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HomeMy WebLinkAboutItem #4 Health Plan TrustROY & ASSOCIATES, INC. Consulting Actuaries 3115 East Lion Lane, Suite 160 Salt Lake City, Utah 84121 (801) 272-4777 FAX (801) 272-4791 September 2, 2026 Mr. Scott Gummersall, Director of Human Resources City of Chubbuck 5160 Yellowstone Ave. Chubbuck, ID 83202 RE: City of Chubbuck Self -Funded Medical Plan Proformas and Contribution Certification for the 10/1/2026 to 9/30/2027 Plan Year Scott: Per your request, we have prepared a 15 -month proforma financial statement (balance sheet including projected reserves and income statement) and contribution certification for the period ending 9/30/2027 for the City of Chubbuck Health Plan Trust. This certification includes the new recommended contribution rates to be effective 10/1/2026. In accordance with Idaho Code Section 41-4004(2)(a), this certification should be filed with the Idaho Department of Insurance no later than August 31, 2026. Since we are past that date, you will want to file this certification as soon as possible. In accordance with the Idaho Code, we recommend that you also file copies of any changes in your third party administrative services agreement, stop loss reinsurance agreements or other contracts and agreements with the Idaho Department of Insurance with this certification. If those agreements are not currently ready, we recommend that you submit a copy of your acceptance of the Blue Cross of Idaho proposal until the agreements are ready. It is our understanding that other than regular updates in premium amounts, aggregate stop loss attachment points, administrative charges and expected professional fees, there have been no changes in plan benefits and provisions, reinsurance agreements, administrative service agreements, or consulting and professional agreements from the corresponding arrangements for the 10/1/2025 to 9/30/2026 plan year. It is expected that on a best estimate claims cost basis there will be no change in the surplus. Surplus is projected to be $1,369,000 at the end of the next plan year with the proposed contribution rate increases as shown in the proformas. We have included the following exhibits: • Exhibit 1 - Proforma Balance Sheet - Best Estimate Claims Cost • Exhibit 2 - Proforma Surplus Reconciliation and Surplus Adequacy - Best Estimate Claims Cost • Exhibit 3 - Proforma Income Statement - Best Estimate Claims Cost • Exhibit 4 - Proforma Balance Sheet - Aggregate Stop Loss Attachment Claims Cost • Exhibit 5 - Proforma Surplus Reconciliation and Surplus Adequacy - Aggregate Stop Loss Attachment Claims Cost • Exhibit 6 - Proforma Income Statement -Aggregate Stop Loss Attachment Claims Cost • Exhibit 7 - Projection of 9/30/2027 IBNR Reserve • Exhibit 8 -Projected Claims Costs -10/1/2026 to 9/30/2027 • Exhibit 9 -Projected Expenses -10/1/2026 to 9/30/2027 • Exhibit 10 - Contribution Certification - Based on Aggregate Stop -loss Attachment Point Claims Costs • Exhibit 11- Contribution Certification - Based on Projected Claims Costs We recommend the following monthly plan contribution rates for the 10/1/2026 to 9/30/2027 plan year: Based on the analysis provided below, we have determined that the recommended contribution rates are reasonable and provide a margin for adverse experience and all costs of operations. The recommended contribution rates are neither inadequate or excessive nor unfairly discriminatory. They are appropriate for the classes of risk for which they have been computed. The emerging costs will vary from those presented in these exhibits to the extent that actual experience differs from that projected by the actuarial methods and assumptions employed in preparing this certification. The full amount of these contributions is to be paid by the employer. There is no employee participation anticipated in the contribution rate. Monthly Prior Contribution Monthly Rate Contribution Effective Percentage Coverage Rate 10/1/2026 Increase Employee Only 797.81 910.30 14.1% Employee and Spouse 1,531.20 1,747.10 14.1% Employee and Children 1,396.72 1,593.66 14.1% Family 2,035.39 2,322.38 14.1% Overall Rate Increase 14.1% Based on the analysis provided below, we have determined that the recommended contribution rates are reasonable and provide a margin for adverse experience and all costs of operations. The recommended contribution rates are neither inadequate or excessive nor unfairly discriminatory. They