City of Columbus - File #: 0021-2011

• File #: 0021-2011
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 1/5/2011
• In control: Administration Committee
• On agenda: 1/24/2011
• Final action: 1/24/2011
• Title: To authorize the Human Resources Director to modify and extend the contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance coverage from February 1, 2011 through January 31, 2012 and to authorize the expenditure of $27,057,000.00 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. ($27,057,000.00)

Date	Ver.	Action By	Action	Result
1/26/2011	1	CITY CLERK	Attest
1/25/2011	1	MAYOR	Signed
1/24/2011	1	Columbus City Council	Approved	Pass
1/24/2011	1	COUNCIL PRESIDENT	Signed
1/14/2011	1	CITY AUDITOR	Contingent
1/14/2011	1	CITY AUDITOR	Reviewed and Approved
1/14/2011	1	HR Drafter	Sent for Approval
1/14/2011	1	CITY ATTORNEY	Reviewed and Approved
1/14/2011	1	HR Drafter	Sent to Clerk's Office for Council
1/13/2011	1	EBOCO Reviewer	Reviewed and Approved
1/13/2011	1	ODI DIRECTOR	Reviewed and Approved
1/13/2011	1	HR Drafter	Sent for Approval
1/11/2011	1	FINANCE DIRECTOR	Reviewed and Approved
1/11/2011	1	HR Drafter	Sent for Approval
1/10/2011	1	Finance Reviewer	Reviewed and Approved
1/9/2011	1	HR Drafter	Sent for Approval
1/7/2011	1	HR DIRECTOR	Reviewed and Approved
1/5/2011	1	HR Drafter	Sent for Approval

Explanation

To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the prescription drug insurance program is necessary to insure continuation of the prescription drug insurance program.  Cost estimates were based on 2009-10 trust fund expenditures using a three 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. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the third year.  

Contract compliance number is 31-1142815

FISCAL IMPACT:  To enter into contract with United HealthCare Insurance Company to establish the maximum obligation liability of $27,057,000.00 for the prescription drug plan administration services from February 1, 2011 through January 31, 2012. Funding is available in the 2011 budget for this contract.

Title

To authorize the Human Resources Director to modify and extend the contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance coverage from February 1, 2011 through January 31, 2012 and to authorize the expenditure of $27,057,000.00 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.  ($27,057,000.00)

Body

WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance from February 1, 2011 through January 31, 2012; and

WHEREAS, United HealthCare Insurance Company has indicated its intention to use an MBE and report the dollar amount quarterly.

WHEREAS, it is necessary to authorize the expenditure of up to $27,057,000.00, or so much thereof as may be necessary to pay contract costs for prescription drug insurance services;

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 Human Resources Director is hereby authorized to modify and extend the contract with United HealthCare Insurance Company to provide prescription drug insurance to all eligible employees from February 1, 2011 through January 31, 2012.

SECTION 2.        That the expenditure of up to $27,057,000.00, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Department of Human Resources is hereby authorized and directed.  Department of Human Resources No. 46-01, OL1 3, OL3   3362, OCA 461035, Subfund 209, Amount $57,000.00; and Department of Human Resources No. 46-01, OL 1 3, OL3 3363, OCA 460005, Subfund 209, $27,000,000.00.

See attachment: 2011 Drug Appropriation Attachment

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.