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HomeMy WebLinkAbout20171262.tiffAnnual Report to Members 2016 Se rv,c e O S!t_Vur uree`; 1 ai :0O O . County Technical Services, Inc. The Service Organization for Colorado's County Governments Our Mission Statement To provide counties with alternative risk management and other technical services that are progressive, competitive and cost-effective. 2016 CTSI Board of Directors j a President Terry Hart (CWCP) Commissioner Pueblo County Treasurer Randy Schafer ((HP) County Administrator Phillips County Vice President Darius Allen (CAPP) Commissioner Ala mosa County Director Kevin Karney (CAPP) Commissioner Otero County Secretary Clifford Lucero (C1 CP) Commissioner Archuleta County id Jae! OAS Director David White OP) Commissioner Montrose County Table of Contents Colorado Counties Casualty and Property Pool (CAPP) Started in 1986 52 member counties Insures $2.3 billion of property, 6,133 vehicles and revenues of $1.27 billion $60.8 million in equity and interest returned to member counties Equity: $15.5 million Message from the CTSI President County Health Pool (CUP) Started in 1984 69 public entity members Covers 8,190 participants Member equity used to minimize contribution fluctuation Equity: $876 million ms■s rsam■s.•sasei•tili•4Wbl!ii4ll9l4!$**bidl Message from the Executive Director cTSI CAPP CWCP clip #00000,0000000 .. m m* -coon ■ n n e e e e e e e e r_»■ 2 • lffllfnflfls1,iisimmmmmm i•mii'if i•ff<lll#■ff4 t f Pll *6444444!4 f f 44.4•4#m m l i*mtmm•mm*ma r r r r e e n rr Egg!geitip 00 0Mlm0ememmm mmmms mluemm■mmarifiiffif4f4t9ffy=r N4ii,i NO 4 n e n e f z e■■■■■■ i i i mm mmlmmmm•maa.a-rya r,a mrmm�ieiiii f•i i 4,lll9��!9!! M �'� Loss Prevention 2016 Pool Members 2017 Boards of Directors uiiiffffiffl1 e t h e . 20 2 0 ifiiiSi4444t*iI$f*4442404lm604m mmtaiiariiiiilitfl*F#Eft*Stl*iimimmma#rirr err lfilfffl44l_ i/m/i/im0mmmmmaar■■rrrrrrelii*»»alle ii•ififlffl4R 26 1 U. FP■PMV 3 5 36 A Message from the CTSI President Terry Hart t CTSI President CTSI, the pools, and the Soo Grant Street Office Condominium Owners Association have finished this year's required business functions and remain in excellent financial positions. The audited financials, presented in this annual report, support the unquestionable financial decision to create the pools and CTSI to meet our member counties' insurance, management consulting, training, and other centralized service related needs. The pools were created over 30 years ago, to provide coverage for counties and to minimize the effect of the numerous insurance industry cycles and the subsequent adverse impact they have had on members. The continuous development of CTSI and the pools has helped to stabilize necessary coverage and minimize cost increases for member counties allowing them to conduct business with the assurance of adequate protection and support. Unprecedented commitment, involvement, and support from our members has been paramount in our process of meeting current and future requirements of providing the broadest, most cost-effective coverage possible despite the fluctuating insurance markets, which customarily have left counties in an untenable position regarding cost and necessary coverage. In addition to insurance products, CTSI has, as requested by members, effectively developed and expanded our highly -valued management, training, and consulting assistance programs. The continuing demands placed on county budgets and resources, along with the ever-changing rules and regulations they must know and incorporate into their operations, emphasize the importance of CTSI as a major resource to members. As a county -owned organization, CTSI provides assistance to members through continuous education and assimilation of new requirements into county work processes, making CTSI an invaluable asset to members. As e continue to reinvent your organization to assure that it meets the future needs of members, I cannot emphasize enough the importance of your continuous commitment and participation as members in the operations and management of CTSI and the pools. The economy of scale regarding benefits and services provided to members by CTSI has produced results unparalleled by any other organization. I cannot think of acounty that has not benefited by having CTSI and their expertise available to them, In closing, I would again like to emphasize the importance of CTSI as your country service organization and thank you for your continuing support of CTSI and of the CTSI staff who work on your behalf. Through your unwavering commitment, we will continue to be successful in controlling the cost of services and insurance necessary for country operations, Together we truly have established our organization as an irreplaceable resource for counties. Sincerely, Terry Hart, Pueblo County CTSI President A Message from the CTSI Executive Director With the presentation of this annual report your county -owned organizations, CTSI, CHP, CAPP, CWCP, and the Boo Grant Street Office Condominium Owners Association concluded another successful year of operation on your behalf. All of the aforementioned owned organizations were issued clean financial audit opinions again this year. Member involvement in the management and operation of CTSI and the pools along with stable membership have produced the unparalleled success of these organizations year after year. M The commitment of members to the "controlled privatization" concept, blending public sector control with private sector performance has once again produced extraordinary results for members as verified by the presented financials and services provided for in sections of this report During the 2017 renewal process, we succeeded Allen Chapman your review the p g CTSI Executive Director in maintaining and/or reducing costs of most lines of coverage for our members. In addition, we continued to increase limits when needed and provide coverage for new functions as needed by member counties. You've heard it said, "If it ain't broke, don't fix it." But I am here to tell you that without change there is no progress. That is why CTSI acts as a change agent for counties and subscribes to continuous improvement. This means that we are constantly investigating ways to reduce the cost of insurance coverage and ancillary services for members. Our centralized purchasing power at a much larger volume has helped significantly control member costs over acquiring services and functions independently. The continued reliance on CTSI services by members and nonmembers