are appropriate for the classes of risk for which they have been computed. The emerging costs will vary from those presented in these exhibits to the extent that actual experience differs from that projected by the actuarial methods and assumptions employed in preparing this certification. The full amount of these contributions is to be paid by the employer. There is no employee participation anticipated in the contribution rate. Data, Methods, Assumptions and Analysis The plan's surplus at 6/30/2026 of $1,444,375 is significantly higher than the approximately $500,000 of required surplus. The plan administrator intends to hold back $90,000 of the October 2026 scheduled contribution under the new contribution schedule to reduce the excess surplus. We estimate that with that $90,000 contribution hold back, the plan income for the 2026/2027 plan year would be a loss of $78,329 so the plan will establish a contribution deficiency reserve on 9/30/2026 of $78,329 to cover that loss. That contribution deficiency reserve will be released in October 2026 to offset the majority of the $90,000 contribution hold back and results in $0 of projected earnings for the plan year under the best estimate claims cost basis as shown in Exhibit 3. The attached Exhibit 1 shows the proforma balance sheet using the projected claims costs developed in Exhibit 8. The proforma balance sheet uses as its starting point the 6/30/2026 trust financial statements. The IBNR at 6/30/2026 of $139,372 is increased to the amount shown in Exhibit 7 over the remaining 15 -month projection period. It also shows the contribution deficiency reserve described above. It is assumed that other than the IBNR amounts all claims and expenses are paid as presented so there are no unpaid claims or expenses shown other than the continuation of those amounts shown at 6/30/2026. Surplus decreases to $1,368,856 as of 9/30/2026 and then remains at that level through 9/30/2027. Exhibit 2 shows the reconciliation of surplus over the projection period. It also shows the calculation of the minimum required surplus. Due to the increase in the aggregate stop loss attachment point, the contribution rates based on the best estimate claims costs are about 10% less than the contribution rates based on the aggregate stop loss attachment points. As shown in Exhibit 2, under the minimum surplus Method 2, the minimum surplus requirement for the 2026/2027 plan year is approximately $139,000 since the recommended contribution rates are slightly lower than the aggregate stop loss attachment points. We recognize the Department of Insurance will require the use of $654,823 under Method 1 since the aggregate stop loss agreement does not include a three month runoff period. It is still helpful to note the favorable results under Method 2. As shown in Exhibit 2, there is sufficient surplus in all months to cover the minimum surplus requirement under Method 1. Exhibit 3 is the 15 -month income statement proforma using the certified contribution rates shown in Exhibit 11. Claims costs are based on the projected claims costs developed in Exhibit 8. The specific and aggregate stop loss premiums expense is calculated using the respective stop loss premiums shown in Exhibit 10 multiplied by the projected number of employees in each coverage class also as shown in Exhibit 10. The number of employees is assumed to start at 113 and increase to 121 over the projection period. The other expenses are as shown in Exhibit 9. As noted above, $90,000 in contributions is held back in October 2026 and offset by a release of the contribution deficiency reserve of $78,329 resulting in a projected income of $0 for the new plan year. Exhibits 4, 5 and 6 are the corollaries to Exhibits 1, 2 and 3 with the claim costs in Exhibits 4, 5 and 6 being based on the aggregate stop loss attachment points. Under this scenario the plan has end of plan year surplus of $1,114,298 compared to the surplus in Exhibit 1 of $1,368,855. In the highly unlikely case that claims increase to the aggregate stop loss attachment point level, the plan has more than adequate surplus to deal with the adverse deviation. No interest is assumed to be earned on cash balances in any of the scenarios. Exhibit 7 shows the development of the 9/30/2027 IBNR reserve and also shows the increase in the reserve margin and claims settlement expense margin from the 6/30/2026 IBNR reserve certification. The claims completion