Explanation
BACKGROUND: 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 2008-09 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 second renewal option.
Contract compliance number is 31-1142815
FISCAL IMPACT: To enter into contract with United HealthCare Insurance Company to establish the maximum obligation liability of $23,057,000 for the prescription drug plan administration services from February 1, 2010 through January 31, 2011. Funding is available in the 2010 budget for this contract. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contract. The current contract expires January 31, 2009.
Title
To authorize the Human Resources Director to enter into contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance coverage from February 1, 2010 through January 31, 2011 and to authorize the expenditure of $23,057,000 from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said contract; and to delcare and emergency. ($23,057,000)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance from February 1, 2010 through January 31, 2011; 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 $23,057,000, 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 to enter into a contract and to pay the associated contract costs to avoid interruption in necessary services for the preservation of 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 enter into contract with United HealthCare Insurance Company to provide prescription drug insurance to all eligible employees from February 1, 2010 through January 31, 2011.
SECTION 2. That the expenditure of up to $23,057,000, 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; and Department of Human Resources No. 46-01, OL 1 3, OL3 3363, OCA 460005, Subfund 209, $23,000,000.
See attachment: 2010 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.