further demonstrates the tremendous value provided by your county -owned organization. The stabilization of costs and additional benefits the commissioners sought when forming CTSI and the pools has again been affirmed with the return of member equity to offset future operation costs. Thank you for your commitment, support, and participation in your county -owned and operated organization. It is through this and your continued use of prescribed risk management practices, centralized services, and associated training programs that we have collectively been successful in keeping current and future costs to a minimum. Working together, we have produced a consistent pattern of member benefits year after year. CTSI has unquestionably established itself as an organization that continues to be a tremendous asset to all members. Sincerely, Allen Chapman CTSI Executive Director CTSI Approximately 83% of all Colorado counties participate in one or more of CTSI-administered pools. CAPP credited $1.5 million in earned equity to local member county govern- ments toward 2016 contributions. $837,000 of interest from CAPP's CTSI- managed investment portfolio was also credited toward 2016 contribu- tions. CHP`s alliance with Anthem Blue Cross & Blue Shield resulted in rate increases of only 5% versus an industry average of 10-18%. Only 10% of LAPP and 9% of CWCP contributions go to administrative overhead (excluding claims administration fees). Only 7% of CAPP and 8% of CWCP member contributions go to claim administration fees. CHP's administrative overhead is 10%, well below the industry average. The lease purchase program continues to benefit many counties in their property and equipment procurements. CTSI assisted counties with grant writ- ing and project management as well as county administration services. County Technical Services, Inc., administers three county -owned, self -insured insurance pools and provides a multitude of technical, loss prevention., and consulting services to public entities through- out our state. CTSI Administered Self -Insurance Pools In 2016, CTSI had an excellent membership renewal in each of its insurance pools which include: The County Health Pool which covers the healthcare needs of 8,190 public entity employees and their families across Colorado. The County Workers' Compensation Pool covering the workplace needs of county employees and statutory volunteers in 51 counties, The Colorado Counties Casualty and Property Pool insuring the assets of 52 counties. Third -Party Claims Administration Services CTSI provided third -party claims administration for the following accounts in 2016. Weld County Self -Insured Workers Compensation Program Denver Water Self -Insured Program Glen Sandquist Sedgwick County "Our relationship with CTSI has been really good. We've had various claim issues with the sheriffs department, and an C1177bulance accident resulting in a fatality. CM handled those very well and gave us advice on how to handle other matters." CTSI Audited Statement of Financial Position December 31, 2016 and 2015 CURRENT ASSETS Cash and Cash Equivalents Investments Trade Accounts Receivable Prepaid Expenses Total Current Assets PROPERTY AND EQUIPMENT Building Furniture and Equipment Accumulated Depreciation Property and Equipment, Net OTHER ASSETS Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Accrued Vacation TPA Deposits Tenant Deposits Prepaid Claim Administration Fee Total Current Liabilities NET ASSETS Unrestricted Total Liabilities and Net Assets 2016 944,188 3.590,249 133.026 _16,331 4,684,394 3, 791,643 312,205 (1,648,700) 2,457,149 2176 $ 7,143:719 $ 138,316 87,344 85,000 26,695 337,355 5,806, 804 $ 7,143,719 CTSI Audited Statement of Activities For the Year Ended December 31, 2016 and 2015 REVENUES, GAINS AND OTHER SUPPORT Administration Fees Claims Fee Revenue Office Building Rents Investment Income Other Total Revenues, Gains and Other Support EXPENSES AND LOSSES Program Services Claims Processing Loss Prevention Administration Office Building Operations Total Expenses and Losses CHANGE IN NET ASSETS NET ASSETS, Beginning of Year NET ASSETS, End of Year 2016 $ 2,118, 602 1,714, 505 499,157 94:719 33,878 4,460,861 1,252,708 566 218 1,975,123 513 $45 4,287,994 172,867 6,638,407 $ 6,808, 364 2015 $ 1,071,070 3,143, 857 338,365 39,754 4,593,046 4,024,506 637,157 (2,102,423) 2,559 240 1,934 $ 7,154,220 $ 102,507 88,498 285,000 28,718 10,000 520,723 6,638, 497 7,154,220 2015 $ 2,088,297 1,857,207 490,824 15,524 39,508 4,491,420 1,291,444 520,520 1, 995,002 475,208 4,289,183 202,237 6,431,260 $ 6,633,497 CTSI Chord Dicer() Archuleta County "Allen Chapman and the entire staff have been champions for every Colorao county CTSI has a great team in place. It's been an honor and an amazing. experience to work with such a professional organization." r Mil' Ida S County Health Pool CHP Provides medical and other benefit coverages J 4 u Claims Administration: Anthem and VSP r Managed Care Network: Anthem Th J Q CTSI County Administration & Grant Services Presented numerous budget seminars and consulted on various county issues. Communicated, assisted and resolved county operational issues on a daily basis Lake County — Completed the Huck Finn Park Ice Rink Facility. Cheyenne County — Presented budget seminar and work with county on budget issues. Las Animas County — Presentedbudget seminar and overview on financial issues. Delta County — Assisted on equipment bidding issues. Rio Grande County — Consulted with staff on organizational issues. Rio Grande County — Assisted in filling the administrator's position. Lake County —Assisted with the formation of procurement policy Delta County — Assist commissioners on road and bridge evaluation. Chaffee County — Reviewed and assisted on water damage claim. Prowers County — Worked with the county on organizational issues. Crowley County -- Reviewed lightning damage from storm, Elbert County — Met with county on organizational issues. Archuleta County — Worked with the county on water damage loss. Washington County — Assisted on water damage claim for county buildings. Hinsdale County — Assisted in hiring a county administrator. CTSI Administrator ser S. .a. a imam a. a r.. ow. * i County Workers Compensation Pool, CWCP Provides statutory workers Th compensation coverage I C i CTSI )Claims Administration: , Broker: AJ Gallagher Th J Excess Insurer: fre ca._ Anthem Blue Cross & Blue Shield I Excess Insurer: Arch add I i C------- Actuary: Willis n a NS4 . a a a a. .a a s Colorado Counties Casualty & Property Pool, + APP ) , Provides property and liability coverage Claims Administration: CTSI J 1 a i Broker: AJ Gallagher tr- Excess Insurers: One Beacon, Lexington, Hiscox, Ace C , I Actuary: Willis Towers Watson 800 Grant Street Office Condominium Owners Association In 2001, CTSI acquired a commercial office building at Boo Grant Street, Denver Colorado, and uses it as the base of its operations. During 2004, CTSI formed the Soo Grant Street Office Condominium Owners Association (the Association) The Association is incorporated as a not -for-profit corporation in the State of Colorado for the purposes of operating and maintaining the common property of the Association, The Association consists of seven office units and the adjacent parking structure which contains 120 parking spaces. CTSI is the lessor for three and one-half condominium units leased to other companies. As an association member, CTSI owns 86% of the condominium units of the Association. 