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)
