Saturday, September 22, 2012

City Has Nearly $2 Million Health Insurance Kitty

City staff finally came clean on San Angelo's banner health insurance year, well almost.  An astericks showed the data to be year to date and not incorporating federal early retiree reinsurance program (ERRP funds) .Adding $343,000 in ERRP funds and nearly $60,000 to round out the year, the City of San Angelo has nearly $2 million in its health insurance kitty.

For those interested in the city's health experience, July budget numbers showed they spent 83.9% of premiums on medical care.  That's below the "medical loss ratio" rule required by health reform.

For large businesses purchasing coverage, the standard is 85 percent. If insurers fail to meet the requirement, they must rebate policyholders the difference.
As a self insured entity the City isn't bound by the rebate requirement.  City Council seemed excited about the prospect of moving "excess" health insurance funds to other uses.  There was no mention of the need to set funds aside to meet GASB requirements for retirement and retiree health care in 2014.

It's been my experience that City leaders and Council repeatedly offer the general public minimal information on health coverage or provide it late in the decision making game.   I'll give the city higher marks for responding to direct questions, but on some issues it's a challenge

As for city leaders disdain for public health, I'll explore that in an upcoming post

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