Explanation
BACKGROUND:
Funding for medical and prescription drug (Rx) insurance is necessary to insure continuation of the city’s medical and Rx insurance program. Included within the medical program are COBRA and tobacco cessation services. Insurance programs must be maintained in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with United Healthcare Insurance Company and to provide funding from February 1, 2022 through January 31, 2023 for this program. This ordinance represents year three of the three-year contract. The contract also provides for two (2) one (1) year renewals.
Cost estimates for 2022 are based on 2020 and 2021 benefit fund expenditures, using an average of actual city utilization, expected changes due to union negotiations, as well as input from the City's employee benefits consultant. The Human Resources Department requests to establish a contract with United Healthcare Insurance Company and to provide for funding February 1, 2022 through January 31, 2023.
Outside of the United Healthcare Insurance company contract, but included in the medical program appropriations, are the annual PCORI fees appropriations at $65,000.
The maximum obligation liability for medical, Rx, COBRA, tobacco cessation services, and PCORI fees from February 1, 2022 through January 31, 2023 is $208,127,000.00.
Emergency action is requested to ensure the programs for city employees and eligible terminated participants are able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2022 Employee Benefits Fund for this contract and PCORI fees. This ordinance is contingent on the passage of the 2022 insurance appropriation ordinance 0014-2022.
Title
To authorize the Human Resources Director to enter into a contract with United Healthcare Insurance Company and to provide all eligible employees medical, Rx and tobacco cessation programs a...
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