Process Group
Financial Operations Management
Objective
Assure sustainability of the health insurance scheme, and to buffer the scheme from unpredicted liabilities
by maximizing investment income
Input
Excess income from previous years
Contribution from the treasury specifically ear-marked for reserves
Other sources of income which can be channeled to the reserve fund (such as settlement of litigation in favor of the reserve fund, windfall profits, etc.)
Output
Reserve fund should be an amount as a percentage of predicted claims payouts for the next year of a percentage which is consistent with international reserve accounting standards. Normally the fiscal oversight agency of a country (insurance commission, central bank, or the treasury) determines the percentage
Measurable Outcomes
Reserve fund reasonably assures the sustainability of the Fund
Reserve fund grows at a rate commensurate with other comparable reserve funds