factors are the same as those used in the 6/30/2026 IBNR reserve certification. Exhibit 8 shows the development of the projected 10/1/2026 to 9/30/2027 claims costs. The IBNR amounts do not include the 25% margin or the administrative costs of the claims runoff included in the financial statement IBNR. The methodology rolls the current estimated claims costs forward at the documented trend rates. For the 2026/2027 plan year, there are three members where the excess limits under the specific stop loss treaty were increased above the current $50,000. The combined additional claims exposure from these increased limits is $205,000. As shown in Exhibit 8, in completing our calculations, we have assumed an estimated claims cost of 50% of the excess exposure. Should actual claims exceed this amount, there is no change in the aggregate stop loss limit shown in the report which continues to protect the plan. The claim costs are then allocated to coverage class using the specific stop loss premium ratios from the 2019/2020 plan year. These same ratios are used to allocate the current year specific stop loss premiums and aggregate stop loss attachment points to the different coverage classes. The experience from the prior plan year is also included in the analysis. Exhibit 9 provides the projected expenses for the 10/1/2026 to 9/30/2027 plan year. The Blue Cross of Idaho fee is based upon the Blue Cross of Idaho TPA contract. The other projected expenses are self explanatory and have changed little from the prior year. Exhibits 10 and 11 illustrate the development of the 10/1/2026 to 9/30/2027 contribution rates. The recommended rates are highlighted in yellow in the middle of the page. The proposed contribution rates best estimate claims (Exhibit 11) contain a margin of .3% for adverse claim deviation. Should claims reach the aggregate stop loss attachment point (Exhibit 10), they will be deficient by approximately 10%. It is our understanding that the Trust will maintain specific stop loss coverage for claim amounts in excess of $50,000 for claims incurred during the current and prior plan year and paid within the plan year. As noted above, for the 2026/2027 plan year there are three members who have higher excess claim limits under the specific stop loss coverage. The Trust will also maintain aggregate stop loss reinsurance at the attachment points shown in Exhibit 10 for claims incurred in the current and prior plan year and paid within the plan year. Reliance In completing this analysis, we have relied on data which includes but is not limited to paid claims information, stop loss rates, contract administration rates, projected administrative expenses, membership data, summary plan descriptions, reinsurance contracts, and other information provided by Blue Cross of Idaho, Black Ink Benefits and the City of Chubbuck. We have not audited the data but have reviewed the data for reasonableness and consistency. It is likely that actual experience will be different from the assumptions used in these calculations, resulting in actual results being different from projected results. To complete our work, we take input (the data provided along with selected actuarial assumptions) and process that information using computer programs and calculations which then generate the output or valuation results provided in this report. This process is considered a model under Actuarial Standard of Practice No. 56 - Modeling. The purpose of this model and its calculations is to provide recommended contribution rates for the City of Chubbuck Health Plan Trust. We believe the actuarial assumptions used in completing this model are consistent with one another. We find the output of the model to be reasonable and are not aware of any model limitations or weaknesses. We have completed this work ourselves and have not relied on models developed by others or other experts unless otherwise disclosed in this report. Conclusion I am a Fellow of the Society of Actuaries, a Member of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries, including education and experience requirements, to render the actuarial opinion contained herein. The calculations reflected in this report have been made on a basis consistent with our understanding of the Code of Professional Conduct of the American Academy of Actuaries, and relevant Actuarial Standards of Practice of the Actuarial Standards Board. We find the assumptions used for