The State Health Plan for Teachers and State Employees should finish the 2010-11 budget year with cash in the bank ? but there won’t be much wiggle room.
The Health Plan’s Mona Moon told state lawmakers this afternoon that current projections call for a cash balance of $115.7 million at the end of June, roughly $76.5 million less than budgeted.
That $115.7 million might sound like a decent cushion, but Moon says that’s roughly two weeks worth of funds. Health Plan officials would prefer to have about a month’s worth of money on hand.
Moon says higher-than-expected claims payments account for the discrepancy, despite some positive signs in administrative costs.
For those still smarting from the 8.9 percent premium increase that took effect in July, there’s some bad news. Health plan officials will ask early next year for two straight years of premium increases projected now at 10.7 percent a year. That number could climb if legislators bump back the effective date of the premium increase.
