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. (Medco) and to provide additional funding for the continuation of the employee prescription drug insurance program. Cost estimates were based on 2002-2003 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 input from the City's employee benefits consultant. The contract was awarded in 2002 as a result of an extensive RFP process. The contract is for a three-year period renewable annually, subject to annual appropriation; this ordinance represents the final renewal option.
Contract compliance number is 31-1142815.
FISCAL IMPACT: To modify and extend the existing contract with United Health Care Services, Inc., to establish the maximum obligation liability, and to authorize the expenditure of $13,868,839.00 for prescription drug plan administration services from February 1, 2004 through January 31, 2005. Funding is available in the 2004 budget for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts.
Title
To authorize the Human Resources Director to modify and extend the contract with United Health Care Services Inc. to provide all eligible employees prescription drug insurance coverage from February 1, 2004 through January 31, 2005 and to authorize the expenditure of $13,868,839.00 from the Employee Benefits Insurance Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($13,868,839.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with United Health Care Services, Inc. (Medco) to provide all eligible employees prescription drug insurance from February 1, 2004 through January 31, 2005; and
WHEREAS, it is necessary to authorize the expenditure of up to $13,868,839.00 or so much thereof as may be necessary to pay contract costs for prescription drug insurance services; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is necessary to modify and extend the existing contract to ensure continued employee insurance coverage and to pay the associated contract costs 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 Health Care Services, Inc. to provide prescription drug insurance to all eligible employees from February 1, 2004 through January 31, 2005.
SECTION 2. That the expenditure of up to $13,868,839.00 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.
SEE ATTACHMENT ORD 2752-2003 UHC-PRESCRIPTION DRUG
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.