JACKSONVILLE, Fla. – Jacksonville’s City Council is addressing a $23 million deficit in its employee health care fund, according to former City Council President Ron Salem.
“We are self-insured within the city. So we pay our own claims, and we collect premiums to hopefully cover that,” Salem explained.
“The difference between what we are paying out in health care claims and what we’re collecting in premiums from our employees is $23 million this year.”
The health care trust fund, which had $40 million a few years ago, is now in the negative. To combat this, the council approved hiring the Bailey Group, a consulting firm specializing in health care cost management.
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“We had our first meeting with the Bailey Group last week. They are beginning a process of examining claims and will make recommendations to our committee,” Salem said.
“I think they can really help us move this plan from that deficit closer to a break-even standpoint.”
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One immediate focus is the prescription drug plan.
“When the Bailey Group began working with police and fire, they carved out that prescription plan from Florida Blue and set up a separate plan. It’s been a real cost savings,” Salem notes.
Salem also highlighted other potential measures, including increasing deductibles and raising employee premiums, which have not increased in 11 years.
The Bailey Group’s contract runs for a year, with hopes that some recommendations will be implemented in the 2026-27 budget.
To watch the full interview with Salem, along with conversations with Dan McCabe on the challenges air traffic controllers face amid the federal shutdown and staffing shortages, and Michelle McManamon on Operation New Uniform’s veteran career readiness programs, tune in to This Week in Jacksonville.
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