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.
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 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
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.