Explanation
To maintain unemployment benefit payments in accordance with Federal Law, additional appropriation is necessary for the medical insurance program. To determine the amount necessary for the appropriation, current utilization and anticipated claims were analyzed. Additional appropriation is needed due to an increased number of medical claims.
In January 2010, $72,081,221.00 was appropriated to United Healthcare; however, to date claim costs have exceeded these appropriations thereby necessitating additional appropriation authority to meet anticipated annual expenses. Total projected expense is $77,081,221.00 million, year to date $72,081,221.00 has been appropriated, and therefore an additional $5,000,000.00 is needed. The additional appropriation does not require additional cash funding. Cash funding is available in the total Employee Benefits Fund from all insurance subfunds.
FISCAL IMPACT: No fiscal impact; funding is available to increase the maximum obligation liability, and to authorize the expenditure of $5,000,000.00 for United Healthcare through January 31, 2011, and to provide additional appropriations for medical insurance. Funding is available for this modification in the Employee Benefits Fund. This ordinance is an emergency measure to ensure unemployment benefit payments in accordance with Federal Law.
Title
To authorize the City Auditor to appropriate $5,000,000.00 from within the unappropriated balance of the Employee Benefits Fund, to authorize the expenditure of $5,000,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the medical insurance claims to United Healthcare; and to declare an emergency. ($5,000,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify the existing contract with United Healthcare to ensure medical insurance claims through January 31, 2011; and
WHEREAS, it is necessary to authorize the expenditure of $5,000,000.00; or so much thereof as may be necessary to pay the medical insurance claims to United Healthcare; and
WHEREAS, it is necessary to authorize the appropriation of $5,000,000.00 ; or so much thereof as may be necessary to pay the medical insurance claims 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 $5,000,000.00 to the Employee Benefits Fund, from the 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 modify the existing contract with United Healthcare and to pay an additional $5,000,000.00 in medical insurance claims to United Healthcare (EA007836) through January 31, 2011.
SECTION 3. That the expenditure and appropriation of $5,000,000.00, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Subfund 208, Department of Human Resources 46-01, OL1 -03, OL3-3363, OCA 460004, Amount $5,000,000.00.
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.