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 United Health Care of Ohio, and to provide additional appropriation for the continuation of the medical insurance program. Additional appropriation is needed due to higher than projected medical claims.
In February 2005, $42.7 million was appropriated to United Health Care; however, to date claim costs have exceeded $42.28 thereby necessitating addition appropriation to meet anticipated annual expenses. Total projected expense is $47.7 million, year to date $44.7 has been appropriated, and therefore an additional $3 million 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 from all insurance subfunds.
Contract compliance number: 31-1142815
FISCAL IMPACT: No fiscal impact; funding is available to modify and extend contract with United Health Care of Ohio, to increase the maximum obligation liability, and to authorize the expenditure of $3 million for United Health Care of Ohio through January 31, 2006, and to provide additional appropriations for medical 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.
Title
To authorize the City Auditor to appropriate $3 million from within the unappropriated balance of the Employee Benefits Fund; to authorize the Human Resources Director to modify and extend the contract with United Health Care to provide all employees with medical insurance coverage through January 31, 2006, and to authorize the expenditure of $3 million 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. ($3,000,000.0...
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