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Committee forwards proposed Health Service System rates for 2024 after committee questioning
Summary
The committee forwarded an ordinance approving Health Service System plan rates and employer contribution levels for 2024, which the HSS projected would raise aggregate system costs 10.38% and city-only costs 10.27%; staff agreed to return with follow-up detail on likely employee-dollar impacts.
The Budget and Finance Committee voted to forward an ordinance approving Health Service System (HSS) plans and contribution rates for calendar year 2024 after an extended presentation and supervisor questioning. Abby Yant, HSS executive director, said the 10.38% aggregate system increase (10.27% for the city-only share) is driven by higher medical costs, increased mental-health and substance-use services demand, utilization increases, and prescription-drug inflation.
Yant identified mitigation actions: settlement proceeds ($14.7 million) and $1.9 million in rate stabilization funds. HSS presented plan‑by‑plan drivers and noted consideration of plan design changes was deferred. Supervisors asked about frequency of plan carrier RFPs and disruption to members when carriers change; staff said plan competitions are typically every three to five years. Members also asked for a fall briefing with a breakdown of the average employee dollar impact by employee group; staff agreed to provide more detailed impact estimates.
After no public commenters, the committee voted 3–0 to forward the ordinance to the full Board with a recommendation.
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