A new report of Florida Tax Observation It has detailed how the State could face large deficits if it does not increase premiums paid by state employees for health insurance.
According to him reportFlorida offers comprehensive health benefits through the State Group Insurance Program (SGIP), which is available for current and previous state employees, their spouses, children, dependent and retired. State employees who receive health benefits pay a fixed monthly premium.
The report indicates the financial perspectives adopted at the beginning of the fiscal year (FY) 2023-2024 showed an estimated cash balance of $ 574.1 million. Income, which include employee premiums, were estimated at $ 3,085 billion. However, the expenses incurred through claims exceeded an estimated $ 3,336 billion, an operational loss of $ 250.4 million.
Fast progress per fiscal year 2024-2025, with an initial balance of $ 323.7 million, it is estimated that revenues decrease to $ 3,024 billion, while expenses will increase to $ 3,595 billion projected. This would mean a general operational loss of $ 570.8 million, resulting in a loss of $ 247.1 million in fiscal year 2025-2026.
The increases in expenses are established to exceed wildly revenue in the coming years, resulting in an operational loss of $ 770.8 million in fiscal year 2025-2026, before finally increasing to a huge loss of $ 1,523 billion for The fiscal year 2028-2029.
Florida Taxwatch and the Government’s efficiency task force recommend that Florida legislators eliminate state participation in 75% premiums to obtain more in line with what other states and large private employers are paying if they want SGIP to remain solvent . Currently, the State pays a 93.9% share of premiums for state employees.
However, if legislators implement a 75% limit in the State participation for individual and family coverage, the unique coverage premiums of state employees would increase from $ 50 per month to an estimated $ 203 per month, while Family coverage would increase from $ 180 to approximately $ 458 per month per month. That would save Florida approximately $ 446 million annually, according to the report.
“Two things are true. First, in the last two decades, the cost of health insurance available through the SGIP has more than duplicate, ”said the report. “Secondly, the annual premiums paid by the subscriber for individual and family coverage have not changed during this period, letting the State assume additional costs.”
The report says that the current practice of supplementary appropriation by the Legislature will make it difficult to maintain solvency because it will require additional $ 901.6 million per year to keep it afloat. He adds that the legislature faces a projected budget deficit of $ 2.8 billion in fiscal year 2025-2026, a deficit of $ 2.8 billion again in fiscal year 2026-2027 and a monumental budget deficit of $ 6.9 billion per The fiscal year 2027-2028.
Florida Taxwatch points out that the legislature will have to make some difficult decisions and urged state legislators to take quick measures to avoid “serious budget cuts.”
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(Tagstotranslate) Budget deficit (T) Florid
