Program B: Claims Losses and Related Payments

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Program B: Claims Losses and Related Payments

Program Authorization: R.S. 39:1528-1543

PROGRAM DESCRIPTION

The mission of the Claims Losses and Related Payments Program in the Office of Risk Management is to minimize losses and achieve financial stability.

The goal of the Claims Losses and Related Program in the Office of Risk Management is to budget a sufficient amount of funds to pay all claims losses, adjusting expenses and excess insurance costs.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with fees and Self-generated Revenues. Fees and Self-generated Revenues are derived from premiums billed for insurance provided by this Office and from interest earnings from the Self-insurance Fund. State and quasi-state entities obtain insurance through the Office of Risk Management.

ANALYSIS OF RECOMMENDATION

GENERAL FUND	TOTAL	T.O.	DESCRIPTION

$0	$146,592,258	0	ACT 44 FISCAL YEAR 1998-1999

			BA-7 TRANSACTIONS:
$0	$0	0	None

$0	$146,592,258	0	EXISTING OPERATING BUDGET – November 20, 1998

$0	($24,804,089	0	Adjustment due to reduction by the 1998 - 1999 State Legislature (Section 8.C of the Preamble)
$0	($14,733,477)	0	Reduction due to recalculation of premiums to be billed to state agencies

$0	$107,054,692	0	TOTAL RECOMMENDED

$0	($39,537,566)	0	DIFFERENCE (TOTAL RECOMMENDATION AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 73% of the existing operating budget. It represents 44.1% of the total request ($242,547,116) for this program. At the recommended levels, this program has been provided funding to meet anticipated claims payments and other obligations during Fiscal Year 1999-2000. Adjustments in this program include: Decreased Funding for All Lines of Coverage via Preamble Adjustment -$24,804,089; Decreased Funding for All Lines of Coverage -$11,632,538; and a Decrease to reflect expenditure adjustments in the agency, exclusive of premiums -$3,100,939.

PROFESSIONAL SERVICES

$348,334		Medical Review Audits to provide (Medical Utilization Review Program for employees eligible for Workers' Compensation); Pre-certifications and Examinations of Workers' Compensation Claims and Medical Cost Management

$166,667		Elevator Inspections (Statewide)

$515,001		TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$106,539,691		Claims payments for Medical Malpractice, Road Hazard, Comprehensive General Liability, Personal injury, Auto Liability, Auto Physical Damage, Property Bonds, Crime, Wet Marine, Aviation, and Boiler and Machinery , Worker's Compensation coverage for State entities'

$106,539,691		TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.

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