800 Grant Street Office Condominium Owners Association Audited Balance Sheet December 31, 2016 and 2015 2016 2015 Operating Capital Reserve Reserve Total ASSETS Current Assets Cash Prepaid Expenses TOTAL CURRENT ASSETS Current Liabilities Accounts Payable $ 40,995 $ 147,613 $ 188,608 688 - 688 $ 41,683 $ 147,618 $_189,296 LIABILITIES $ 22,328 $ - $ 22,328 10,334 $ 165,846 688 166,534 FUND BALANCES Fund Balance - Unrestricted 19,355 19,355 24,222 Fund Balance - Capital Reserve - 147,613 147,613 131,978 TOTAL FUND BALANCES 19,255 147,613 166,968 156,200 TOTAL LIABILITIES AND FUND BALANCE $ 41,683 $ 147,613 $ 189,296 $ 166,534 7 CAPP 100% of CAPP member counties renewed their membership. CAPP members' equity was $15.5 million at the close of 2016. CAPP maintained low operating costs and returned $1.5 million of its equity and $837,000 of projected interest income to member counties as a credit toward 2016 contributions, CAPP's 2016 excess property insur- ance rate reduced by 4.5% with a 3% increase in property values. For 2016 CAPP's excess casualty insurance rate increased by 1.3% with a 111% increase in county revenue. The Colorado Counties Casualty and Property Pool (LAPP), which protects the assets of 52 counties throughout Colorado, is acclaimed as a national model for intergovernmental pooling. CAPP Board of Directors 2016 President/Comptroller Darius Allen Commissioner Alamosa County Director John Martin Commissioner Garfield County Vice President Kevin Karney Commissioner Otero County L. Director Mike Bordogna Commissioner Lake County Director Brian McCracken Commissioner Morgan County Secretary Terry Hart Commissioner Pueblo County Director Sean Conway Commissioner Weld County 8 CAPP Audited Statutory Statements of Admitted Assets, Liabilities & Members' Surplus December 31, 2016 and 2015 2016 2015 ADMITTED ASSETS Cash and cash equivalents Investments Total cash and investments Due from self -funded counties Accrued interest receivable TOTAL ADMITTED ASSETS LIABILITIES AND MEMBERS' SURPLUS LIABILITIES Reserve for losses and loss adjustment expenses Reserve for unallocated loss adjustment expenses Deposits held for self -funded counties Surplus Distribution payable Other Accounts Payable Total liabilities MEMBERS' SURPLUS TOTAL LIABILITIES AND MEMBERS' SURPLUS $ 2,147,921 $ 1,544,848 22, 939,604 23,445, 298 25,087, 525 24,991,146 121,351 47,053 171 127 183,324 $ 25,380,003 $ 25,221,523 $ 6,445,549 732,721 480,000 1,499,914 883,440 9,842724 15,537,279 $ 5,798,983 718,021 350,000 2,106,585 4,143 8,984,832 16,236,691. 25,389,003 $ 25,221,523 CAPP Audited Statutory Statements of Income 84 Members' Surplus For the Year Ended December 31, 2016 and 2015 UNDERWRITING INCOME Members contributions written Excess insurance written Net underwriting Income UNDERWRITING EXPENSES Net losses and loss adjustment expenses incurred Unallocated loss adjustment expenses incurred Other underwriting expenses incurred Total underwriting expenses incurred UNDERWRITING GAIN NET INVESTMENT INCOME I (LOSS) NET INCOME BEFORE RETURN OF SURPLUS RETURN OF SURPLUS MEMBERS' SURPLUS - BEGINNING OF YEAR CHANGES IN NONADMITTED ASSETS MEMBERS' SURPLUS - END OF YEAR 2016 2015 $ 9,304,503 $ 9,527,481 (3,264,479) (3,229,757 6,040,124 5.2 97.724 4,208,880 737,369 1,052,069 5,998,318 41,806 604,788 3,717,555 775,909 1,940,863 5,534,337 753,387 (124,28 646,594 539,107 (1,500,915) (1,500,000) 16,236,691 17,493,991 154,909 (396,41) $ 15,537,279 $15,236,691 LAPP The property and liability claims unit ended 2016 with 425 open CAPP files. Of those, 209 are general liability claims in litigation or pre -litigation, 50 are auto liability, 122 auto physical damage claims and 44 property claims, Gene Meisner Logan County "'M has always been fair with our claims.We're always satisfied ith the service we receive." Risk Management Insurers are increasingly scrutinizing the management practices and policies of organizations they insure to limit exposure particularly for employment practices claims. For CTSI-managed insurance pools, such scrutiny is all in a day's work, as staff proactively engages in risk management and loss prevention. Many years ago, the position of CTSI human resources specialist was created to specifically address this issue, Since then CT I's human resources specialist has been available to counties to reduce the risk of legal action when it comes to their employment decisions. A highly experienced expert team administers CAPP claims and responds quickly to legal actions. By funding for losses at conservative levels determined by our independent actuary, CAPP's loss reserves maintain financial stability. The loss prevention team works with the CAPP claims unit to spot trends so they can develop training classes and services to address issues affecting county liability exposures. Policy Year 2012 2013 2014 2015 2016 Number of Members 52 52 52 2 52 Average Claim $5,925 $7,687 9,270 $6,258 $5,335 Total Incurred $4,585,614 $5,434,908 $7,082,288 $4,386,656 $3,579,766 Number of Claims Auto Liability 160 162 139 114 115 Auto Physical Damage 259 242 272 260 253 General Liability 271 215 268 242 227 Property 84 88 85 85 76 Total 774 707 764 701 6t1 10 CAPP Loss Ratio (based on CAPP formula) 130% 2012 2013 2014 2015 2016 CAPP Average Cost Per Claim $9,270 $5,925 2012 $7,687 2013 2014 CAPP Subrogation Recoveries $153,328 $135,441 $309,342 $6,258 $5,335 2012 2013 2014 2015 2015 $230,429 2016 $105,725 -r 2016 11 CAPP CAPP Financial Stability CAPP remains financially sound and again this year received a clean opinion for the 2016 audit. As of December 31, 2016, CAPP members' equity