Explanation
BACKGROUND: To maintain the employee insurance programs in accordance with the negotiated labor contracts, appropriation is necessary for the continuation of all employee benefits programs. Cost estimates for 2027 claims and fee runout and 2027 claims and administrative fees are based on 2024-2026 benefits fund expenditures using a weighted average of actual city utilization and expected changes due to union negotiations. Input from insurance carriers, in conjunction with industry trends, and actuarial services are also key factors. The revenue for the 2027 benefits fund includes the 2027 Department budgeted amounts, employee premium contributions, COBRA premium deposits, and medical and prescription drug rebates.
FISCAL IMPACT: Claims costs and administrative fees for 2026 runout and 2027 are estimated at $301,030,000.00. These funds are needed to cover the costs of the City employee insurances and wellness programs. This ordinance is contingent on the passage of the 2027 Operating Budget.
Appropriation is being made to the following programs:
Medical Plan* $281,620.000.00
Ohio AFSCME Cares Plan 30,000.00
Dental Plan 8,650,000.00
Vision Plan 1,520,000.00
Life Plan 1,800,000.00
Disability Plan 4,530,000.00
Employee Fitness Center 180,000.00
Wellness initiatives 2,700,000.00
TOTAL $301,030,000.00
*Includes medical, drug, COBRA, tobacco cessation and PCORI fees
Title
To make appropriations for 12 months, January 2027 ending December 2027, for the funding of the City employee insurance programs; to authorize the Director of the Department of Human Resources to make payments from said appropriations. ($301,030,000.00)
Body
WHEREAS, in order to maintain the employee ...
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