Explanation
BACKGROUND: To maintain the employee insurance programs in accordance with the negotiated labor contracts, appropriation is necessary for the continuation of all employee benefits programs. Cost estimates for 2023 claims and administrative fees are based on 2021-2022 benefits fund expenditures using a two-year average of actual city utilization and expected changes due to union negotiations. Input from insurance carriers, in conjunction with industry trends, and actuarial services are also key factors. The revenue for the 2023 benefits fund includes the 2023 department budgeted amounts, employee premium contributions, COBRA premium deposits, and prescription drug rebates.
Emergency action is requested to ensure the health insurance programs for city employees are able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Claims costs and administrative fees for 2023 are estimated at $231,432,000.00. A total of $231,432,000.00 is projected to be required for 2023. These funds are needed to cover the costs of the City employee insurances and wellness programs. This ordinance is contingent on the passage of the 2023 Operating Budget (ordinances 2936-2022, 2937-2022, and 2938-2022).
Appropriation is being made to the following programs:
Medical Plan* $216,327,000.00
Ohio AFSCME Cares Plan 25,000.00
Dental Plan 8,271,000.00
Vision Plan 1,221,000.00
Life Plan 1,400,000.00
Disability Plan 4,000,000.00
Employee Fitness Center 95,000.00
Healthcare screenings and events 93,000.00
TOTAL $231,432,000.00
*Includes medical, drug, COBRA, tobacco cessation and PCORI fees.
Title
To make appropriations for the 12 months ending January 31, 2024 for the fund...
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