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City cites prescription drug rebates as reason health fund projection improved
Summary
Finance staff said the health fund's projected use of fund balance fell from $14.6 million to about $9 million after prescription drug rebates and an expected additional rebate in September; staff said retiree fund is stable while general employee fund remains under pressure until plan changes take effect.
Christy Lemon told the committee the health fund outlook has improved after receiving prescription drug rebates and expects one more rebate payment in September. "We did receive some prescription drug rebates, and we're projecting 1 more rebate payment in September," Lemon said, noting the projection shifted from an expected $14,600,000 use of fund balance to about $9,000,000.
Councilwoman Peoples asked whether recent news that the city would "no longer gonna fund ... prescription pills" would affect the fund; Lemon replied that the retiree fund is healthy but the general employee fund carries the deficit and any employee‑plan changes have a 90‑day waiting period before cost impacts appear.
