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Home My WebLink About4-28-26 Quarterly Financial Status UpdateCity of Meridian Employee Benefits Plan Trust April 28, 2026 Quarterly Report and Financial Status •i go. EMPLOYEE BENEFITS PLAN TRUST C�iY OF Mi RlDik, Quarter 4 Status As of December 31, 2025 RECONCILIATION OF SURPLUS 1. Total surplus, beginning of year ................................ 2. Totai Net gsinl(lass)................................................ 3. WrRe-ins for changes to surplus (Additional paid in, Surplus Notes, etc.) a. Additional employer surplus. ......... ................. b. C. 4. Total surplus, end of quarter (lines 1 through 3c) -.,. Column 'I Current Year to Date Column 2 Prior Year End $ 2.169,084 $ 2,741_147 1,083,5m 582, 053 a. 1.514,173 a. 0 b. D b_ 0 c. 0 C. Q $ 2,589,727 S 2.159 084 Quarter 4 Status As of December 31, 2025 — End of 2025 Quarter 4 ADEQUACY OF SURPLUS 1_ Total' surplus, end of quarter (line 4 above) 2. Minimum required surplus" .................................. 3. Excess (deficient) reserves (line 1 minus line 2) Column 1 Current Year to Date Column 2 Prior Year End $ 2,589,727 $ 2.159,084 2,243,701 2,271,459 $ 346,026 112,375 February 2026 Utilization Medical and Pharmacy Claims (PEPM, compared to prior year): • Medical and Pharmacy: Down 15% • Medical claims: Down 23% • Pharmacy: Up 5.5% PEPM Large Claim Activity: • 2 high -cost claimants exceeding $56,250 *2 months of the current plan year compared to the full prior plan February 2026 Utilization Net Loss Ratio: • The net loss ratio has improved to 89% Rolling 12-Month Costs: • Total costs: Up 1.3% • Total Claims: Up 4.9% • The primary cost drivers include: • Outpatient services • Specialty and injectable pharmacy drugs City of Meridian 44 E ] L F p H I PP10R PLAN YEAR E%PEALENCE P#16r Plan Ye2L:la172025 - Dec 2025 Priw MoalsaLCarner M f L H N ❑ C+p E-F-O H�1 lf6 Kre "YK UN sap ovb Am 1,37E 3 354-762 S 161,541 S 617363 S 906 3 3 516,359 S as,46B S 610A N S 74GAR 3 443 S -512 ft7% *A% Feb 2026 481 1-45 i 7"A%A $ 16a,423 3 950.377 S 25.87B 3 3 994.999 S 95.0W $ 969440 $ 711,402 3 719 S 514 142.7% 139.79E Ma,2026 480 1,379 821.lid S 133,942 3 90SW S 212 S 3 44M $ 94.853 3 1A29.819 S M.773 3 7AY S W ML% Ld5.14L Apr A?S AN I'm # 5alw4 $ 152.259 S 44w% t 13i 3 S esl.m # BrEm S 75 m S 717.238 # &V S 517 14+.0% 144.99E May7005 491 1.?00 587.M S 178.917 3 AkM S BO 3 - 3 769,779 S BF,027 S S6 2m 3 Y79.= 3 OId 3 511 119.2% 119.24E 1-2025 463 1.357 # 64B,7L6 185,712 S BI$,926 t 5.r174 S - S 412V 4 S 93.236 S 924,544 S 709,076 S 676 S 519 131.44h 1 DA% U 2075 482 LW 5449M $ 144.204 5 68B,7M 5 B5,129 # - 3 WOW f 3,24E f 699,90d 3 701.95E # 5I8 $ 5" 111.8% B9.6A Aul;K25 401 1,3E4 # B87.905 S 205.W S 992.599 S 2MG57 S - 3 #75,93.3 S 95058 S 370.991 5 699,76E S 5m S 517 141.14r. 130.19E S�P2025 47B 1,381 # 75B•E52 $ 192641 1 &)2-m S 7B,808 S - ! 815,4BB # ai,pB2 $ 909.547 S 989,BIB $ am S 518 143.091 131.994 ❑c47fi25 477 1,313 f 434.257 S 2%.E,55 5 M212 5 22.025 9 - 1 W777 f 94.3H0 9 763,437 5 691.2p3 S 572 S S79 1t1B16 116A% Ncv2025 471 1,343 W-834 $ 194,971 # B31k50S S 104.206 S - # 73S,3B6 S 6R,46B 1 029,3E7 3 a9Bm # BIB S SIP 134.0% 116.19E BIC -MY25 477 1,343 # 52S1,108 1&4,0B1 5 713.76E $ 5.307 3 - 4 700.071 $ BN,2w # B02651 5 OW.173 S 5B8 S 517 115.4% 115.e% TwW 3.774 14.347 3 7,1A6,m # tm4kail S 9.340,734 3 -W.B60 3 S k707,671 S T.UL336 S $.MOM S 9,W.M S 4M S U7 MOM 1177% r4thlyAqj 481 OV. S 667.01 3 171.M S "KM4 S 4S,2fx5 S 3 7m, 1m S 95,11B $EZLM S 7M.7A1 Aerz-6rrlufPord Cast 73% 3Dc BASE 514D VA E94 11% it 2.0 M SO.0 M MOM $ 0m V.0 r4 OM M� ■ � , Sb.014 �� 4rr7A25 Feb 2925 M7r2925 WM25 Nay N25 Id1r2R .s N129m AL11L_,c25 W2025 Vet 20M t40a2um lIK? L5 ■YT❑Adnilm JlYT6Mad ❑farms ■YT61h❑lawns-YTI10Br�trlb tram -Lap d>- m1 - me Vedk3aw I- duausa f.lypda Lrridel aamrhisnaUd7+x1, rndnrkaecnsa has dc�herayr ker. and sropdaisuemnnrro CURRENT PLAN MAR EXKAIENCE City of Meridian Current Plan Year, Jan 2026- Feb 2026 CufrontMedicalCarrier EC 11 _ r G II L M N P MPH C•D E-r-G M+L J19 klg IE•ILik UM ph2028 479 ;-W $ 475,152 .t Ulr311 $ 656.493 S 4%876 5 S 806,787 S 108,25E S 7a5,M $ 814.915 S $32 $ BOB 531% B7,856 Feh2426 d7a 1.337 } d51,572 $ 177,a16 S c29,dgg S L307 S S 5213.Ul S luamu 73"11 S 809.92d S S61 S 61..: :I S,io1 WA% KV 2029 Apr N26 Raw 2DM twn 3ri36 iIL2a2B Omg2026 Sep2EQ6 Orr262E Nor2026 e�za2s remL 957 Past Da724 S ]f =L) S "H.951 S 89,963 5 i 1a34,96g S 21CM 5 IA"SS S IAM.739 S 541 S 6O6 92.5% &9.3% Mehlykug 479 1.341 S 4B3,362 S 179,81.1 S 942.916 S 25,491 S S 617Ae4 S tM,y43 $ n5,627 S 812.379 CPYOEPR 479 1.3d1 $ OW.36 S 375.37 S 1,3".731 S 5327 $ S 1.274a6 S 224.00 S 1,515A6 $ L07-75 WYp0m 01 1302 S 1261.a8 S M-BEL S 1,617.15 S lk.W S S 1123.14 S L417.61 S 1.720.76 S 1,462.07 %alarW -c.d% -1.S% 23,271 S.S% -1104% 43,0% NA -%Sz% 16.d% -11.R% 16.1% Fueearir rout rose 64% 25% 89% 4% a% a5't 151% l}6M U.6 M i $1.4 H 51.7 M J1.9 M $0.2" ara S9.B F1 $D.4 M #a.7 M $0.4 M Iafl2Q26 F'll2020 Mar202f- 4nr2r*r Mar102e iva792e U2925 nug2e2e Stu20211 0r1202✓ wr,.L . ,-,LI a YTD Amow ■YTDMea Cidrmi ■YT4 RK Cid&Lt-YTDCuf9rihumin -L�y@P V&w-a(t 6A SG/PrC ira0 laid NOMJ AM MMA hl A%ftrl sf—, muavY--1— -d Lyo(—A—RM COMEBT Surplus and IBNR Requirements $6,00U00 $5, 000,000 $4,000,000 $3, 000,000 $2, 000,000 $1, 000,000 $0 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar--24 .tun-24 Sep-24 Dec-24 Mar-25 Jan-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dee 26 Total Required IBNR lArumum Required Surplus —Actual Assets Maximum Desired Idaho State Code Chapter 40 Title 41 • (1)(c) If future claims payments plus future costs of operation are greater than future contributions plus current reserves, there shall be a reserve in an amount equal to future claims payments plus future costs of operation, less future contributions, less current reserves • (7) The trust fund shall maintain the minimum surplus requirements at all times throughout the year Required to maintain adequate surplus on a monthly basis. Terms "Bench marking" = Are we competitive? • Conducted annually by Gallagher Benefits Broker "Actuarial review" = Are our numbers sound? • Conducted annually by Gallagher Actuaries "Market check" = Can we do better? Done as needed, last conducted in 2019 Market Check A market check gives us the intelligence of an RFP without the disruption, cost, and risk of resetting a high -functioning plan. What a Market Check Does Well: • Tests competitiveness of admin fees, stop -loss rates, and network discounts • Validates assumptions (trend, claims performance, vendor margins) • Applies pressure on current vendors to sharpen pricing and service • Targets specific levers (stop -loss, PBM, TPA fees) instead of Full RFP Why a Full RFP Is Not the Right Fit: • Requires a formal procurement/public bid process, which can invite proposals from vendors that are not realistic options • Limits collaboration with carriers and TPAs during the process, reducing dialogue, questions, and negotiation • Creates lengthy questionnaires and administrative work on issues our team already understands • Because the Trust is separate from the City, a procurement -style RFP is not the best fit for this review Recommendation Market Check: A scalpel — Focused, efficient, and data -driven We can demonstrate due diligence through actuarial validation and targeted market testing without exposing the plan to unnecessary disruption A market check keeps us honest with the market Questions?