Originally Posted by
DLax85
"Double" Yikes...and a hmmm
From the hard copy mailer you should have received this week if you're enrolled in the plan:
"The total premiums paid for the plan year ending 12/31/2015 were $3,204,250
Benefits paid to participants and beneficiaries were $3,402, 266
Administrative expenses and taxes were $531,906"
Thus, it appears the plan ran a premium to benefits deficit of ($198,016), which is 6.18% of total premiums.
And, an overall premium to benefits + expenses + taxes deficit of ($729,922), which is 22.78% of total premiums
Admittedly, I have not studied previous annual reports and rate increases, but the "doubling" on any rate is always eye opening
In the interest of transparency I would have appreciated the breakdown between "expenses" and "taxes" in the $531,906
Those two amounts combined represent 72.87% of the overall deficit
Hmmmm
With the rate increase, next year they will collect a little over $7.4M. That is $4.2M more than this year, yet the total deficit was only $729K. Take away the deficit from the $4.2M increase and you are left with $3.4M surplus. Are they saying that the payout is going to come close to doubling what they paid last year.
How much profit did they make in years past?
One year they run a deficit so they raise rates 131%.
If they only pay out $1M next year will rates drop below the 2016 rates?
