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SFHSS reports better claims experience, $28M pharmacy rebates and record interest income
Summary
CFO Iftikhar Hussain reported pre‑audit fiscal results through June 30: a favorable claims experience, pharmacy rebates about $28 million (roughly 50% higher than last year), and record interest income of about $7.4 million; controls and audit work were described as proceeding well.
Iftikhar Hussain, SFHSS chief financial officer, presented the system’s pre‑audit results for the fiscal year ending June 30, 2024, and told the board that overall experience had improved from last year’s high claims environment.
Hussain said pharmacy rebates were about $28,000,000 — roughly 50 percent higher than the prior year — reflecting both higher spend and higher rebate rates, and that interest income reached approximately $7,400,000 due to current interest‑rate levels. He said the health care sustainability fund increased after prior‑year reimbursements from Blue Shield for funded activities. The audit with MGO has begun and is proceeding without issues to date, he said.
Commissioners asked how the trust funds are invested; Hussain explained SFHSS keeps equity in the city treasury pool rather than running a separate investment portfolio and that the city controller’s office and external auditors apply controls and review disbursements. He also reiterated that the plans use external actuaries (Aon) and that there is robust review of unusual claims and utilization.
Provenance: Financial report segment (SEG 579 — SEG 731).
