include in their respective operating budgets the combined monthly attachment factor;

(6) have the retained earnings be maintained utilizing the following criteria:

(a) Once the fund has acquired retained earning in excess of $650 per employee, this excess shall be utilized to subsidize the next year’s monthly attachment factor.

(b) If the fund’s returned earning declines to less than $650 per employee, the next year’s monthly attachment factor shall be increased accordingly.

(B) These funds shall only be utilized for health insurance purposes.

(Ord. 98-068, § 2 (part), 1998; Ord. 93-135, § 2, 1993)