City of Columbus - File #: 0123-2006

• File #: 0123-2006
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 1/12/2006
• In control: Administration Committee
• On agenda: 1/30/2006
• Final action: 2/1/2006
• Title: To authorize the Human Resources Director to enter into a contract with United Health Care Services Inc. to provide all eligible employees medical insurance coverage from February 1, 2006 through January 31, 2007 and to authorize the expenditure of $51,721,317.00 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. ($51,721,317.00)

Date	Ver.	Action By	Action	Result
2/1/2006	1	MAYOR	Signed
2/1/2006	1	CITY CLERK	Attest
1/30/2006	1	Columbus City Council	Approved	Pass
1/30/2006	1	COUNCIL PRESIDENT	Signed
1/20/2006	1	ODI DIRECTOR	Reviewed and Approved
1/20/2006	1	HR Drafter	Sent for Approval
1/20/2006	1	Auditor Reviewer	Contingent
1/20/2006	1	HR Drafter	Sent for Approval
1/20/2006	1	CITY ATTORNEY	Reviewed and Approved
1/20/2006	1	HR Drafter	Sent for Approval
1/20/2006	1	Auditor Reviewer	Contingent
1/20/2006	1	CITY AUDITOR	Contingent
1/20/2006	1	HR Drafter	Sent to Clerk's Office for Council
1/17/2006	1	HR DIRECTOR	Reviewed and Approved
1/17/2006	1	HR Drafter	Sent for Approval
1/17/2006	1	Finance Reviewer	Reviewed and Approved
1/17/2006	1	FINANCE DIRECTOR	Reviewed and Approved
1/17/2006	1	HR Drafter	Sent for Approval
1/12/2006	1	HR Drafter	Sent for Approval

Explanation
BACKGROUND: As a result of a Request For Proposal process in accordance with Section 329.12 of the Columbus City Codes, seven medical insurance bid responses were reviewed by the City's Evaluation Committee, comprised of five members.
Each proposal was evaluated on the following criteria as required by section 329.12: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. United Health Care Services, Inc. is recommended as the medical plan administrator. United Health Care offered the lowest net costs. The medical administrative rate of $24.37 per employee per month for the first two year, $25.12 in year two, and $26.37 the third year; renewable annually. The discount guarantee is based on the fixed amount of fees at risk. UHC placed fees at risk with target discount percentages. Cost containment, disease management, training, and utilization review services, are also included in the medical administrative fee. United Health Care represents the ability to duplicate negotiated benefits in both traditional and PPO programs, provides dedicated claims and customer service and, offers a broad PPO hospital and physician network.

Contract compliance number is 36-2739571

To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the medical insurance program is necessary to insure continuation of employee insurance coverage. Cost estimates were based on 2004-2005 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.

FISCAL IMPACT: To enter into a contract with United Health Care Services, Inc. to establish the maximum obligation liability, and to authorize the expenditure of $51,721,317.0...