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 Healthcare Insurance Company (Medco), and to provide additional expenditures for the continuation of the prescription drug insurance program.
Ordinance 0119-2008 authorized the Department of Human Resources to modify and extend the contract with United Healthcare Insurance Company (Medco) to provide all eligible employees prescription drug insurance coverage from February 1, 2008 through January 31, 2009 and authorized the expenditure of $22,359,600.00 from the Employee Benefits Fund. This ordinance authorizes the Department of Human Resources to modify and extend the contract with United Healthcare Insurance Company (Medco) through February 28, 2009 and authorizes up to an additional $1,705,000.00 from the Employee Benefits Fund.
Contract compliance number: 31-1142815
FISCAL IMPACT: To modify and extend contract with United Healthcare Insurance Company (Medco) to establish the maximum obligation liability, and to authorize the expenditure of up to $1,705,000.00 to provide additional expenditures for prescription drug insurance expenses through February 28, 2009. Funding is available for this modification in the 2009 budget. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
Title
To authorize the Human Resources Director to modify and extend the contract with United Healthcare Insurance Company (Medco) to provide all eligible employees with prescription drug insurance coverage through February 28, 2009, and to authorize the expenditure of $1,705,000.00 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. ($1,705,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract to provide all eligible employees prescription drug insurance through February 28, 2009; and
WHEREAS, it is necessary to authorize the expenditure of $1,705,00.00; or so much thereof as may be necessary to pay contract costs for group prescription drug coverage; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to modify and extend the contract with United Healthcare Insurance Company (Medco) to allow continuous prescription drug insurance coverage 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 (Medco), to provide all eligible employees prescription drug insurance coverage through February 28, 2009.
SECTION 2. That the expenditure of up to $1,705,000.00, or so much thereof as may be necessary for coverage from the Employee Benefits Fund 502, Subfund 209, Department of Human Resources 46-01, OL1 -03, OL3-3362, OCA 461035, Amount $5,000.00; and Department of Human Resources 46-01, OL1 -03, OL3-3363, OCA 460005, Amount $1,700,000.00.
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.