Explanation
BACKGROUND: Additional funding of the vision insurance program is necessary to insure continuation of the vision insurance program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with EyeMed Vision Care, LLC and its wholly owned subsidiary, First American Administrators, Inc. and to provide funding from February 1, 2023 through January 31, 2024 for this program. The program services approximately 24,000 active benefit enrolled employees, their dependents and COBRA participants.
The contract term is 3 years, with two (2) one (1) year renewals. This represents year two of the three year contract.
The total obligation of this contract is $1,221,000.00. The breakdown of expense is $21,000.00 for administrative fees and $1,200,000.00 for claims.
Cost estimates for 2023 are based on 2021-2022 benefit fund expenditures using a two year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and from the City's employee benefits consultant.
Emergency action is requested to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2023 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2023 insurance appropriation ordinance 3284-2022.
Title
To authorize the Human Resources Director to enter into a contract with EyeMed Vision Care, LLC and its wholly owned subsidiary, First American Administrators, Inc. to provide all eligible employees vision plan administration from February 1, 2023 through January 31, 2024; to authorize the expenditure of $1,221,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary, to pay the costs of said contract; and to declare an emergency. ($1,221,000.00)
Body
WHEREAS, it is in the best interest of...
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