Self Insurance Health Care Benefit

About the Program

Category: Personnel Management, Employment and Training (Best in Category)

Year: 2017

After multiple years of double-digit annual cost increases to employee health premiums and continued low performance of the Preferred Provider Organization (PPO) plan, County leadership confronted the problem to help save taxpayer money and provide more cost-effective care for approximately 6,200 benefits eligible employees. Pima County has now adopted a self-insurance health care benefit model that has had the cumulative effect of saving more than $45 million. This was accomplished by eliminating the PPO plan in fiscal year 2016 and moving all employees to the High Deductible Health Plan (HDHP), and for those who qualify, a Health Savings Account (HSA). Collectively the County and employee contributions, of which more than 80 percent of our enrolled workforce participates, has grown the HSA fund to more than $17 million. The County’s Health Benefits Insurance Trust Fund balance also has grown as a result of the reforms, topping $21 million today. Finally, to further the goal of reduced health care costs, the County continued to provide a robust employee health and wellness program to proactively help employees improve their overall health and educate them on how to become smarter consumers of healthcare.