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 United Health Care Services, Inc. and to provide additional appropriations for the continuation of the medical insurance program. Additional appropriation is needed due to the higher than expected medical claims.
In February 2004, $37.7 million was appropriated to United Health Care Services, Inc.; however, to date claim costs have exceeded $36.5 million, thereby necessitating additional appropriation to meet anticipated annual expenses.
Contract compliance number: 31-1142815
FISCAL IMPACT: To modify and extend the existing contract with United Health Care Services, Inc., to increase the maximum obligation liability, and to authorize the expenditure of $6,300,000.00 for United Health Care Services, Inc. through January 31, 2005 from within the Employee Benefits Fund; and provide additional appropriation for medical expenses. Funding is available in the 2004 budget for this contract. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
Title
To authorize the City Auditor to appropriate $6,300,000.00 from within the Employee Benefits Fund; To authorize the Human Resources Director to modify and extend the contract with United Health Care Services, Inc. to provide all employees with medical insurance coverage through January 31, 2005, and to authorize the expenditure of $6,300,000.00 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. ($6,300,000
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract to provide all eligible employees medical claims insurance through January 31, 2005; and
WHEREAS, it is necessary to authorize the expenditure $6,300,000; or so much thereof as may be necessary to pay contract costs for group medical insurance coverage; and
WHEREAS, it is necessary to authorize the appropriation of $6,300,000; or so much thereof as may be necessary to pay contract costs for group medical insurance coverage from unappropriated balance of the Employee Benefits Fund; and
WHEREAS, as 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 $6,300,000 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 unapproppriated for any other purpose.
SECTION 2. That the Human Resources Director is hereby authorized to modify and extend the contract with United Health Care Services, Inc. to provide all eligible employees medical insurance coverage through January 31, 2005.
SECTION 3. That the expenditure and appropriation of $6,300,000, or so much thereof as may be necessary for coverage from the Employee Benefits Fund, 502 , Human Resources Department, 46-01, is hereby authorized and directed as follows:
See attachment ORD2219-2004
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.