Explanation
BACKGROUND:
Additional funding of the vision insurance program is necessary to insure continuation of the vision insurance program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with EyeMed Vision Care, LLC and its wholly owned subsidiary, First American Administrators, Inc. and to provide funding from February 1, 2025 through January 31, 2026 for this program.
The contract term is 3 years, with two (2) one (1) year renewals. This represents year one of the renewal or year four of the contract.
The total obligation of this contract is $1,621,000.00. The breakdown of expense is $21,000.00 for administrative fees and $1,600,000.00 for claims.
Cost estimates for 2025 are based on 2022-2024 benefit fund expenditures using a two-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.
Emergency action is requested to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2025 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2025 insurance appropriation ordinance 3201-2024.
Title
To authorize the Director of the Department of Human Resources to renew a contract with EyeMed Vision Care, LLC and its wholly owned subsidiary, First American Administrators, Inc. to provide all eligible employees vision plan administration from February 1, 2025 through January 31, 2026; to authorize the expenditure of $1,621,000.00 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. ($1,621,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with EyeMed Vision Care, LLC and its...
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