Employee Health Benefits Overview

Fiscal Year 2022/23

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.


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 2022/23 of $78,702,130 reflects a net increase of $5,137,630 from the Fiscal Year 2021/22 Adopted Budget. Major changes include the following:

  • Increase in health insurance claims payments by $3,654,680
  • Increase in health claims administration by $580,950
  • Increae in health administrative services by $1,985,850


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.

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.