Local Municipalities

Local municipalities are facing some of the most challenging times in history. From 2010 to 2012, the municipal sector is expecting a budget shortfall of $56 billion to $83 billion. Worse, we know that revenue from taxes and state sources is declining due to depressed property values and the economic recession.1

The financial outlook for municipalities is uncertain. Let UnitedHealthcare, with our experience, stability and market strength, help to meet your needs. We listen closely and bring customizable solutions that may fit your challenges. We bring the power of information to help you and your employees make more informed decisions, which may improve their health and well-being.

Let's have a conversation

It all starts with a conversation. A conversation about your needs and challenges can help us propose tailored solutions.

There are a variety of ways UnitedHealthcare can help. We offer flexible and customized plans and services, with a level of personalization. After all, know one knows your employee population better than you. So let's build a benefits program together.

Some solutions to consider include:

The Statistics are Daunting

The data clearly reflects how difficult times have been the past few years. And unfortunately, it also predicts uncertain times ahead with revenue shortfalls and strained budgets expected in 2010 - 2012. Here are the facts:

  • Employee wages, the health of the local economy and employee health benefit costs have the greatest negative impact on city finances.
  • In the past few years, the government has spent more than $45 billion on health care just for municipalities.2
  • 91% of cities made budget cuts in 2009 and 82% predict further cuts in 2010.
  • Most common actions were to institute hiring freezes/layoffs and delay/cancel capital projects.
  • Despite mention as a top budget factor, only a quarter of cities modified employee health benefits in 2009.
  • City expenditure growth outpaced revenue growth for the past three years (2007-2009).
  • 88% of city finance officers report being less able to meet fiscal needs in 2009 than previous years.
  • Unfunded retiree benefit costs is also significant liability area as most local governments offer retiree benefits and are subject to GASB 45 reporting requirements.

The solution? Let's start by working together  both the health plan and the municipality to try to reverse these daunting statistics. Together we can find innovative, customizable solutions that may help control government spending while keeping your employees healthy.

1 .2007 Census of Government Finance, National league of cities (NLC) survey of city Finance officers

2. Source: Census Bureau's Employment and Financial data, 2006-200. Estimated health spend is based on participation rates of full and part-time workers and average premium of $9,500-$10,000 per employee.

For a complete description of the UnitedHealth Premium® Designation program, including details on the methodology used, geographic availability, program limitations and medical specialties participating, please see myuhc.com®.

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