Health insurance rate renewals are often unpredictable and unexpected. For a school district, budgeting becomes extremely challenging. Act 1 has added additional pressure for school districts to plan for an unexpected rate increase; with an 8% cap on fund balance it becomes difficult to reserve enough money to protect yourself from an unexpected large rate increase.

Lincoln Benefit Trust, with the assistance of Conrad Siegel Actuaries, calculates an annual funding rate that each Employer pays to the Trust. By pooling our experience and maintaining a reserve, each Employer knows exactly what their healthcare costs are for the year. Any overage or shortfall will be taken into account in future years' annual funding rate. LBT provides Employers with annual budget stability that is enjoyed with an insured arrangement with the lowest possible administrative expense that is achievable through self-insurance.

Lincoln Benefit Trust’s rating structure solves these challenges.