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 Anthem Blue Cross Blue Shield, and to provide additional appropriation for the continuation of the dental insurance program. Additional appropriation is needed due to higher than projected dental claims.
In February 2003, $5.49 million was appropriated to Anthem Blue Cross Blue Shield; however, to date claim costs have exceeded $5.0 million thereby necessitating additional appropriation to meet anticipated annual expenses. Due to total projected claims and administrative expenses of $6.7 million for year 2003 an additional $1.3 million appropriation is needed. The additional appropriation and modification of contract does not require additional cash funding. Cash funding is available in the total Employee Benefits Fund for all insurance subfunds.
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend the existing contract with Anthem Blue Cross Blue Shield, to increase the maximum obligation liability, and to authorize the expenditure of $1.3 million for Anthem Blue Cross Blue Shield through January 31, 2004 and to provide additional appropriations for dental claims expenses. Funding is available for this modification in the Employee Benefits Fund. This ordinance is an emergency measure to ensure insurance coverage as negotiated by union contracts.
Contract compliance: 31-1440175
Title
To authorize the City Auditor to appropriate $1.3 million from within unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with Anthem Blue Cross Blue Shield to provide all employees with dental insurance coverage through January 31, 2004 and to authorize the expenditure of $1.3 million from the Employee Benefits Fund, or so much thereof as may be necessary to pay the costs of said c...
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