is $15.5 million, Return on Investment CAPP members earn equity in funds not used to pay losses. The poolequity is used in the event of unexpected loss development as well as providing a return on investment to members to offset future contributions. The overall return on investment from eq- uity and projected interest income has been 30% since 1988. Since 1988, members have contributed $216.7 million. CAPP paid $73,9 million in losses, recovered $27,8 million of loss costs on behalf of members, returned $475 million of earned equity to members, retains $156,1 million in equity and $6.4 million in loss reserves. $54.4 million has been paid for excess insurance, claims administration, broker fees and other pool expenses. Over $15.4 million in projected interest income (CTSI fees dis- count) has been credited toward member contributions. CAPP Total Contributions 1988 - 2016 $216.7 million Insurance, Claims Mgrnt & Other Expense $58.0 27% Retained Equity $15.5 7% CTSI Fees Discount $15.4 7% Distributed Equity $47.5 22% Net Loss Paid=$'1 O1.6M Paid less $27.8 Recoveries $73.9 34% Loss Reserves $6A 3% 12 CAPP Severity of Claims Total Dollars Incurred 2012 - 2016 Jail Suicide/Attempted or Jail Death $1.7 7% Weather Related $3.6 15% Others $7.7 31% CAPP Frequency of Claims Total Number of lai s 2012 - 2016 Others 1,113 31% Inmate Related 108 3% Slip, Trip or Fall 183 5% Weather Related 190 5% Driving & Vehicle Related $6.5 26% Employment Related $3.3 13% Inmate Related $1.3 5% Street or Roadway 212 6% Driving & Vehicle Related 1,811 50% 13 CWCP The County Workers' Compensation Pool (CWCP) provided 51 counties with workers compensation coverage for 21,877 county employees and statutory volunteers with an annual payroll of more than $443 million. 100% of CWCP member counties renewed their membership. CWCP members' equity was $19 million at the close of 2016. CWCP's excess insurance rate increased by 6.4% for 2016. CWCP maintained low operating costs and returned $700,000 of its equity toward 2016 contributions. Doug Davie Rio Grande County 'We had several property and workers compensation claims which were paid quickly. We are happy with the service we receive from CTSI." CWCP Board of Directors 2016 President/ Com ptroller Terry Hart Commissioner Pueblo County Director David Foy Commissioner Washington County Vice President Darius Allen Commissioner Alamos, County Director John Sandoval Commissioner Conejos County Director Dave Paul Commissioner Teller County Secretary Clifford Lucero Commissioner Archuleta County Director Dick Hodges Commissioner Park County 14 c cp Audited Statutory Statements of Admitted Assets, Liabilities & Members' Surplus December 31, 2016 and 2015 ADMITTED ASSETS Cash and cash equivalents investments Total cash and investments Due from self -funded counties Accrued interest receivable TOTAL ADMITTED ASSETS LIABILITIES AND MEMBERS' SURPLUS LIABILITIES Reserves for losses and loss adjustment expenses Reserve for unallocated loss adjustment expenses Surplus distribution payable Deposits held for self -funded counties Accounts payable Total liabilities MEMBERS' SURPLUS TOTAL LIABILITIES AND MEMBERS' SURPLUS 2016 2015 1,662,558 $ 1,242,937 39,441,038 38,942,846 41,103,596 40,185,783 89,663 269,863 106,264 271,685 41, 463,122 $ 40,563,732 $ 20,171, 049 855,044 1,123,874 250,000 26,020 22,425,987 19,037.135 41,463;122 $ 20,830,563 1,047,282 1,099,648 250,006 27,331 23,254,824 17,308 908 $ 40, 563, 732 CCP Audited Statutory Statements of Income & Members' Surplus For the Year Ended December 31, 2016 and 2015 UNDERWRITING INCOME Member contributions written Reinsurance and excess insurance ceded Total underwriting income UNDERWRITING EXPENSES Net losses and loss adjustment expense incurred Unallocated loss adjustment expense incurred Other underwriting expenses incurred Total underwriting expenses incurred UNDERWRITING GAIN NET INVESTMENT INCOME NET INCOME BEFORE RETURN OF SURPLUS RETURN OF SURPLUS MEMBERS' SURPLUS - BEGINNING OF YEAR CHANGES IN NONADMITTED ASSETS MEMBERS' SURPLUS - END OF YEAR 2016 2015 $ 11, 318, 778 $ 10, 704, 856 (899,372) (789,41D 10,419,466 9,915,444 7,081,825 728,332 738,638 8,548,795 1,870,611 886,134 7,105,798 830,443 748,860 8.685.101 1,230,343 99,020 2,756,745 1,329,363 (1,000,000) (1,000,000) 17, 308, 908 16,709, 391 (28,518) 270,154 19, 037,135 :$17 308, 08 15 CWCP The workers' compensation claims unit ended 2016 with 452 open CWCP claims. Of those, 242 are in- demnity claims and 210 are medical only claims. Policy Year Number of Members ` vera 9 Claim Total Incurred, 2012 Effective Risk and Claims Management CWCP offers affordable coverage to members and pro -actively engages in risk management and training which has proven effective in loss prevention and resulted in smaller premium increases for members. To control costs, CWCP uses nurse case management, to inter- vene quickly to ensuring injured employees receive appropriate care. CTSI also assists counties in developing return -to -work programs and contingency plans for modified duties. CTSI's integrated management policies and procedures mean sizeable cost savings on workers' compensation claims. CTST's claims management facilitates injured employees' speedy re- covery and return to work — whether to a fulitime or temporary modified duty assignment. 2012 - 2016 Legal Costs $1,874,240 6% Medical Costs $19,613,519 57% 51 $7,597 $7,728$389 Number of Claims Medical one. 860 I ndem nit Total 157 1.017 Wage Replacement & Disability Costs $12,786,208 37% 2013 201.4 51 51 2015 51 2016 5-1 $6,896 $7,054 $6,942 $6,.581 $61833a 5 $6,976 OiO $6,921,660 6 016,301 795 167 962 831 827 156 989 170 912 997 _ 166 1,.07 8 16 CWCP Loss Ratio (based on CWCP formula) 104% 100% 95% 75% r 2012 2013 2014 2015 2016 CWCP Average Cost Per Claim $7,597 $61896 $7,054 $6,942 $5,58'1 2012 2013 2014 2015 2016 CWCP Subrogation Recoveries $136,690 2012 $18,191 2013 $35,041 2014 $27,552 2015 $12,073 2016 17 CWCP Return on Investment CWCP members earn equity in funds not used to pay losses. The pool equity is maintained as a safety net to offset market swings and provide a return on investment to members to offset future contributions. CWCP Financial Stability CWCP remains financially sound and again this year received a clean opinion for the 2016 audit As of December 31, 2016, CWCP members/equity is $19 million. Since 1986 members have contributed $229 million. CWCP paid out $148.9 million in losses; recovered $14.5 million of less costs on behalf of members, returned $9.3 million of earned equity to members and holds $20.2 million in loss reserves and $19 million in retained equity. $46.8 million has been paid for excess insurance, claims administration, broker fees and other pool expenses. CWCP Total Contributions 1986 - 2016 $229 million Loss Reserves $20.2 9% Insurance, Claims Mgmt, Broker & Other Pool Expense $46.8 20% Net Loss Paid=$148 9M Paid less $14_5M Recoveries $134.4 59% Distributed Equity $9.3 4% Retained Equity $19.0 8% 18 CWCP Severity of Claims Total Dollars Incurred 2012 - 2016 Slip, Trip or Fall $8.7 26% Others $8.9 26% CP Frequency of Claims Total Number of lai s 2012 - 2O16 Exposure Bodily Fluids/Disease 222 4% Others 2,206 44% Falling or Thrown Object $1.2 4% Driving & Vehicle Related $4.4 13% Training 265 5% Training $1.5 4% Inmate Related 276 6% Body Mechanics $9.3 27% Body Mechanics 859 17% Slip, Trip or Fafl 1,215 24% 19 CHP For 2016, CHP had a minimal 5% rate increase, including prescrip- tions, compared to the national rate increase of 10% - 18% which is for medical only. No rate increase for dental, vision or life. CHP members' equity was $8.76 mil- lion at the close of 2016. CHP maintained the same level of benefits for all plans - medical, dental, vision, and life, and added an- other medical option, HDHP compat- ible with NSA, Increased efforts to market CHP to other local governments to assist all members by spreading the overall risk and cost over a larger base. The County Health Pool (CHP) provides affordable healthcare coverage to 69 public entity members with 8,190 covered participants. SNP Board of Directors 2016 President/ Comptroller Randy Schafer Administrator Phillips County Director Robin Wiley Commissioner Yuma County Vice President Darius Allen Commissioner Ala rnosa County Director Ray Garcia Commissioner Huerfano o County Director Karla Shriver Commissioner Rio Grande County Secretary David White Commissionerr Montrose County Director Mack Louden Commissioner Las Animas County 20 CHP Audited Balance Sheet December 31, 2016 and 2015 ASSETS Cash and cash equivalents Investments Accrued interest receivable Prepaid expenses Deposits LIABILITIES Claims payable Accounts payable Contribution Deposits TOTAL ASSETS LIABILITIES AND NET POSITION TOTAL LIABILITIES NET POSITION Unrestricted TOTAL LIABILITIES AND NET POSITION 2016 2015 $ 3,815,970 $ 3,412,920 10,877,787 9,197,730 57,680 48,150 11,083 11,083 16,490 16,490 $ 14,779,010 $ 12,686,373 $ 5,000,000 $ 5,000,000 1,012,640 958,129 10,007 6,012,640 5,974,136 8,766,370 5,712,237 $ 14,779.010 $ 12, 680, 373 CHP Audited Statement of Revenue, Expenses and Changes in Net Position For the Year Ended December 31, 2016 and 2015 OPERATING REVENUE Contributions OPERATING EXPENSES Claims, net of excess insurance recoveries of $ 8,529,815 and 0,762,886 in 2016 and 2015, respectively Insurance premiums Administration Total operating expenses OPERATING GAIN NON OPERATING REVENUE Net investment income INCREASE IN NET POSITION NET POSITION - BEGINNING OF YEAR NET POSITION - END OF YEAR 2016 2015 $ 56,508,718 $ 54, 506,704 42,334,792 7,764,884 4,478, 843 54, 578, 519 1,930,199 123,934 40,543,456 7,447,625 4,622 061 52,013,142 1,893,562 5,490 2,054,133 1,899,052 6,712,237 4,813,185 $ 8,766,370 $ 6,712,237 21 CHP Affiliation with Anthem C HP Services Five PPO medical plan options Two HDHP/HSA medical plan options Organ and bone marrow transplant coverage Preventive benefits Prescription drug benefits Term life and AD&D benefits optional vision coverage Optional dental coverage Optional dependent life insurance Optional supplemental life insurance coverage Unbundled coverage Dedicated customer service units COBRA and HIPAA administration Health fair benefit CDL physical benefit Educational training for members Webinars rs on health care reform CHP is a county -owned and county -operated healthcare insurance pool which in 2003 voted to affiliate with Anthem Blue Cross & Blue Shield to help provide a long-term solution to rising healthcare costs. CHF has a dedicated customer service and claims unit within Anthem that minimizes any problems that may arise as a result of claims processing which sets us apart from other health insurance carriers. Education CHP offers classes to help employees and their dependents be wise healthcare consumers. The training is modeled after loss -prevention training offered by other CTSI pools and provides information about CLIP, loss analysis, the healthcare industry, trends, costs, and tips for understanding and maximizing use of the plans, In addition, CHP provided multiple webinars regarding applica- tion and compliance of PP CA (health care reform), Policy Year 2016 Number of Members 69 (Number of Claims 76,755 'Cost of Claims $ 5fl,8B4,gflg (Average Member Claim Cost (PMPM) $ 420 Number of Claimants 13,D60 Average Cost Per Claimant (Annual) $ 3,895 22 Cost Savings CHP is the only county -owned health plan provider in Colorado with benefits, contribution rates, and coverage levels determined by representatives from member counties. Pooling resources helps decrease costs of healthcare coverage which is crucial when a national survey projects healthcare increases of at least —n% to 14% (depending on groups and de- mographics) each year through the end of the decade, twice the Consumer Price Index. The pool benefits members through equity growth which minimizes cost increases to members.. CHP is exempt from the State Premium Tax on commissions, resulting in lower costs to members. CHP assists members with HIPAA and COBRA at no additional cost. CHP Rate Trend (`% of change over previous year) 9% 10% 10% I 2012 2013 2014 2015 2016 23 CHP Again this year, we have been effective in maintaining no rate increase in life, and vision and dental programs and maintained the same level of benefit. For 2017, the County Health Pool not only took a 3% net medical/prescrip- tion increase, a 3% dental increase and no increase in vision or life. This is well below the national average. CHP also maintained all current benefit plans and level of coverage and modified all medical plans to be in compliance with PPACA regulations. 