Health and Financial Benefits

Source: PDF pp. 447-449 ↗ · raw: 447 · 448 · 449

Breadcrumb: Service Area Summaries > City Operations > Bureau of Human Resources > Health and Financial Benefits

City of Portland Fiscal Year 2026-27 Proposed Budget City Operations > Bureau of Human Resources > Health and Financial Benefits Health and Financial Benefits Budget Revenues by Fund 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Revenues $153,537,462 $168,760,311 $187,926,371 $219,930,105 General Fund $397,624 $379,059 $453,185 $525,259 Health Insurance $135,488,290 $149,031,116 $165,150,138 $195,146,308 Operating Fund Portland Police Assoc $17,651,547 $19,350,137 $22,323,048 $24,258,538 Health Insurnc Fund Internal Revenues $28,428,541 $24,109,181 $8,510,543 $11,236,233 General Fund $0 $416,921 $475,508 $1,849,052 Health Insurance $20,797,602 $18,390,338 $4,313,639 $6,657,930 Operating Fund Portland Police Assoc $7,630,939 $5,301,922 $3,721,396 $2,729,251 Health Insurnc Fund Grand Total $181,966,003 $192,869,492 $196,436,914 $231,166,338 Program Expenses by Major Object Program expenses only include personnel, internal materials and services, external materials and services, and capital. 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Materials and $155,893,470 $180,318,136 $184,052,722 $198,433,228 Services Internal Materials and $686,599 $644,938 $701,711 $761,154 Services Personnel $3,129,927 $3,476,974 $3,474,392 $5,110,614 Grand Total $159,709,997 $184,440,048 $188,228,825 $204,304,996 Program Description and Goals 447

City of Portland Fiscal Year 2026-27 Proposed Budget A key goal of the Health and Financial Benefits program is to solidify the City of Portland as a choice employer to support employee satisfaction, engagement, and attract talent to enhance the City's core values. Benefits Administration includes healthcare, flexible spending accounts, life and disability coverage, and management of the City's Health Insurance Funds. The Health Insurance Funds collect revenue and pay expenses incurred for all medical, dental, vision, and prescription drug claims; claims administration; stop-loss insurance for the self-funded plans; and premium payments to insured vendors. The Deferred Compensation Plan offers a voluntary retirement savings plan, allowing employees the ability to save money from each paycheck toward retirement. The Leave Program Administration consists of Family Medical Leave Act, Oregon Family Leave Act, City paid parental leave, catastrophic leave, long-term disability, and the ADA disability employment programs. The Health and Financial Benefits will focus on these major initiatives:

• Policy and Plan Design — Fortifying the City of Portland with policies around Health and Financial Benefit programs that will offer transparency and clarity while complying with federal, state, and City laws.
• Program and System Efficiencies — Maximizing use of current and new systems, allowing Human Resources to collect and analyze data to better support decision-making processes within benefit and deferred compensation plan design. Support City's organizational realignment efforts and ensure leave administration becomes fully integrated into Benefits.
• Vendor Contracts — The upcoming year will focus on the competitive process for establishing a new pharmacy benefits manager contract, and ensuring new, fiscally responsible agreements are in place. https://www.portland.gov/bhr/benefit-offerings ↗ Services Annual open enrollment; Qualified life events; Beneficiary designations; Life insurance processing; Vendor eligibility audits; Pay admin and claims invoices; Employee education; Deferred Compensation Program; Leave Program Administration Equity Impacts As part of the Employer Branding Initiative, the Health and Financial Benefit Program works to benefit all employees, specifically those within communities of color and persons living with disabilities. Healthcare vendor partners are encouraged to establish comprehensive information on network providers, ensuring employees can find healthcare providers by gender, race, and other identifiers (e.g., LGBTQ, language). Human Resources vendors work to recruit and contract with a diverse provider network to improve access. Changes to Program State and federal laws directly affect current and future services needed by bureaus and employees. The City of Portland is struggling with balancing continued health plan offerings that support employees while also addressing the increasing health insurance rates. Facing double digit increases, the program has expanded collaboration with the Labor Management Benefits Committee and Portland Police Association to recommend plan design changes to City Council in support of the long-term sustainability of the City's healthcare offerings to employees and their dependents. In response to rising costs, the City implemented plan design changes to Kaiser medical and added four new programs to support the self-funded plan. These required significant communication campaigns and outreach to employees, explaining how the 448

City of Portland Fiscal Year 2026-27 Proposed Budget participant and the City could benefit from engagement. Due to shrinking reserves and continued rising claim costs, the City's self-insured plan (Fund 700) will need to take out an interfund loan of approximately $15 million before the end of FY 2025-26 to be re-paid in FY 2026-27. An additional 7.7% rate increase to City bureaus in FY 2026-27 will go towards the interfund loan repayment. The plan will also need additional funding (~$10 million per year) to rebuild the reserves to a healthy level over the next few years. As the protected leaves available to employees grow in complexity, it is important to continue working towards centralization of FMLA/OFLA leaves which brings all protected leave administration within HR with goals of improving the overall employee experience. 449

Parent: Bureau of Human Resources · PDF: pp. 447-449 ↗