Employee Health Benefits Overview

Fiscal Year 2021/22

Mission Statement

To provide health related benefits to City employees, City retirees, and qualified family members through various benefit plans administered by a combination of third-party administrators, and contractors. Medical claims are self-funded and administered through a third-party administrator; while other benefits will be funded through the purchase of fully insured contracts. The self-funded, medical program are overseen by a Board of Trustees.

Programs

The following programs are included in this department:

Staffing By Program


*Full Time Equivalent Employee (FTE)

Budget By Program



Department Expenses

Budget By Expense Category

Budget By Funding Source

Significant Changes

The adopted budget for Fiscal Year 2021/22 of $73,564,500 reflects a net decrease of $3,785,630 from the Fiscal Year 2020/21 Adopted Budget. Major changes include the following:


  • Decrease in health insurance claims payments by $2,486,710
  • Decrease in health claims administration by $973,200
  • Decrease in health administrative services by $478,860

Trends

The City of Tucson adopted a self-funded mechanism in Fiscal Year 2019/20 to provide health insurance and over the long term it should result in savings compared to purchasing a fully insured product from a major carrier. However, even with the savings, the overall trend of health care is increasing significantly, and the City anticipates the total cost to increase over time.

Accomplishments

The Self-Insured Health Benefits Trust has been operating without any major issues for the past two years.

Future Objectives

The City will continue to strategically pursue long-term approaches to alleviate the rising cost of health care insurance to the City while still providing comprehensive health care for employees, retirees, and their qualified family members.