(A) General.
(1) Two special non-reverting funds are hereby created to be known as the Lake County Self-insurance Funds for the payment of uninsured claims, settlements and judgments, and for the administration of a program of self-insurance including but not limited to, the payment of legal defense and investigation fees.
(2) The “514 Fund” shall be used for the payment of medical/hospital uninsured claims, settlements, judgments and for the administration of a program of self-insurance including but not limited to the payment of legal defense and investigation fees.
(3) The “541 Fund” shall be used for the payment of property/casualty uninsured claims, settlements, judgments, and for the administration of a program of self-insurance including but not limited to the payment of legal defenses and investigation fees.
(4) The Jail Inmate Medical & Hospital Claims Fund, a non-reverting Fund, Fund No. 414, is hereby established for the purpose of paying invoices for jail inmate medical and hospital claims.
(5) Said fund shall maintain an aggregate minimum level of $8,000,000. Any monies in excess may be transferred for purposes listed in division (B)(2)(a) through (B)(2)(d). A transfer pursuant to this division (A)(1)(5) shall not be considered a loan under I.C. 36-1-8-4.
(Prior Code, § 37.010)
(B) Purpose.
(1) These funds are established to maintain and protect both the Medical/Hospital and Property/Casualty Self-Insurance Programs in the event of an unforeseen shock loss. Any remaining monies at the end of a fiscal year shall not revert to the General Fund and shall remain within each respective fund.
(2) Deposits in Funds 514 and 541 can be utilized for the following purpose only:
(a) To subsidize the respective funds and to protect the respective programs in the event of a shock loss;
(b) To provide an alternative source of General Fund financing in lieu of tax anticipation warrants;
(c) To provide a reserve for the General Fund in case of insufficient appropriation and/or cash in the General Fund to support the aforementioned claim against each respective fund; and
(d) To provide advanced funding for capital projects approved by the Board of Commissioners and the County Council. Funds approved for capital projects shall be appropriated by the County Council in accordance with I.C. Title 36.
(3) In addition to the state approved claim processing procedure any transfer of funds from 514 and 541 must be countersigned by the President of the County Council or the Chairperson of the Health Insurance Oversight Committee.
(Prior Code, § 37.011)
(C) Working accounts.
(1) Three insurance working accounts are hereby created: Property/Casualty Account; Worker’s Compensation Account; and Medical/Hospital.
(2) The working accounts are under the direct jurisdiction of the third party administrator (T.P.A.) having contractual authority in the separate areas and are created to provide a method of payment for day-to-day claims and expenses submitted to and approved by the respective T.P.A.s.
(Prior Code, § 37.012)
(D) Procedure.
(1) There is a $100,000 cap applying to the Property/Casualty and Worker’s Compensation Working Accounts.
(2) Upon presentation of an accounting and bank reconciliation of all claims and expenses paid by the T.P.A. during a month, the Insurance
Oversight Committee shall authorize the reimbursement of the Property/Casualty Working Account to its original cap of $150,000 from Fund 541. The Council’s line item 413421 “Property/Casualty Self Insurance,” 413422 “Property/Casualty Private Insurance,” and 411260 “Workman’s Compensation” shall automatically replenish Fund 541 in an amount equal to all monthly claims and expenses paid by the respective T.P.A.s. Any surplus appropriation existing in line items 413421, 413422, and 411260 shall, before the end of each budget year, be transferred into and become a part of Fund 541.
(3) All monies received by agreement or subrogation from third parties as a result of property/casualty losses suffered in the county shall be deposited in Fund 541.
(4) There is a $3,000,000 cap applying to the Hospital/Medical Working Account.
(5) Upon presentation of an accounting and bank reconciliation of all claims and expenses paid by the Health T.P.A., the Insurance Oversight Committee shall authorize each month the reimbursement of the Hospital/Medical Working Account to its original cap of up to $3,000,000 from Fund 514. The current “Cost Center Contribution for Health Care Ordinance” in force at the time shall automatically replenish Fund 514 for monthly claims and expenses paid by the Health T.P.A., at the terms and amount per pay period stated in the ordinance Any surplus appropriation existing in the County Council “Group Insurance” line item 411240 shall, before the end of each budget year, be transferred into and become a part of Fund 514.
(6) All funds deducted from payroll for employee participation in the Medical/Hospital Plan and any other funds collected for participation in the program shall be made payable to Fund 514.
(7) All refunds due from Property/Casualty or Medical/Hospital Accounts shall be made by the respective T.P.A.s from the respective working accounts.
(8) Notwithstanding division (B)(4) above, Working Accounts, the cap with respect to the Hospital/Medical Working Accounts may be increased beyond $3,000,000 upon the written agreement of the President of the Lake County Council, President of the Lake County Board of Commissioners and Chairperson of the Health Insurance Oversight Committee.
(9) Cost Center Contributions for Workers Compensation Benefits for each full-time and part-time employee is established at the rate of $25 per pay period per employee effective January 1, 2021.
(10) All deductions shall be charged to Line Item 41260/Workers Compensation and deposited into and become part of Fund No. 541.
(11) A list of eligible funds to be charged that may change from time to time is attached as Appendix A, attached at the end of this chapter.
(12) Upon presentation of an accounting and bank reconciliation of all claims and expenses paid by the respective T.P.A., the Insurance Oversight Committee shall authorize payment from the Hospital/Medical Working Account. Notwithstanding the above, a new line item 43120 is established to transfer the balance at the end of the budget year into the Jail Inmate Medical & Hospital Claims Fund, Fund No. 414, a non-reverting fund.
(Prior Code, § 37.013) (Ord. 1031-A, passed 8-1-1991; Ord. 1031A-1, passed 8-13-1991; Ord. 1031A-2, passed 7-14-1992; Ord. 1031A-3, passed 1-9-1996; Ord. 1031A-4, passed 5-14-1996; Ord. 1031A-5, passed 9-14-1999; Ord. 1031A-6, passed 2-29-2000; Ord. 1256A, passed 10-12-2004; Ord. 1031A-7, passed 10-12-2004; Ord. 1031A-8, passed 1-10-2006; Ord. 1031A-9, passed 1-10-2006; Ord. 1031A-10, passed 3-9-2010; Ord. 1031A-11, passed 6-12-2012; Ord. 1031A-12, passed 12-11- 2012; Ord. 1031A-13, passed 2-9-2016; Ord. 1400B, passed 9-13-2016; Ord. 1400B-1, passed 11-15-2016; Ord. 1400B-2, passed 5-14-2019; Ord. 1400B-3, passed 12-10-2019; Ord. 1400B- 3, passed 12-8-2020; Ord. 1400B-5, passed 12- 13-2022)