Explanation
BACKGROUND:
Funding for runout of medical and prescription drug (Rx) claims and administrative fees is necessary to complete the contract requirements of the city’s medical and Rx insurance program under United HealthCare Services, Inc. Included within the medical program are COBRA services. The Department of Human Resources requests to contract with United HealthCare Services, Inc. and to provide funding from February 1, 2026 through January 31, 2027 for this program. Funding is requested for runout claims and administrative fees continuing through January 31, 2027. This contract was initiated on February 1, 2020.
In April of 2025, the Department of Human Resources, with assistance from Marsh & McLennan Agency, the City’s employee benefits and wellness consultant, went out to bid for a medical and pharmacy third party administrator via RFP030095.
The RFP team interviewed 3 medical program finalists. After careful consideration and evaluation, Community Insurance Company dba Anthem Blue Cross and Blue Shield was selected as being the lowest and best bid for medical third-party administrator services for the City. Due to this vendor change, runout claims and administrative fees need to be paid under existing contractual obligations.
The maximum obligation liability for medical, Rx, and COBRA services for run out claims and administration fees under United HealthCare Services, Inc. is $44,235,000.00.
This ordinance is contingent on the passage of the 2026 insurance appropriation ordinance 3195-2025.
Emergency action is requested to ensure the programs for city employees and eligible terminated participants are able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2026 Employee Benefits Fund for this contract.
Title
To authorize the Director of the Department of Human Resources to enter into a contract with United HealthCare Services, Inc. and to provide all runout claims and administrative fees for medical, Rx and COBRA programs from February 1, 2026 through January 31, 2027; to authorize the expenditure of $44,235,000.00 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; to waive the competitive bidding provisions of Columbus City Codes; and to declare an emergency. ($44,235,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with United HealthCare Services, Inc. to provide all runout claims and administrative fees for medical, Rx and COBRA programs from February 1, 2026 through January 31, 2027; and
WHEREAS, it is necessary to authorize the expenditure of up to $44,235,000.00, or so much thereof as may be necessary to pay contract costs for runout claims and administrative fees for medical, Rx and COBRA programs; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Human Resources in that it is immediately necessary to authorize the Director of Human Resources to enter into contract and expend funds to ensure the runout claims and administrative fees for medical, Rx and COBRA programs are able to commence as soon as contractually possible, thereby maintaining continuity of service; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Human Resources is hereby authorized to enter into contract with United HealthCare Services, Inc. to provide all runout claims and administrative fees for medical, Rx and COBRA programs from February 1, 2026 through January 31, 2027.
SECTION 2. That the expenditure of $44,235,000.00 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550206 | Program: RM005 | Amount: $1,200,000.00 (Medical Admin fees)
Department: 4602 | Fund: 5502 | Subfund: 550206 | Program: RM006 | Amount: $41,000,000.00 (Medical Claims)
Department: 4602 | Fund: 5502 | Subfund: 550207 | Program: RM005 | Amount: $25,000.00 (Rx Admin fees)
Department: 4602 | Fund: 5502 | Subfund: 550207 | Program: RM006 | Amount: $2,000,000.00 (Rx Claims)
Department: 4602 | Fund: 5502 | Subfund: 550206 | Program: RM003 | Amount: $10,000.00 (COBRA fees)
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That City Council hereby finds it to be in the best interests of the City of Columbus to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes and does hereby waive the same.
SECTION 5. 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.