Tuesday, September 04, 2012

Hiding $1 Million in Health Insurance Cash

The Standard Times reported on today's San Angelo City Council meeting:

City council briefly were told of the health insurance fund, which was reduced by about $1.1 million because of changes made to the plan throughout the year and lower costs.
While the health insurance budget for the coming year is over $1.1 million lower than the current year, city leaders never revised their existing budget to reflect such dramatic savings.  How does this move impact the budget council approved today?  It hides nearly $1 million.

Here's what council approved today.  It's based on a budget Council obliterated in November 2011 when it inked an exclusive provider arrangement with Aetna and Community Medical Center:

Here's the picture based on the City's health insurance experience in 2012:

Council approved a budget that hides $980,000 in health insurance cash.  This doesn't include the $343,000 in federal ERRP money.  Adding ERRP funds and the city is sitting on an extra $2.25 million. 

These actions must chap early retiree and employee dependents cast off insurance rolls by this band of Simon Legrees in January 2011.

Update 9-9-12:  While health insurance expenses are down $1.1 million in the current fiscal year, revenue is off roughly $600,000 (based on the city's draft budget numbers).  That turns the above excess into $1.4 million vs nearly $1.9 million.  It's still a sizable pot of money, one the city's not being transparent about.

No comments: