Elected Officials

Departments

Risk Management

County Administration Building
300 Monroe Avenue NW
Grand Rapids, MI 49503
Phone: (616) 632-7670
Fax: (616) 632-7665

Mission Statement

To administer the risk management activities including the procurement of insurance, claim payments, safety and loss prevention in the best interest of the County.

Overview

The Risk Management office identifies, evaluates, and attempts to reduce risk exposures for County departments and facilities. The Risk Management office administers the self-funded and commercial insurance programs, which include property, liability, auto, and workers’ compensation. In addition, the office administers the safety compliance program, manages claims, and initiates loss prevention.

In addition to its administration and reporting duties, the Risk Management budget also includes benefit costs, including retirement personnel group health insurance, prescription benefits, the dental plan, long term disability, and unemployment benefits.

Goals

  • To mitigate risk exposure
  • To reduce the frequency and severity of claims
  • To reduce lost workdays due to occupational illness or injury

2009 Adopted Uses: $23,898,181

2009 Adopted Revenues: $23,451,561

Selected Performance Measures

Performance Measure
2006
Actual
2007
Actual
2008
Actual
2009
Expected
Average cost of workers comp indemnity claim
$2,836
$2,733
$3,505
$2,900
Average cost of workers comp medical claim
$929
$1,029
$1,347
$881
Lost workdays per workers comp indemnity claim
30.37
27.26
56.72
30.00
Average cost of auto physical damage claim
$1,683
$1,089
$1,161
$1,133
Average cost of liability claim
$2,275
$247
$1,892
$833
Claims processed per employee (2 FTE)
129.5
148.5
143.5
136.5

Department History of Uses

Uses
2006
Actual
2007
Actual
2008
Adopted
2009
Adopted
Personnel
$444,328
$319,075
$286,789
$344,715
Commodities
1,207
763
1,485
965
Contractual Services
19,868,259
20,768,997
24,384,665
23,472,136
Other Expense
90,234
74,645
77,361
80,365
Total Uses
$20,404,028
$21,163,480
$24,750,300
$23,898,181
 
Personnel FTE
2
2
2
2

Significant Budget Issues

The third party administrator account includes expenses incurred under a self-insured health insurance plan. The fiscal year 2008 adopted budget forecasted expenditures slightly in excess of $20.5 million. Actual expenditures including medical prescription stop loss insurance premium and third party administrator fees totaled $18.9 million. The fiscal year 2009 adopted budget is based on a 5.9 % increase over fiscal year 2008 actual expenses. The forecasted increase is considered moderate in nature. A conclusion of recent union contract negotiations resulted in a reduction of employee co-pay on health claims and increased co-pay prescriptions. In addition, the County entered into a new third party administrator contract which provides for high level of hospitalization discounts.

History of Uses (in millions)