measurements are reasonable and appropriate for the purposes for which they have been used. Should you or others have any questions regarding the information presented in this letter and attachments, please dont hesitate to email or call me at 385-290-2723. Sincerely, Kent H. Cannon, FSA, MAAA Principal cc: Carlos Aponte, Black Ink Benefits Exhibit 1 City of Chubbuck Self-funded Medical Plan Proforma Balance Sheet - Best Estimate Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Balance Sheet Assets Cash on hand and on deposit 1,761,761 1,767,449 1,773,079 1,774,209 1,686,711 1,691,879 1,697,111 1,698,483 1,703,845 1,709,272 1,712,580 1,718,137 1,723,695 1,727,003 1,728,561 1,734,118 Certificates of deposit - - - - - - - - - - - - - - - - Short-term investments - - - - - - - - - - - - - - - - Accountsforanyotherinvestedassets, ifany - - - - - - - - - - - - - - - Other invested assets - - - - - - - - - - - - - - - - Subtotal - cash and invested assets 1,761,761 1,767,449 1,773,079 1,774,209 1,686,711 1,691,879 1,697,111 1,698,483 1,703,845 1,709,272 1,712,580 1,718,137 1,723,695 1,727,003 1,728,561 1,734,118 Uncollected contributions - - - - - - - - - - - - - - - - Interest and investment income due and accrued - - - - - - - - - - - - - - - - Stop Loss Receivable from carrier - - - - - - - - - - - - - - - - Prepaid Expenses - - - - - - - - - - - - - - - On deposit with TPA - - - - - - - - - - - - - - Other assets Total Assets 1,761,761 1,767,449 1,773,079 1,774,209 1,686,711 1,691,879 1,697,111 1,698,483 1,703,845 1,709,272 1,712,580 1,718,137 1,723,695 1,727,003 1,728,561 1,734,118 Liabilities Claims unpaid - - - - - - - - - - - - - - - - Incurred but not reported (IBNR) liability 139,372 142,515 145,763 149,010 152,153 155,401 158,544 161,791 165,039 167,972 171,220 174,363 177,611 180,754 184,001 187,249 Unearned contributions - - - - - - - - - - - - - - - - Stop Loss Premiums due but unpaid - - - - - - - - - - - - - - - - Claimadministrationfees/ TPA fees payable - - - - - - - - - - - - - - - - Taxesdueoraccrued - - - - - - - - - - - - - - - - ContributionDeficiencyReserve 78,329 - - - - - - - - - - - - Other liabilities 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 Total Liabilities 317,386 320,529 323,777 405,353 330,167 333,415 336,558 339,806 343,053 345,987 349,234 352,377 355,625 358,768 362,015 365,263 Surplus Additional Surplus Contribution - - - - - - - - - - - - - - - Unassigned earned/(lost) surplus 1,444,375 1,446,920 1,449,302 1,368,856 1,356,544 1,358,464 1,360,553 1,358,677 1,360,791 1,363,285 1,363,345 1,365,760 1,368,070 1,368,235 1,366,545 1,368,855 Total Surplus 1,444,375 1,446,920 1,449,302 1,368,856 1,356,544 1,358,464 1,360,553 1,358,677 1,360,791 1,363,285 1,363,345 1,365,760 1,368,070 1,368,235 1,366,545 1,368,855 Total Liabilities and Surplus 1,761,761 1,767,449 1,773,079 1,774,209 1,686,711 1,691,879 1,697,111 1,698,483 1,703,845 1,709,272 1,712,580 1,718,137 1,723,695 1,727,003 1,728,561 1,734,118 Exhibit 2 City of Chubbuck Self-funded Medical Plan Proforma Surplus Reconciliation and Surplus Adequacy - Best Estimate Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Reconciliation of Surplus Specific stop loss exposure not applicable to aggregate Estimated total expenses (incl stop loss prem) 708,319 908,535 Estimated contributions 2,019,697 2,619,293 Difference (minimum of SO) 251,847 126,319 110% of difference 277,032 138,950 Total surplus, beginning of period 1,209,433 1,444,375 1,446,920 1,449,302 1,368,856 1,356,544 1,358,464 1,360,553 1,358,677 1,360,791 1,363,285 1,363,345 1,365,760 1,368,070 1,368,235 1,366,545 Total Net gain/ (loss) 234,942 2,545 2,382 (80,447) (12,312) 1,920 2,089 (1,876) 2,114 2,494 60 2,415 2,310 165 (1,690) 2,310 Total surplus, end of period 1,444,375 1,446,920 1,449,302 1,368,856 1,356,544 1,358,464 1,360,553 1,358,677 1,360,791 1,363,285 1,363,345 1,365,760 1,368,070 1,368,235 1,366,545 1,368,855 Adequacy of Surplus Total surplus, end of period 1,444,375 1,446,920 1,449,302 1,368,856 1,356,544 1,358,464 1,360,553 1,358,677 1,360,791 1,363,285 1,363,345 1,365,760 1,368,070 1,368,235 1,366,545 1,368,855 Minimum required surplus 504,924 504,924 504,924 504,924 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 Excess (deficient) reserves 939,451 941,996 944,378 863,931 701,721 703,641 705,730 703,854 705,968 708,462 708,522 710,937 713,247 713,412 711,722 714,032 Calculation of Minimum Required Surplus (Plan Yr) Method 1 