Summary
The Health and Medical Benefits: Burning a Hole in the Budget report analyzes Philadelphia’s escalating health care costs, which increased by 60% over five years while the number of city employees declined. The report compares Philadelphia’s costs to those of other major cities and finds that the City’s per-employee health benefit expenses remain among the highest. It identifies strategies implemented by other jurisdictions to curb rising costs, such as joint labor-management control, wellness incentives, and better vendor oversight. The report recommends that Philadelphia take immediate steps to control expenditures by enhancing cost-sharing measures, improving plan design, and implementing preventive health programs to reduce long-term liabilities.