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.
The following programs are included in this department:
Staffing By Program
*Full Time Equivalent Employee (FTE)
Budget By Program
Budget By Expense Category
Budget By Funding Source
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
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.
The Self-Insured Health Benefits Trust has been operating without any major issues for the past two years.
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.