Average monthly contribution x three 504,924 654,823 Method 2 Aggregate dollar stop -loss attachment point 1,563,225 1,837,076 Excess claims over aggregate stop loss attachment point Specific stop loss exposure not applicable to aggregate Estimated total expenses (incl stop loss prem) 708,319 908,535 Estimated contributions 2,019,697 2,619,293 Difference (minimum of SO) 251,847 126,319 110% of difference 277,032 138,950 Method 1 504,924 654,823 Exhibit 3 City of Chubbuck Self-funded Medical Plan Proforma Income Statement - Best Estimate Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Statement of Income Operating Revenue Contributions from Employer 1,482,272 181,856 177,785 177,785 209,091 211,413 212,324 214,646 216,393 218,716 222,785 222,785 222,785 222,785 222,785 222,785 Contribution Hold Back - - - - (90,000) - - - - - - - - - - - Stop Loss Recovered - - - - - - - - - - - - - - - - Other Revenue 25,584 Total Operating Revenue 1,507,856 181,856 177,785 177,785 119,091 211,413 212,324 214,646 216,393 218,716 222,785 222,785 222,785 222,785 222,785 222,785 Operating Expenses Claims Paid 1,069,457 119,789 117,049 117,049 126,300 127,733 128,225 129,658 130,708 132,142 134,626 134,626 134,626 134,626 134,626 134,626 Stop Loss Recoveries (207,678) - - Change in IBNR (47,764) 3,143 3,248 3,248 3,143 3,248 3,143 3,248 3,248 2,933 3,248 3,143 3,248 3,143 3,248 3,248 Claims Incurred 814,015 122,932 120,296 120,296 129,442 130,981 131,368 132,906 133,956 135,075 137,873 137,768 137,873 137,768 137,873 137,873 Stop Loss coverage expense paid - specific 437,128 46,330 45,271 45,271 62,678 63,389 63,633 64,345 64,866 65,577 66,810 66,810 66,810 66,810 66,810 66,810 Stop Loss coverage expense paid -aggregate 2,405 2,362 2,362 2,510 2,532 2,554 2,576 2,598 2,620 2,664 2,664 2,664 2,664 2,664 2,664 Pharmacy Rebates (15,830) (2,000) (2,000) (2,000) - - - - - - - - - - - - Claims administration/TPA fees paid 73,731 6,182 6,073 6,073 6,717 6,776 6,835 6,894 6,953 7,011 7,129 7,129 7,129 7,129 7,129 7,129 Management/Professional Service fees paid 51,808 2,260 2,220 6,720 7,172 4,592 4,612 7,882 4,652 4,672 6,962 4,712 4,712 6,962 8,712 4,712 Taxes paid 167 1,116 1,096 1,096 1,125 1,135 1,145 1,830 1,165 1,175 1,195 1,195 1,195 1,195 1,195 1,195 ACA -PCORI Fee 500 86 85 85 87 88 89 89 90 91 92 92 92 92 92 92 Change in Contribution Deficiency Reserve (88,605) - - 78,329 (78,329) - - - - - - - - - - - Other operating expenses Total Operating Expenses 1,272,914 179,311 175,402 258,231 131,403 209,493 210,235 216,522 214,279 216,222 222,725 220,370 220,475 222,620 224,475 220,475 Operating Gain (Loss) 234,942 2,545 2,382 (80,447) (12,312) 1,920 2,089 (1,876) 2,114 2,494 60 2,415 2,310 165 (1,690) 2,310 Net Income (Loss) 234,942 2,545 2,382 1 (80,447) (12,312)1 1,920 1 2,089 1 (1,876)1 2,114 1 2,494 1 60 1 2,415 1 2,310 1 165 (1,690) 2,310 Oct -25 to Oct -26 to Sept -26 Sep -27 2,019,697 2,619,293 - (90,000) 25,584 2,045,281 2,529,293 1,423,344 1,582,519 (207,678) - (38,126) 38,239 1,177,539 1,620,758 574,000 785,346 7,129 31,379 (21,830) - 92,059 83,961 63,008 70,350 3,474 14,743 756 1,087 (10,276) (78,329) 1,885,858 2,529,293 159,423 (0) 159,423 (0) Exhibit 4 City of Chubbuck Self-funded Medical Plan Proforma Balance Sheet - Aggregate Stop Loss Attachment Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Balance Sheet Assets Cash on hand and on deposit 1,761,761 1,767,449 1,773,079 1,774,209 1,666,395 1,651,017 1,635,623 1,616,138 1,600,475 1,584,647 1,566,299 1,550,202 1,534,104 1,515,756 1,495,659 1,479,561 Certificates of deposit - - - - - - - - - - - - - - - - Short-term investments - - - - - - - - - - - - - - - - Accounts for any other invested assets, if any - - - - - - - - - - - - - - - - Other invested assets - - - - - - - - - - - - - - - - Subtotal - cash and invested assets 1,761,761 1,767,449 1,773,079 1,774,209 1,666,395 1,651,017 1,635,623 1,616,138 1,600,475 1,584,647 1,566,299 1,550,202 1,534,104 1,515,756 1,495,659 1,479,561 Uncollected contributions - - - - - - - - - - - - - - - - Interestandinvestmentincomedueandaccrued - - - - - - - - - - - - - - - - Stop Loss Receivable from carrier - - - - - - - - - - - - - - - - Prepaid Expenses - - - - - - - - - - - - - - - On deposit with TPA - - - - - - - - - - - - - - Other assets Total Assets 1,761,761 1,767,449 1,773,079 1,774,209 1,666,395 1,651,017 1,635,623 1,616,138 1,600,475 1,584,647 1,566,299 1,550,202 1,534,104 1,515,756 1,495,659 