Health and welfare programs need to adapt in a timely fashion to the continuously changing marketplace. Cheiron’s H-Scan provides an early warning so that steps can be taken to avoid problems.
H-Scan’s capabilities include:
A look at the historical trends of your fund. H-Scan dissects total fund claims analysis into more refined components such as splitting claims between actives and retirees, with benefit coverage further split, between medical, prescriptions drugs, and other expenditures. This enhances our ability to see and understand the underlying trends and to communicate this analysis more effectively to trustees/sponsors.
Our refined analysis enhances our ability to project expected monthly expenditures for the following year, as well as annual cash flows for future years. These projections may be updated every year in H-Scan so either Cheiron or the plan administrator can monitor the actual expenditures versus our projections on a monthly or quarterly basis. This allows potential problems to be identified at an earlier stage, so that corrective measures can be developed early on to mitigate financial difficulties.
H-Scan provides sensitivity analysis for selected items like medical trends, population changes, and claims fluctuations in order to demonstrate the impact of these items. This enhances our clients’ ability to see and understand the important factors affecting their program.
H-Scan is customized and interactive so that the trustees/sponsors can quickly test a variety of plan design options at the same time. This methodology allows for the data to be the most up to date. Most importantly, it allows sensitivity analysis to be completed so that the trustees/sponsors can better understand the impact of their decisions.
H-Scan projects the retiree liability disclosures required by FAS106, SOP01-2, or GASB’s OPEB disclosures. It can also incorporate asset projections, should clients wish to fund these liabilities in advance. By incorporating the capabilities above, we can test the sensitivity of the liabilities and funding to different assumptions or changes in benefits and contributions.