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PCC to Save $2.1 Million by Self-funding Employee Medical, Pharmacy Benefits

April 8, 2014

 Tucson, AZ – Pima Community College will save an estimated $2.1 million in Fiscal Year 2015 by moving to a self-funded model for employee medical and pharmacy benefits.

The College’s Board of Governors voted unanimously Wednesday, March 26 to approve a self-funded benefits model. The College currently has contracts for medical and pharmacy benefits for employees that include self-funded pharmacy benefits management and fully insured medical benefits.

“More than 1,300 PCC employees and their dependents are eligible to use these benefits,” said Chancellor Lee Lambert. “Self-funding will allow us to look after them and the long-term financial health of the College.”

Next fiscal year, both medical and pharmacy benefits will be structured as self-funded contracts, with medical benefits administered through Blue Cross Blue Shield and pharmacy benefits through Express Scripts, Inc. Medical benefits premiums paid by employees will not change for next fiscal year, and disruption to employees during the transition is expected to be minimal.

Savings will fund other previously identified College priorities that support a student-centered College approach, including enhanced student services. In addition, the College intends to improve its wellness program by:

  • Creating a wellness working group
  • Enhancing existing programs, such as fitness classes and flu shot clinics, with new educational offerings
  • Improving outreach and communication

More information may be found in the Board Report and an accompanying presentation that was made to the Board. Links to both documents are below.

Board Report


C.J. Karamargin
Vice Chancellor for Public Information and Federal Government Relations
(520) 206-4850