1,479,561 Liabilities Claims unpaid - - - - - - - - - - - - - - - - Incurred but not reported (IBNR) liability 139,3721 142,515 145,763 149,010 152,153 155,401 158,544 161,791 165,039 167,972 171,220 174,363 177,611 180,754 184,001 187,249 Unearned contributions - - - - - - - - - - - - - - - - Stop Loss Premiums due but unpaid - - - - - - - - - - - - - - - - Claim administration fees/ TPA fees payable - - - - - - - - - - - - - - - - Taxes due or accrued - - - - - - - - - - - - - - - - Contribution Deficiency Reserve 78,329 - - - - - - - - - - - - Other liabilities 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 178,014 Total Liabilities 317,386 1 320,529 323,777 405,353 330,167 333,415 336,558 339,806 343,053 345,987 349,234 352,377 355,625 358,768 362,015 1 365,263 Surplus Additional Surplus Contribution - - - - - - - - - - - - - - - Unassigned earned/(lost)surplus 1,444,375 1,446,920 1,449,302 1,368,856 1,336,228 1,317,602 1,299,065 1,276,333 1,257,422 1,238,660 1,217,065 1,197,824 1,178,479 1,156,989 1,133,643 1,114,298 Total Surplus 1,444,375 1,446,920 1,449,302 1,368,856 1,336,228 1,317,602 1,299,065 1,276,333 1,257,422 1,238,660 1,217,065 1,197,824 1,178,479 1,156,989 1,133,643 1,114,298 Total Liabilities and Surplus 1,761,761 1,767,449 1,773,079 1,774,209 1,666,395 1,651,017 1,635,623 1,616,138 1,600,475 1,584,647 1,566,299 1,550,202 1,534,104 1,515,756 1,495,659 1,479,561 Exhibit 5 City of Chubbuck Self-funded Medical Plan Proforma Surplus Reconciliation and Surplus Adequacy - Aggregate Stop Loss Attachment Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Reconciliation of Surplus Specific stop loss exposure not applicable to aggregate Estimated total expenses (incl stop loss prem) 708,319 908,535 Estimated contributions 2,019,697 2,619,293 Difference (minimum of SO) 251,847 126,319 110% of difference 277,032 138,950 Total surplus, beginning of period 1,209,433 1,444,375 1,446,920 1,449,302 1,368,856 1,336,228 1,317,602 1,299,065 1,276,333 1,257,422 1,238,660 1,217,065 1,197,824 1,178,479 1,156,989 1,133,643 Total Net gain/ (loss) 234,942 2,545 2,382 (80,447) (32,628) (18,626) (18,537) (22,732) (18,911) (18,762) (21,595) (19,240) (19,345) (21,490) (23,345) (19,345) Total surplus, end of period 1,444,375 1,446,920 1,449,302 1,368,856 1,336,228 1,317,602 1,299,065 1,276,333 1,257,422 1,238,660 1,217,065 1,197,824 1,178,479 1,156,989 1,133,643 1,114,298 Adequacy of Surplus Total surplus, end of period 1,444,375 1,446,920 1,449,302 1,368,856 1,336,228 1,317,602 1,299,065 1,276,333 1,257,422 1,238,660 1,217,065 1,197,824 1,178,479 1,156,989 1,133,643 1,114,298 Minimum required surplus 504,924 504,924 504,924 504,924 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 654,823 Excess (deficient) reserves 939,451 941,996 944,378 863,931 681,405 662,778 644,241 621,510 602,599 583,837 562,242 543,001 523,656 502,166 478,820 459,475 Calculation of Minimum Required Surplus (Plan Yr) Method 1 Average monthly contribution x three 504,924 654,823 Method 2 Aggregate dollar stop -loss attachment point 1,563,225 1,837,076 Excess claims over aggregate stop loss attachment point Specific stop loss exposure not applicable to aggregate Estimated total expenses (incl stop loss prem) 708,319 908,535 Estimated contributions 2,019,697 2,619,293 Difference (minimum of SO) 251,847 126,319 110% of difference 277,032 138,950 Method 1 504,924 10 654,823 Exhibit 6 City of Chubbuck Self-funded Medical Plan Proforma Income Statement - Aggregate Stop Loss Attachment Claims Cost City of Chubbuck Self-funded Medical Plan Jun -26 Jul -26 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 Statement of Income Operating Revenue Contributions from Employer 1,482,272 181,856 177,785 177,785 209,091 211,413 212,324 214,646 216,393 218,716 222,785 222,785 222,785 222,785 222,785 222,785 Contribution Hold Back - - - (90,000) - - - - - - - - - - - Stop Loss Recovered - - - - - - - - - - - - - - - - Other Revenue 25,5 - I - - I - - I - - I - -I - -I - -I - - Total Operating Revenue 1,507,856 181,856 1 177,785 177,785 119,091 211,413 212,324 214,646 216,393 218,716 222,785 222,785 222,785 222,785 222,785 222,785 Operating Expenses Claims Paid 1,069,457 119,789 117,049 117,049 146,616 148,280 148,850 150,515 151,733 153,398 156,281 156,281 156,281 156,281 156,281 156,281 Stop Loss Recoveries (207,678) - - Change in IBNR (47,764) 3,143 3,248 3,248 3,143 3,248 3,143 3,248 3,248 2,933 3,248 3,143 3,248 3,143 3,248 3,248 