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Health Service Board approves lower medical contingency reserves, sets active dental reserve to zero
Summary
The San Francisco Health Service Board voted unanimously to reduce contingency-reserve calculations for self‑funded medical plans (to a 95th-percentile method), freeing roughly $4.2 million for 2025 rate relief and increasing future rate‑stabilization carry‑forward; the board also set the active dental PPO contingency reserve to zero on a one‑time basis and asked governance to review removing the dental plan from Policy 2‑10.
The San Francisco Health Service Board on March 14 approved a package of reserve‑policy changes aimed at easing 2025 health‑plan rate pressure.
The board voted unanimously to modify the statistical method used to calculate contingency reserves for self‑funded and flex‑funded medical plans from the more conservative 99th‑percentile approach used earlier this year to a 95th‑percentile method. Aon actuary Mike Clark said applying the 95th‑percentile calculation reduces the medical contingency reserve to about…
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