Role of Montana State Fund. Montana State Fund is committed to the health and economic prosperity of Montana through superior service, leadership and.

Role of

Montana State Fund

Montana State Fund is committed to the health and

economic prosperity of Montana through superior

service, leadership and caring individuals, working in an environment of teamwork,

creativity and trust.

VISION

Overview of Montana State Fund

• Role of Montana State Fund

• Structure of Montana State Fund– Relationship with executive and legislative

branches of government

• Role of the Board of Directors

• Profile of Montana State Fund Customers

Montana State Fund Overall Structure

• Team environment focusing on service to our customers

– 265 FTE• Market compensation

• Gainsharing & incentive plans

Montana State Fund Overall Structure

Montana State FundPresident/CEO & Direct Reports

September 1, 2003

Laurence HubbardPresident/CEO

VP - Insurance OperationsSupport

1

Special Assistant to thePresident

1

General Counsel1

Human Resources Leader1

VP - Insurance Operations1

Chief Information Officer1

VP - Corporate Support1

Internal Auditor1

Montana State Fund Guiding Principles

• Integrity and Ethical Conduct

• Customer Focus

• Strong Financial Position

• Quality & Competitive Insurance Service and Products

• Employee Growth and Development

Montana State Fund

•Statutorily created

•Provides a competitive option to purchase mandatory workers’ compensation insurance

•Serves the public purpose of the guaranteed market

Board of Directors

• Governed by 7 member Board– Appointed by the Governor– Vested with full power, authority and

jurisdiction over Montana State Fund– 4 must be policyholders, 3 must be in private,

for-profit businesses, and 1 may be an insurance producer

Board of Directors

• Statutory Responsibilities– Establish rates– Establish appropriate level of surplus– Declare dividends – Approve annual budget– Approve annual Strategic Business Plan– Approve annual financial report– Appointment of the Executive Director

(President/CEO)– Hire independent actuary

Board of Directors

• Constitutional requirements– Open meetings– Public participation– Public documents– Protect individual rights of privacy– Board of Investments manages all Montana

State Fund invested assets

Board of Directors• Ethics

– Execute statutory responsibilities– Code of Ethics– Additional guidelines/duties

• Duty of loyalty• Duty of care

• Board Meeting Schedule– October 10, 2003– December 5, 2003

Insurance Operations

Montana State FundInsurance Operations

Insurance OperationsVice President

1

Team Leader 11

Team Leader 21

Team Leader 31

Team Leader 41

Team Leader 51

MarketDevelopment

Leader2

Executive Assistant1

Team Leader 61

Medical CaseManager (1)

ClaimSpecialist (1)

ClaimAdjuster (7)

Customer Service Specialist (9)Administrative

Support (3)

Medical CaseManager (1)

Claim Specialist (1)Claim Adjuster (8)Customer Service

Specialist (9)Administrative

Support (2)

Medical CaseManager (1)

Underwriter (2)Claim Specialist (1)Claim Adjuster (6)Customer Service

Specialist (4)Administrative

Support (1)

Medical CaseManager (1)

Underwriter (2)Claim Specialist (1)Claim Adjuster (6)Customer Service

Specialist (4)Administrative

Support (1)

Medical CaseManager (1)

PremiumAuditor (1)

Underwriter (2)Safety MngmtConsultant (5)

Claim Specialist (1)Claim Adjuster (10 )

Customer ServiceSpecialist (3)

AdministrativeSupport (1)

Medical CaseManager-Kalispell (1)Premium Auditor (1)

Underwriter (2)Safety MngmtConsultant-

Great Falls (6)Claim Specialist (1)Claim Adjuster (7)Customer Service

Specialist (2)Administrative

Support (1)

MarketDevelopmentTechnician

(1)

Insurance Operations

• Six multi-functional teams providing services to all accounts.– Each team operates independently and is responsible for

targeted service goals.

