Factors to consider when determining the appropriate level of surplus In a recent Milliman report entitled “Status of collectively bargained benefits: Multiemployer health and welfare fund statistics,” Milliman analyzed the 2016 financial disclosures of 705 multiemployer health and welfare funds. One of the more interesting statistics analyzed was net assets (shown as months of total…
Multiemployer health and welfare funds face a difficult challenge—how do you maximize benefits provideddavid to your members while operating under a collective bargaining arrangement where the contributions paid to the fund are generally predetermined? In other words, how do you get the biggest “bang for your buck”?
The 2017 Milliman Medical Index noted that medical expenditures (inpatient, outpatient, and professional) made up about 80% of the total cost of healthcare for a family of four, and that nationally the cost increases from 2016 to 2017 were about 4%.
As we begin a new year, multiemployer plans will need to renew their efforts for managing the benefits they offer members based on their healthcare budgets. In doing so, trustees and administrators will need to keep the following topics in mind when planning for 2018 and beyond.