2017 Renewal and Insurance Industry Outlook During the 2017 marketing process, the insurance industry was providing increases of ii to 30% or more in overall health insur- ance rates if the above -average 30% plus rate increase for the Exchanges is included. CHP's health insurance rate increased a nominal 3% for 2017 while maintaining its current rich benefit plans. The excess insurance market was willing to continue to provide coverage for larger groups, such as CHP, but based upon in- creased costs and utilization the costs continue to escalate even at the excess layer. CHP members are continually rewarded by larger discounts when negotiating renewal costs for our ASO contract, network contract, prescription program, and excess insurance program since we have bundled them under Anthem. Unlike other health insurance carriers, CHP has been able to effectively control the terms and conditions of benefit coverage. because the members own, operate and effectively define their benefit programs. For 2017, the County Health Pool not only took a 3% overall in- crease, well below the national average, it also maintained all cur- rent benefit plans and levels of coverage and modified all medical plans to be in compliance with PPACA regulations. CHP continues to be the best choice for local governments in Colorado because the increased number of participants allows for sharing of costs of operation, cost containment efforts through multi -year contracts, and education and wellness management programs. CHP remains successful because it continues to be self - governed and controlled by its members which allows the mem- bers to continually define affordability of coverage each year. 24 CHP Severity of edical Claims Total Dollars Incurred 2O16 (in millions) Rx, Vision & Dental $9.54 19% Professional/Other $10.08 20% CHP Frequency of edical Claims Total Number of Claims 2016 Inpatient 553 1% Professional/Other 58!390 76% Outpatient $17.75 35% Outpatient 17!312 23% Inpatient $13.50 26% 25 „----r"-**k -Loss Prevention Goals & objectives The loss prevention team supports county personnel by: Acting as a liaison between members and other CTSI staff. Advising county supervisors on exposures and losses. Creating uniform inspection checklists to ensure inspection continuity and consistency. Developing specialized training programs targeting high frequency claims. Disseminating information on loss prevention subjects. Maintaining a reference library for members. Participating in industry meetings and conferences. Performing quarterly loss prevention inspections for various county departments. Providing up-to-date information on rules, regulations and requirements. Reviewing county policies and practices. Training county contacts, trainers and loss prevention committees. CTSI's loss prevention team provides high -quality, value-added services to Colorado counties that participate in the county -owned insurance pools, The loss prevention team helps counties reduce their exposure to loss while improving the safety and efficiency of their workplaces. Benefits of CTSI Loss Prevention Insurers analyze the effectiveness of county loss prevention programs in evaluating pools and determining coverage and rates. The CTSI Loss Prevention Team, comprised of three risk management experts and a human resource specialist, aims to help counties control insurance costs by preventing loss -causing events. The team expands and upgrades its services to help minimize the risk of accidents and losses and keeps apprised of federal and state rules, regulations, and programs and helps member coun- ties comply. Safety Training On-the-job safety is critical for county governments and their employees. CTSI offers more than 190 courses designed to improve safety. Some, such as CTSI's New Miner Training class, are federally -mandated to comply with Mine Safety and Health Administration (MSHA) regulations. MSHA requires all county employees who haul sand and gravel to document they have completed Experienced Miner or Newly Hired Miner training, which CTSI offers conveniently at no cost to its counties and at a reasonable cost for non-members. Policy Review CTSI works with counties to develop consistent and enforceable policies — whether it is holding employees accountable for their actions, carrying out effective retraining or taking disciplinary actions when employees fail to meet performance standards. Value-added services CT I's loss prevention team offers a range of classes that counties — on their own — generally could not afford. The team also helps counties create building and emergency evacuation plans, set policies, and draw up employee training plans. 26 Loss Prevention Services To Our Pool Members Presented 210 classes to 3,828 county employees. Performed 141 personal computer workstation ergonomic evaluations. Conducted 15 building audits and on -site evaluations and inspections. Attended 35 meetings. Presented one webinar. Presented the five-year loss analysis to 53 counties. Human Resource Services To Our Pool Members Presented 99 classes to 2,092 county employees. Performed 16 HR policy reviews. Held 24 HR phone consultations. Attended 10 meetings. Attended 2 site visits. Art Goodtimes San Miguel County "For the 20 years. 'Me been in office, CTSI has really impressed me with their educational programs to help counties prevent claims." 27 Loss Prevention CTSI Telephone Consultation CTSI provides consulting and technical information on a variety of topics including, but not limited to: ACA compliance Blood borne pathogens Countywide coordination of policies and procedures Civil rights discrimination DOT regulations Drug testing policies Employee discipline and termination issues Employee manuals Facilities exposure FMLA LA regulations Harassment prevention Injuries and accidents Job descriptions Liability risks New construction review OSHA and MSHA regulations Payroll records and financial controls Record keeping procedures Safety problems Sexual harassment Privacy & document retention & deletion practices Employee use of social media County Staff Trained on Required and Requested Topics Civil rights, discrimination, and harassment prevention, MSHA refresher and new miner training, flagger certification, and coaching the experienced driver topped the 2016 list of most popular classes for CTSI. In the HR regulatory area, civil rights, discrimination and harassment prevention, EEO compliance, and drug and alcohol awareness continued to be among the most frequently requested classes. Both new and experienced employees are required to have training in these topics, necessitating frequent update training. With over 20,000 county employees and statutory volunteers in- sured by the county pools, keeping up with the training required by law on many topics requires a year-round effort involving ev- eryone. CTSI helps keep your county on track by keeping records of all the classes given, the attendance reports, and how often and what topics are required to be given. Human Resources onsultation & Policy Review The HR Specialist responded to requests for technical assistance, research, and loss prevention advice by phone or email. The HR Specialist also held 9 individual onsite meetings with various counties to assist with various human resource needs. County and department policies are reviewed by the HR Spe- cialist upon request by individual counties. There were 16 such policies reviewed from a risk management and loss prevention perspective in 2016. With over 51 member counties and multiple policies in each county, it takes a planned effort by each county to assure that all department and county policies stay current. Salary Survey CTSI staff produces an annual salary survey for county pool members. The 2016 report covered 29 counties, 43 position benchmarks, and over 4,000 pieces of data. The amount of data and number of county participants makes it a very accurate source for comparing other salary surveys to the CTSI salary survey. 