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 funding for the dental insurance program. Cost estimates were based on 2002-2003 fund expenditures trended on the basis of a three-year average of actual City utilization in conjunction with industry trends, as well as input from actuarial services. The contract is for a three-year period renewable annually, subject to annual appropriation; this ordinance represents the final renewal option.
Contract compliance: 31-1440175
FISCAL IMPACT: 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 $7,120,952.00 for Anthem Blue Cross Blue Shield from February 1, 2004 through January 31, 2005. The dental administrative rate is $3.18 per employee per month for February 1, 2004 through January 31, 2005; and $3.49 for PPO rate PEPM. Funding is available in the 2004 budget for this modification. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts.
Title
To authorize the Human Resources Director to modify and extend the contract with Anthem Blue Cross Blue Shield to provide all eligible employees dental insurance coverage from February 1, 2004 through January 31, 2005 and to authorize the expenditure of $7,120,952.00, from the Employee Benefits Insurance Fund or so much thereof as may be necessary to pay the cost of said contract; and to declare an emergency. ($7,120,952.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with Anthem Blue Cross Blue Shield to provide all eligible employees dental insurance from February 1, 2004 through January 31, 2005; and
WHEREAS, it is necessary to authorize the expenditure of $7,120,952.00, or so much thereof as may be necessary to pay contract costs for group dental coverage; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that is necessary to modify and extend the contract to ensure continued employee insurance coverage and to pay the associated contract costs 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, OHIO:
SECTION 1. That the Director of the Department of Human Resources is hereby authorized to modify and extend the contract with Anthem Blue Cross Blue Shield to provide all eligible employees dental insurance coverage from February 1, 2004 through January 31, 2005.
SECTION 2. That the expenditure of $7,120,952.00, or so much thereof as may be necessary for coverage from the Employee Benefits Insurance Fund, Fund 502, Department of Human Resources, is hereby authorized and directed as follows:
SEE ATTACHMENT ORD2741-2003 Dental insurances.xls
SECTION 3. 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.