Board approves health plan reserve amounts amid pandemic billing concerns

The San Francisco City Board has taken a significant step towards enhancing the city’s health plan funding by approving the Incurred But Not Reported (IBNR) and contingency reserve amounts for both self-funded and flex-funded health plans during a recent meeting. This decision, which was moved and seconded, aims to ensure that the city can effectively manage its health care costs and maintain financial stability in the face of ongoing challenges.

Commissioner Follosby led the discussion, emphasizing the importance of these reserves in light of the pandemic's impact on health care billing processes. A board member raised concerns about potential delays in billing due to staffing issues in health care facilities, which could affect the timely reporting of claims. However, it was noted that as of June 30, 2021, no significant patterns of delay had been observed, although the situation would continue to be monitored into 2022.

The board also opened the floor for public comments, allowing community members to voice their opinions and ask questions regarding the agenda items. Although no public comments were received during this session, the opportunity for community engagement remains a vital part of the board's decision-making process.

This approval is expected to bolster the city’s health plan framework, providing a safety net for unforeseen health care costs and ensuring that residents continue to receive necessary medical services without interruption. As the city moves forward, the board will keep a close watch on the evolving health care landscape to adapt its strategies accordingly.