28 CTSI Film Library Online Films Others 35 Road & Bridge 13 Risk Management & Safety 14 Human Resources 35 resee; First Aid & Health 11 CTST Film Library All Films Risk Mgmt & Safety 99 First Aid & Health 67 Others 225 Chemical Safety 10 Sheriffs Department 13 MSHA 42 Human Resources 62 Road & Bridge Sheriffs Department 364 n0 MSHA. 78 Defensive Driving 63 Media resources CTS I's loss prevention team maintains an extensive reference and video library of more than 200 books and 1,000 videotapes, CDs, and DVDs, available at no cost to member coun- ties covering a variety of loss preven- tion topics, Many of these same OVOs are available online at ww.ctsrfilms.org, The loss prevention team encourages member counties to use the library as a tool to decrease exposure to loss - causing risks. 29 The CTSI Loss Prevention Team The IVIHA refresher courses on mine safety and new miner training were at the top of the list, with the team presenting 67 classes to 1,505 county employees. Human resources classes are always well -attended courses, and this year was no different, with 2,O92 employees attending 99 classes covering subjects such as harassment prevention, workers compensation, and. HIP `A to a name a few. Road and bridge flagging classes are very popular. CTSI certified 491 employees during 30 classes. With high losses in the area of driving, more than Boo employees attended one of the 45 classes related to improving their driving skills. In all, the loss prevention team presented 309 classes to 5,920 county employees, all in an effort to reduce claims before they had a chance to happen. The CM Loss Prevention Team provides high -quality, value-added services to help member counties reduce exposure to loss while improving the safety and efficiency of their workplaces. CTSI loss control services make a difference. Number of C'l'asses by Topic MSHA 67 Road & Bridge 32 Human Resources 99 Body Mechanics 8 Driving 45 Drug & Alcohol 8 MSHA 1,505 General Safety 50 Road & Bridge 521 Number of Attendees by Topic Body Mechanics Driving 68 805 Human Resources 2,092 Drug & Alcohol 102 General Safety 827 30 CAPP Employment Claims - Total $ Incurred $1,288,015 $904,577 2012 2013 $772,084 $260,905 $50,004 2014 2015 2016 CAPP Employment Claims - Number ber of Claims 28 27 22 12 9 2012 2013 2014 2015 2016 I CAPP Employment Claims -Average $ Incurred $32,310 $58,546 $28,596 $21,742 I _ $5,556 2O12 2O13 2014 2015 2016 31 Loss Prevention Loss Prevention Claims Analysis CAPP and CWCP loss analysis reports help the loss prevention team and member counties to target high -frequency and high -severity claims. The loss prevention team can then help counties improve their work sites to prevent claims. CTSI's loss prevention team also conducts audits to help identify loss -causing processes. The team concentrates on auditing work areas and work processes, plus various maintenance and construction processes. CAPP Loss Analysis - 2016 Claims Claim Type Frequency Severity 1 Auto Physical 2 General 3 Auto Liability 4 Property Liability Damage I General 2 Property 3 Auto 4 Auto Liability Physical Liability Damage Accident Type Frequency Severity 1 Driving & Vehicle 2 Driving -Backing 3 Driving -Struck 4 Street or Roadway Related Animal 1 2 3 4 Weather Related Driving & Vehicle Employment Jail Suicide/Attempted Related Related or Jail Death Cause 1 2 3 4 Auto Collision Auto Liability General Property Frequency -Property Damage Liability -Property Damage Severity 1 General Liability -Civil Rights 2 Property 3 General Liability -Bodily Injury 4 Auto Collision 32 CWCP Loss Analysis - 2016 Claims Claim Type Frequency Severity 1 Medical 1 Temporary Total or Temporary Partial 2 Temporary Total or Temporary Partial 2 Medical Accident Type Frequency Severity 1 2 3 Slip, Body Driving Trip Mechanics or & Vehicle Fall Related 'I 2 3 4 Slip, Body Inmate Lifting Trip Mechanics or Related Fall 4 Fatality Injury Type I 2 3 4 Strain Fatality Pain Fracture Severity 1 2 3 4 Strain Pain Contusion, Contageous Bruise Frequency Disease Body Part Frequency Severity 1 2 Multiple Hand Body Parts 1 2 3 Multiple Shoulder Knee Body Parts 3 4 Knee Back 4 4 Head Cause Frequency 1 2 3 4 Ice, Vehicle Other Bodily Snow, Person Motion Sleet Severity Confrontation el 2 3 4 Ice, Bodily Other Vehicle Snow, Motion Person Sleet Confrontation 33 Loss Prevention Classes Held Accident & Incident Investigations for Supervisors Active Threat Response & Workplace Safety ADA Awareness Briefing ADA Compliance for Supervisors and Managers Backhoe &Trenching Bloodharne Pathogens CDL Drug and Alcohol Awareness CDL Supervisor Drug and Alcohol Recognition Civil Rights, Discrimination, and Harassment Prevention Coaching the Emergency Veh Operator -Ambulance III Coaching the Emergency Veh Operator -Police II Coaching the Experienced Driver III Coaching the Passenger Van Driver III Colorado Code of Ethics Dealing with Difficult People Disaster & Emergency Preparedness Drug and Alcohol Recognition for Supervisors Ethics for Personal Care Providers First Aid with Stroke Briefing Flagger Certification FMLA Basic Rules FMLA for Supervisors Forklift Safety Handling Cleaning Chemicals Safely Harassment Prevention Refresher Hazard Awareness & Body Mechanics HazComiGHS HazCom/GHS for Supervisors HIPAA Privacy and Security Job Interviewing and Selection Managing Supervisors Liability Managing Workers' Compensation & Modified Duty MSHA Annual Refresher -8 Hour MSHA New Miner Train ing-24 Hour PC Workstation Ergonomics Group Briefing Pre -Employment and Post Employment Screening Reasonable Suspicion Drug & Alcohol Training