Explanation
BACKGROUND: To maintain the insurance programs in accordance with the negotiated labor contracts, it is necessary to modify and extend the existing contract with Anthem Blue Cross Blue Shield, and to provide additional appropriation for the continuation of the dental insurance program. Additional appropriation is needed due to higher than projected dental claims.
In February 2003, $5.49 million was appropriated to Anthem Blue Cross Blue Shield; however, to date claim costs have exceeded $5.0 million thereby necessitating additional appropriation to meet anticipated annual expenses. Due to total projected claims and administrative expenses of $6.7 million for year 2003 an additional $1.3 million appropriation is needed. The additional appropriation and modification of contract does not require additional cash funding. Cash funding is available in the total Employee Benefits Fund for all insurance subfunds.
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend the existing contract with Anthem Blue Cross Blue Shield, to increase the maximum obligation liability, and to authorize the expenditure of $1.3 million for Anthem Blue Cross Blue Shield through January 31, 2004 and to provide additional appropriations for dental claims expenses. Funding is available for this modification in the Employee Benefits Fund. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
Contract compliance: 31-1440175
Title
To authorize the City Auditor to appropriate $1.3 million from within unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Anthem Blue Cross Blue Shield to provide all employees with dental insurance coverage through January 31, 2004 and to authorize the expenditure of $1.3 million from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contact; and to declare an emergency. ($1,300,000)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract to provide all eligible employees dental insurance through January 31, 2004; and
WHEREAS, it is necessary to authorize the expenditure of $1.3 million; or so much thereof as may be necessary to pay contract costs for group dental coverage; and
WHEREAS, it is necessary to authorize the appropriation of $1.3 million; or so much thereof as may be necessary to pay contract costs for dental coverage from the unappropriated balance of the Employee Benefits Fund; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary for aforementioned purpose for the preservation of the public health, peace, property, safety, and welfare; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the City Auditor is hereby authorized and directed to appropriate the sum of $1.3 million to the Employee Benefits Fund, from unappropriated funds in the Employee Benefits Fund and all monies estimated to come into said fund from any and all sources, and unappropriated for any other purpose.
SECTION 2. That the Human Resources Director is hereby authorized to modify and extend the contract with Anthem Blue Cross Blue Shield (EA017189), to provide all eligible employees dental insurance coverage through January 31, 2004.
SECTION 3. That the expenditure and appropriation of $1.3 million, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Subfund 207, Division 46-01, OL1 03, OL3 3363, OCA 461013, amount $1,300,000, is hereby authorized and directed.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage, if the Mayor neither approves nor vetoes the same.