Common use of PROCEDURES REGARDING POTENTIAL SHORTFALL IN HEALTH FUND Clause in Contracts

PROCEDURES REGARDING POTENTIAL SHORTFALL IN HEALTH FUND. 1. Quarterly Report: The Plan Consultant/District shall report to the HBC and all participating unions/associations on a quarterly basis regarding the status of the Health Fund. Specifically, such reports shall indicate whether the full accrued or incurred (i.e., this means that expenses are to be recognized in the period they are accrued/incurred regardless of when they are paid) expenditures from all components of the Health Plan are projected to exceed budgeted Health Fund revenues and carryover “reserve fund” balances. This determination shall be made based on claims experience and expenses to date, projected according to objective, industry-based and historical trends to yield an annualized projection of total expenditures.