for Supervisors Safety in the Home Sexual Harassment Prevention Briefing Supervisory Skills I Supervisory Skills II Workers' Compensation for Supervisors 34 Thank you for your commitment to excellence LAPP Members Alamosa Archuleta Baca Bent Chaffee Cheyenne Clear Creek Conejos Costilla Crowley Custer Delta Dolores Eagle Elbert Fremont Garfield Gilpin Grand Gunnison Hinsdale Huerfano Jackson Kiowa Kit Carson La Plata Lake Las Animas Lincoln Logan Mineral Moffat Montrose Morgan Otero Ouray Park Phillips Prowers Pueblo Rio Blanco Rio Grande Routt Saguache San Juan San Miguel Sedgwick Summit Teller Washington Weld Yuma CWCP Members Alamosa Archuleta Baca Bent Chaffee Cheyenne Clear Creek Conejos Crowley Custer Delta Dolores Eagle Elbert Fremont Garfield Gilpin Grand Gunnison Hinsdale Huerfano Jackson Kiowa Kit Carson La Plata Lake Las Animas Lincoln Logan Mineral Moffat Montezuma Montrose Morgan Otero Ouray Park Phillips Prowers Pueblo Rio Blanco Rio Grande Routt Saguache San Juan San Miguel Sedgwick Summit Teller Washington Yuma CHP Members Alamosa County Archuleta County Aspen Springs Baca County Buena Vista School District Busk Ivanhoe Water Authority CCI staff Cheyenne County Cheyenne Wells Clear Creek Rec Copper MT Cons Metro CTSI staff Denver SE Water & Sanitation Dillon Eagle Cty Charter Academy Eagle Health Services ECCOG Elbert County Elbert County Library District Georgetown Hinsdale County Hinsdale School District Hot Sulphur Springs Huerfano County Ignacio School District Jackson County Johnstown Keefe Memorial Hospital Kiowa County Kit Carson Kit Carson County Kit Carson Health Services Kremmling Lake County Lake Dillon Fire & Rescue Lake Durango Water Authority Lake Fork Health Lamar Las Animas County Leaclville Lincoln County Logan County Lone Cone Library District Milliken Mineral County Minturn Montezuma County Montrose County Morgan County NECALG NWCCOG Norwood Ouray County Phillips County Pine River Irrigation Prowers County Pueblo Reg. Bldg Dept Red Cliff RFTA Rifle Rio Blanco County Rio Grande County San Miguel County Sedgwick County Sedgwick Health Ctr Sterling Superior Walden Washington County Yuma County 35 tTSI Board of Directors 2017 President Terry Hart (MCP) Commissioner Pueblo County Secretary Kevin Karney (CAPP) Commissioner Otero County Vice President Darius Allen (CAPP) Commissioner Alamosa County Director Steve Wadley (DEP) Commissioner Archuleta County Treasurer Randy Schafer (CHP) County Administrator Phillips County Director Mack Louden(CHP) Commissioner Las Animas County CAPP Board of Directors 2017 President/Comptroller Darius Allen Commissioner Alamosa County Vice President Kevin Karney Commissioner Otero County Secretary Terry Hart Commissioner Pueblo County Director John Martin Commissioner Garfield County Director Rod Felton Commissioner Cheyenne County Director Jim Lwetzig Corn missioner Morgan County Director Sean Conway Commissioner Weld County CWCP Board of Directors 2017 President/Comptroller Terry Hart Commissioner Pueblo County Vice President Darius Allen Commissioner Alamosa County Secretary Steve Wadley Commissioner Archuleta County Director Dave Donaldson Commissioner Logan County Director John Sandoval Commissioner Conejos County Director Dave Paul Commissioner Teller County Director Ron Cook Commissioner Primers County CHP Board of Directors 2017 President/Comptroller Randy Schafer Administrator Phillips County Vice President Darius Allen Corn missioner Alamosa County Secretary Robin Wiley Commissioner Yuma County Director Keith Caddy Commissioner Montrose County Director Ray Garcia Commissioner Huerfano County Di rector Karla Shriver Commissioner Rio 'Grande County Director Mack Loudon Commissioner Las Animas County 36 Our History County Technical Services, Inc. and the pools it administers is the outgrowth of county commissioners from across Colorado uniting in the mid -1980s to face the turbulent times when commercial insurance company premiums spiked upward and county insurance policy cancellations were the norm. They sought answers and in 1984 found the solution: to pool their resources andform three county -owned self-insurance pools administered by the risk management department of Colorado Counties, Inc. The County Health Pool (GHP), the County Workers' Compensation Pool (CWGP), and the Colorado Counties Casualty and Property Pool (LAPP). After eight successful years of pool administration, the county commissioners liked what they were seeing as owners of three top-notch insurance pools. With that, they decided to expand the services they were receiving to include a vast array of technical and financial services for counties. The result-CTSI was incorporated as a separate county -owned and operated entity in 1992. Today, beyond its insurance, risk management and loss prevention roots, CTSI has expanded its services to offer expertise to counties in such areas as: Human Resources Third -Party Claims Administration & Consultation Grant Writing Centralized County Administration Financing Alternatives Specialized Coverages & Programs Training, Education and Regulatory Compliance CTSI's Board of Directors is comprised of elected officials and county -government staff from throughout Colorado, who keeps up with trends and gauge needs of county governments so the agency can respond quickly to Colorado's changing insurance and public -policy landscape. CTSI provides such cutting -edge services and other benefits while holding administrative costs to less than half the industry average. Most of CTSI s services are available to member counties at no additional costs; non-members tzre welcome to use OTSI services on a fee -for -service basis, County Technical Services, Inc* Helps counties with their day-to-day insurance and loss -prevention needs. Is there when a loss occurs, providing guidance, expertise, a helping hand and calming voice. On behalf of the county pools, negotiates competitive excess insurance rates, broker fees and other outside service provider. fees using the clout of its member counties. As not -for-profit governmental entities, the pools' and CTSI's equity belongs to its members. Provides third -party claims and loss prevention services to outside entities thus lowering the county member costs for CTSIservices. Acts as the change agent for members and continually develops programs and services needed to accommodate the changing landscape of county government. - CTSI Serving Colorado's Counties County Technical Services, Inc. 800 Grant St., Suite 400 Denver, CO 80203 (303) 861-0507 www.ctsi.org Hello