• Team leaders direct and manage work unit– Safety management– Underwriters– Medical case examiners– Customer Service Specialists– Claim Adjusters– Administrative support

Insurance Operations

• Market Development Leaders– Agent Distribution System

• Underwriting

• Safety management

• Claims management

• Policy maintenance/Customer Service

Operations Support

Montana State FundOperations Support

Operations SupportVice President

1

UnderwritingLeader

1

Safety ServicesLeader

1

Claim ProgramLeader

1

Fraud & Legal SupportServices Leader

1

Old Fund Claims/Med Pay Leader

1

Executive Assistant1

UnderwritingSpecialist

1

SafetyServices

Specialist1

Claim ProjectSpecialist (1)

Claim ContractSpecialist (1)

ClaimTraining

Specialist (1)Quality Assurance

Specialist (1)Quality Assurance

Analyst (2)Medical PayAuditor (2)

Attorneys4

Medical PayTechnician

(13)Claim Adjuster

(7)

Paralegal(2)

Legal AdminSupport (3)

Fraud Auditor(1)

FraudInvestigator

(1)UnderwritingTechnician

1

Operations Support

• Provide support for Operation teams– Ensure consistency and best practices are used

in working with all our customers• Policyholders

• Injured Employees

• Medical care providers

– Legal Services– Fraud investigation

Operations Support

• Quality Assurance programs – Claims– Underwriting– Safety management

• Medical Bill data entry– 216,000 bills processed in FY03

• Oversee all Old Fund claims• Provide internal trend and statistical analysis with

comparison to industry to monitor performance

Corporate Support

Montana State FundCorporate Support

Corporate Support VicePresident

1

Finance TeamLeader

1

Internal Actuary1

Communications &Public Relations Leader

1

Support Services Leader1

Business Planning/Special Projects

Coordinator1

Executive Assistant1

Financial Analyst(1)

Accountant(3)

AccountingSpecialist

(4)

Senior ActuarialAnalyst (1)

Actuarial Analyst(1)

CommunicationsSpecialist

(1)

Document Indexer (5)Document Scanner (5)

Document Processor (3)Document Processor-half time (3)

Facilities SupportSpecialist (4)

Corporate Support

• Financial Services– Prepare all financial statements– Budgeting and cost control

• Actuarial Services– Provides all necessary support and data to keep

management informed of actuarial trends, issues and their implications

– Works with consulting actuary to establish adequate rates, reserves

• Business modeling and planning

Human Resources

• Human resource programs are developed and designed to support MSF vision.

• There is a direct correlation between customer satisfaction and employee satisfaction. – An organization MUST focus on their most valuable

resources to be successful.

• Employee Satisfaction is critical to the success of MSF. – Current structure provides a customer focused team

environment.

Human Resources

• Ensure that MSF is in compliance with all Federal/State regulations and policies

• Performance Planning and Review Process

• Compensation Programs– Merit program– Gainsharing/Incentive program

Information Technology

Montana State FundInformation Technology

Chief InformationOfficer

1

Operations1

eBusinessDevelopment

1

Production Support1

Business Solutions1

Executive Assistant1

Network Engineers (3)Tech Support Analysts (2)

Help Desk Analysts (2)Computer Operator (1)

Business Analyst (1)Senior eBusiness

Systems Analyst (1)eBusiness Systems

Analyst (2)eBusiness Programmer

Analyst (3)Website Engineer (1)

Senior ProductionSystems Analysts (2)

Production ProgrammerAnalysts (5)

Architecture1

Business Analyst (1)QA Analysts (3)

Senior Oracle DatabaseAdministrator (1)Oracle DatabaseAdministrator (1)

Systems Architect (1)Data Security Specialist (1)

IT MethodologyTechnician (1)

Role of Information Technology

1. Enable the business to meet its objectives

2. Provide thought leadership based on technology capabilities to resolve business problems

3. Provide information

•Business Services

Information Technology

1. Help Desk Servicesa. Trainingb. Educationc. Problem Resolutiond. Problem Escalation

2. Business Process Improvements

a. System Requests/ Requirements

b. System Documentation

c. Communicationd. Business Cost

Justification

3. Application Software

a. Maintenance

b. Enhancements

c. Legal/Regulatory Compliance

d. Reports

e. Digital Information Storage

f. Batch Processing Renewals

Payment Processing

Customer Outputs

4. Networka. Connectivity/Communications with all devicesb. E-Mail and Printingc. Remote Connectivityd. Internet/Intranet

5. Hardwarea. Server availability to support applications (40

servers)b. Load balancing – performance standardsc. Secured, controlled computing environment

Information TechnologyOperational Services

6. Disaster Recoverya. Back-up informationb. Off-site storagec. Uninterrupted power supply (UPS)d. 24/7 support and monitoring

7. Quality Processa. Methodologyb. Positive and negative system testingc. Code migration to productiond. Batch processing monitoring

Information TechnologyOperational Services