Explanation
BACKGROUND: To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the COBRA continuation insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2007-08 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. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the second renewal option.
Contract compliance number 31-1142815
FISCAL IMPACT: To modify and extend the existing contract with United HealthCare Insurance Company to establish the maximum obligation liability, and to authorize the expenditure of $15,000 for COBRA administrative services from February 1, 2009 through January 31, 2010. Funding is available in the 2009 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 existing contract with United HealthCare Insurance Company to provide all eligible employees COBRA continuation insurance coverage from February 1, 2009 through January 31, 2010 and to authorize the expenditure of $15,000 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. ($15,000)
Body
WHEREAS, it is necessary to authorize the expenditure of up to $15,000 or so much thereof as may be necessary to pay contract costs for COBRA continuation insurance services; and
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 modify and extend the existing contract with United HealthCare Insurance Company to provide COBRA continuation insurance to all eligible employees from February 1, 2009 through January 31, 2010.
SECTION 2. That the expenditure of up to $15,000, or so much thereof as may be necessary for coverage from the Employee Benefits Funds 502, Department of Human Resources No. 46-01, Character 03, Minor Object 3362, Index No 461029, Subfund 208 is hereby authorized and directed.
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.