Claims Incurred 814,015 122,932 120,296 120,296 149,758 151,528 151,993 153,762 154,981 156,331 159,528 159,424 159,528 159,424 159,528 159,528 Stop Loss coverage expense paid - specific 437,128 46,330 45,271 45,271 62,678 63,389 63,633 64,345 64,866 65,577 66,810 66,810 66,810 66,810 66,810 66,810 Stop Loss coverage expense paid -aggregate 2,405 2,362 2,362 2,510 2,532 2,554 2,576 2,598 2,620 2,664 2,664 2,664 2,664 2,664 2,664 Pharmacy Rebates (15,830) (2,000) (2,000) (2,000) - - - - - - - - - - - - Claims administration/TPA fees paid 73,731 6,182 6,073 6,073 6,717 6,776 6,835 6,894 6,953 7,011 7,129 7,129 7,129 7,129 7,129 7,129 Management/Professional Service fees paid 51,808 2,260 2,220 6,720 7,172 4,592 4,612 7,882 4,652 4,672 6,962 4,712 4,712 6,962 8,712 4,712 Taxes paid 167 1,116 1,096 1,096 1,125 1,135 1,145 1,830 1,165 1,175 1,195 1,195 1,195 1,195 1,195 1,195 ACA - PCORI Fee 500 86 85 85 87 88 89 89 90 91 92 92 92 92 92 92 Change in Contribution Deficiency Reserve (88,605) - - 78,329 (78,329) - - - - - - - - - - - Other operating expenses Total Operating Expenses 1,272,914 179,311 175,402 258,231 151,718 230,040 230,861 237,378 235,304 237,477 244,380 242,025 242,130 244,275 246,130 242,130 Operating Gain (Loss) 234,942 2,545 2,382 (80,447) (32,628) (18,626) (18,537) (22,732) (18,911) (18,762) (21,595) (19,240) (19,345) (21,490) (23,345) (19,345) Net Income (Loss) 234,942 2,545 2,382 (80,447) (32,628) (18,626) (18,537) (22,732) (18,911) (18,762) (21,595) (19,240) (19,345) (21,490) (23,345) (19,345) 11 Oct -25 to Oct -26 to Sept -26 Sep -27 2,019,697 2,619,293 - (90,000) 25,584 2,045,281 2,529,293 1,423,344 1,837,076 (207,678) - (38,126) 38,239 1,177,539 1,875,315 574,000 785,346 7,129 31,379 (21,830) - 92,059 83,961 63,008 70,350 3,474 14,743 756 1,087 (10,276) (78,329) 1,885,858 2,783,850 159,423 (254,557) 159,423 (254,557) Exhibit 7 City of Chubbuck Self-funded Medical Plan Projection of 9/30/2027 IBNR Reserve (1) Based on June 30, 2026 medical claims monthly completion factors from IBNR calculation. 12 Aug -26 Sep -26 Oct -26 Nov -26 Dec -26 Jan -27 Feb -27 Mar -27 Apr -27 May -27 Jun -27 Jul -27 Aug -27 Sep -27 9/30/2027 Total 6/30/2026 IBNR Change Monthly Employees Monthly Members Estimated Incurred Claims PMPM Estimated Incurred Claims Estimated Percentage Paid by 9/30/2027 (1) Estimated Portion Paid by 9/30/2027 111 339 363.34 123,172 0.997971 122,922 111 339 363.34 123,172 0.996444 122,734 114 348 363.34 126,442 0.995849 125,917 115 351 363.34 127,532 0.995453 126,952 116 354 363.34 128,622 0.994546 127,921 117 357 363.34 129,712 0.993358 128,851 118 360 363.34 130,802 0.992508 129,822 119 363 363.34 131,892 0.990352 130,620 121 369 363.34 134,072 0.989786 132,703 121 369 363.34 134,072 0.984909 132,049 121 369 363.34 134,072 0.9784 131,176 121 369 363.34 134,072 0.970913 130,173 121 369 363.34 134,072 0.843942 113,149 121 369 363.34 134,072 0.241658 32,400 Estimated IBNR as of 9/30/2027 250 438 525 580 702 861 980 1,272 1,369 2,023 2,896 3,900 20,923 101,673 138,392 102,675 35,717 Margin @ 25% 62 110 131 145 175 215 245 318 342 506 724 975 5,231 25,418 34,598 25,669 8,929 Estimated Administration Cost to Discharge the Reserve at 2 Months of Claims 14,259 14,259 11,028 3,231 Required IBNR Reserve at 9/30/2027 312 548 656 725 877 1,077 1,225 1,591 1,712 2,529 3,620 4,875 26,154 141,350 187,249 139,372 47,877 (1) Based on June 30, 2026 medical claims monthly completion factors from IBNR calculation. 12 Exhibit 8 City of Chubbuck Self-funded Medical Plan Projected Claims Costs - 10/1/2026 to 9/30/2027 Plan: City of Chubbuck Renewal Period: 10/1/2026 to 9/30/2027 Experience Period: 10/1/2025 to 6/30/2026 13 Medical Rx Medical/Rx Enrollment Agg Stop Current Employees 113 113 113 Current Members 345 345 345 Experience Period Employee Months 1,000 1,000 1,000 Experience Period Member Months 3,036 3,036 3,036 Experience Period Average Members per Employee 3.04 3.04 3.04 Claims Single Employee and Spouse 19 Paid Claims 791,418 186,144 977,561 Remove Claims Exceeding Stop Loss of $50K (202,683) - (202,683) IBNR 97,397 5,280 102,676 Incurred Claims 686,131 191,423 877,555 Incurred Claims PMPM 226.00 63.05 289.05 Projected Claims Costs Months of Trend 13.5 13.5 13.5 Annual Trend Rate 9.50% 9.50% 9.50% Compound Applied Trend Factor 1.1075 1.1075 1.1075 Trend Incurred Claims PMPM 250.29 69.83 320.12 Prior Year Member Months 4,011 4,011 4,011 Prior Year Paid Claims 879,714 314,669 