State Health Plan member updates

A message from Jack Walker, Executive Administrator

As I review the Plan’s financial performance with you, I want to reassure you that your health care coverage is in full effect and all claims will continue to be paid.

The Plan remains committed to restoring cash reserves and strengthening financial health. Throughout this process, transparency for our members and taxpayers is an important value. Closely monitoring our “recasted,” or revised budget, against actual expenditures is a key part of this process.

Here are some highlights from the State Health Plan’s September 2008 financial report:

  • For the 1st Quarter of Fiscal Year 2008-2009, our year-to-date actual plan loss is $89.8 million, vs. the recasted budget projection of $115.4 million loss and the original budget projection of a net gain of $44.1 million.
  • The ending cash balance for September was $49.9 million.
  • Please keep in mind, as previously reported: For Fiscal Year 2008-2009, the Plan confirms a projected loss between $264 and $280 million.  (A loss of $62 million was originally projected.)

Also, a Performance Audit of the State Health Plan was recently completed by the State Auditor, and can be reviewed here.  This audit covers Plan oversight from July 1, 2007, through July 31, 2008.