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Mature <br /> <br />Expected Claims <br />$300,000 <br /> <br />$250,000 <br />$200,000 <br />$150,000 <br />$100,000 <br /> <br />The difference between the mature claims and mature claims is the opportunity <br />to establish the reserve. The CIGNA self-funded renewal is based on mature <br />claims. <br /> <br />6. Self-funding offers several advantages for the County: <br /> <br />aG <br /> <br />A self-funded contract allows the County to cam interest on any reserve <br />that you establish. Currently, the County does not cam interest on <br />reserves that are established. <br /> <br />b. The Count), automatically lowers its costs by eliminating the 2% premium <br /> tax that is paid to the state of North Carolina. <br /> <br />c. The County has more flexibility with regard to plan designs. State <br /> mandates no longer apply. <br /> <br />The County will only fund the actual paid claims, not pay the estimated <br />claims to an insurance cartier. The estimated claims come in the form of <br />the incurred but not reported (IBNR.) claims reserve that insurance carriers <br />must establish. <br /> <br />The administrative charges for the self-funded plan are approximately <br />11.6%. For the insured contract, the administrative charges are <br />approximately 18% (A 6.4% savings). <br /> <br />Reports- On an insured basis, CIGNA is limited'in the kind of reporting <br />detail it can provide. On a self-insured basis, CIGNA can provide more <br />detailed claims information that will allow the County to make furore plan <br />design changes based on actual utilization. Making appropriate plan <br />design changes will improve the costs for the County and the employees. <br /> <br />The County's reserve should be maintained m 25% of the expected claims and the <br />attaelunent point. The reserve is usually established for the benefit of the plan. <br />25% of the expected claims for 2004 - 2005 are approximately $882,674. Per the <br /> <br /> <br />