1,194,383 Prior Year Incurred Claims PMPM 219.33 78.45 297.78 Prior Year Trended Incurred Claims PMPM 262.98 94.07 357.04 Prior Year Weighting 50% 50% Weighted Trend Incurred Claims PMPM 256.63 81.95 338.58 Laser Exposure 205,000.00 - 205,000.00 Assumed Laser Experience as Percent of Exposure 50.0% 50.0% 50.0% Monthly Laser Cost Per Member 24.76 - 24.76 Weighted Trend Incurred Claims PMPM with Laser 281.39 81.95 363.34 Member to Employee Ratio 3.05 3.05 Projected Claims With Laser 281.39 81.95 363.34 PMPM PEPM 859.12 250.19 1,109.31 97,080 28,272 125,352 Total 13 19/20 Year Agg Stop Specific Loss Number of Specific Stop Estimated Stop Loss Attachment Coverages Employees Loss Premium Claims Cost Premium Point 26 243.83 491.33 107.47 570.36 Single Employee and Spouse 19 520.98 1,049.81 229.63 1,218.68 Employee and Children 10 470.16 947.40 207.23 1,099.80 Family Coverage 58 711.51 1,433.75 313.61 1,664.37 Total 113 62,207.63 125,352.17 27,418.87 145,515.75 PEPM 550.51 1,109.31 242.64 1,287.75 13 Exhibit 9 City of Chubbuck Self-funded Medical Plan Projected Expenses - 10/1/2026 to 9/30/2027 Enrollment Current Employees 113 Current Members 345 Average Number of Members Per Employee 3.05 14 PEPM Annual Administrative Fees (Medical/Rx) Blue Cross of Idaho TPA Fee 56.77 76,980 Behavioral Health 0.90 1,220 Condition Support Services 1.25 1,695 Medical Commission 20.00 27,120 78.92 107,016 Total Pharmacy Rebates - Health Care Reform and Idaho Fees PCORI Fee 0.76 1,035 Idaho Immunization Assessment 9.75 13,221 Idaho Tax 0.12 166 Total 10.64 14,422 Estimated Other Fees and Operating Expenses Actuarial 14,000 Accounting and Audit 21,000 Fidelity Bond 300 Annual Idaho Filing Fee 675 Other 7,500 43,475 Total 32.06 Tota I 121.62 1 1 164,912 Enrollment Current Employees 113 Current Members 345 Average Number of Members Per Employee 3.05 14 Exhibit 10 City of Chubbuck Self-funded Medical Plan Contribution Certification - 10/1/2026 to 9/30/2027 - Based on Aggregate Stop -loss Attachment Point 15 Employee Employee Employee and Monthly Only and Spouse Children Family Total PEPM Estimated Claims Costs Aggregate stop -loss attachment point PEPM 570.36 1,218.68 1,099.80 1,664.37 145,515.75 1,287.75 Potential Cost of Individual Specific Deductibles - - - - - - Estimated Expenses Specific stop -loss premium PEPM 243.83 520.98 470.16 711.51 62,207.63 550.51 Aggregate stop -loss premium PEPM 22.02 22.02 22.02 22.02 21488.26 22.02 Pharmacy Rebates - - - - - - Administrative Fees (Medical/Rx) 78.92 78.92 78.92 78.92 8,917.96 78.92 Health Care Reform and Idaho Fees 10.64 10.64 10.64 10.64 1,201.80 10.64 Management/Professional Fees PEPM 32.06 32.06 32.06 32.06 3,622.92 32.06 Other Amounts to fund additional IBNR margin 28.20 28.20 28.20 28.20 3,186.56 28.20 Estimated Total Costs 986.02 1,911.50 1,741.80 2,547.72 227,140.88 2,010.10 Selected Contribution Rate 207,497.33 1,836.26 910.30 1,747.10 1,593.66 2,322.38 Premium Margin (75.72) (164.40) (148.14) (225.34) (19,643.55) (173.84) As Percent of Contribution Rate -8.3% -9.4% -9.3% -9.7% -9.5% Estimated Employees by Coverage 26 19 10 58 Prior Year Contribution Rate 797.81 1,531.20 1,396.72 2,035.39 181,855.68 1,609.34 Percentage Increase - Selected Premium 14.1% 14.1% 14.1% 14.1% 14.1% 14.1% 15 Exhibit 11 City of Chubbuck Self-funded Medical Plan Contribution Certification - 10/1/2026 to 9/30/2027 - Based on Projected Claims Costs IN Employee Employee Employee and Monthly Only and Spouse Children Family Total PEPM Estimated Claims Costs Estimated Claims Costs PEPM 491.33 1,049.81 947.40 1,433.75 125,352.17 1,109.31 Potential Cost of Individual Specific Deductibles - - - - - - Estimated Expenses Specific stop -loss premium PEPM 243.83 520.98 470.16 711.51 62,207.63 550.51 Aggregate stop -loss premium PEPM 22.02 22.02 22.02 22.02 2,488.26 22.02 Pharmacy Rebates - - - - - - Administrative Fees (Medical/Rx) 78.92 78.92 78.92 78.92 8,917.96 78.92 Health Care Reform and Idaho Fees 10.64 10.64 10.64 10.64 1,201.80 10.64 Management/Professional Fees PEPM 32.06 32.06 32.06 32.06 3,622.92 32.06 Other Amounts to fund additional IBNR margin 28.20 28.20 28.20 28.20 3,186.56 28.20 Estimated Total Costs 906.99 1,742.63 1,589.40 2,317.10 206,977.30 1,831.66 Selected Contribution Rate 207,497.33 1,836.26 910.30 1,747.10 1,593.66 2,322.38 Premium Margin 3.31 4.47 4.26 5.28 520.03 4.60 As Percent of Contribution Rate 0.4% 0.3% 0.3% 0.2% 0.3% Estimated Employees by Coverage 26 19 10 58 IN