Quarterly Financial Report

First Quarter of FY 2021-2022

Health Plan Fund Current Financial Condition

Health Plan Fund accounts for transactions of a self-insured health insurance plan (health, RX, and dental) for City employees, retirees, and dependents.


TheHealth Plan Fund first quarter financial report reflects an ending undesignated fund balance of $3.86 million, which represents approximately 7 months of the Health Plan Fund 2022 budgeted operating expenses ($2.3 million in excess reserve – above the 3-month minimum fund balance reserve policy). The projected ending fund balance is 2 percent or $69K higher than the amended year-end fund balance of $3.8 million.


At the end of the first quarter, revenues exceed expenses by $288K, mainly due to employee medical claims coming in below budget.

Virus cell


Revenues vs Expenses

  • Revenues are projected to come in over budget due to the net effect of City premiums and drug rebates coming in over budget and employee premiums and stop-loss reimbursements coming in under budget.
  • Interest Income is projected come in under budget due to historically low interest rates.

  • Contractual Services are coming in over budget due to claims administration fees.
  • Health Expenses are coming in under budget primarily due to stop loss premium.

  • City's Premiums are coming in under budget due to enrollment.
  • Excess Stop-Loss Reimbursements are coming in over budget based on high-dollar claims.
  • Retiree Premiums are coming in over budget due to participants.
  • Other Financing Sources is coming in under budget. The OPEB Trust transfer was made in February 2022.
  • Miscellaneous is coming in over budget due to a refund for prior fiscal year excess payments.

  • Contractual Services are coming in over budget due to the professional services line item. Annual contracts are encumbered at the beginning of the fiscal year.
  • Other Charges is coming in under budget. The contribution to the OPEB Trust was made in February 2022.
  • Health Expenses are coming in under budget due to retiree claims.

Blue Cross Blue Shield

Budget Amendments

As of the first quarter of FY 2021-22, the Health Fund budget has been amended for the FY 2020-21 carryover encumbrances in the amount of $6K (these encumbrances were not included in this financial report since the funding for the FY 2020-21 encumbrances will come from prior years reserved working capital balance of $6K).


Medical Premiums

Premiums
Financial Status
Reserves