City of Columbus - File #: 0020-2005

• File #: 0020-2005
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 12/21/2004
• In control: Administration Committee
• On agenda: 1/10/2005
• Final action: 1/12/2005
• Title: To authorize the Human Resources Director to modify and extend the current contract with UHC to allow the City to receive higher provider discounts along with a penalty if the target discount is not met; and to modify the monthly medical administrative fee to $39 per employee per month from February 1, 2005 through January 31, 2006; to authorize the extension of the medical employee insurance contracts; to waive the competitive bidding requirements of the Columbus City Code; to authorize the expenditure of $42,728,673.00; and to declare an emergency. ($42,728,673.00)

Date	Ver.	Action By	Action	Result
1/12/2005	1	MAYOR	Signed
1/12/2005	1	CITY CLERK	Attest
1/10/2005	1	Columbus City Council	Approved	Pass
1/10/2005	1	COUNCIL PRESIDENT	Signed
12/30/2004	1	HR Drafter	Sent for Approval
12/30/2004	1	Auditor Reviewer	Contingent
12/30/2004	1	CITY AUDITOR	Reviewed and Approved
12/30/2004	1	HR Drafter	Sent for Approval
12/30/2004	1	CITY ATTORNEY	Reviewed and Approved
12/30/2004	1	HR Drafter	Sent to Clerk's Office for Council
12/29/2004	1	EBOCO Reviewer	Reviewed and Approved
12/29/2004	1	ODI DIRECTOR	Reviewed and Approved
12/29/2004	1	HR Drafter	Sent for Approval
12/29/2004	1	HR Drafter	Sent for Approval
12/29/2004	1	FINANCE DIRECTOR	Reviewed and Approved
12/27/2004	1	HR Drafter	Sent for Approval
12/27/2004	1	Finance Reviewer	Reviewed and Approved
12/27/2004	1	HR Drafter	Sent for Approval
12/27/2004	1	HR Drafter	Sent for Approval
12/27/2004	1	Auditor Reviewer	Contingent
12/27/2004	1	HR Drafter	Sent for Approval
12/22/2004	1	HR DIRECTOR	Reviewed and Approved
12/21/2004	1	HR Drafter	Sent for Approval

Explanation
BACKGROUND: The City of Columbus currently contracts with United Health Care Services (UHC) for employee medical insurance benefits January 31, 2005. Recently, the Human Resources Department entered into discussions with UHC about alternate financing; whereby the City would receive higher provider discounts along with a penalty if the target was not met; and the medical monthly administrative fee would be lowered to $39.95 per employee per month. Currently the City receives provider discounts, with a 100% pass through arrangement. Based upon current utilization and administrative fees, the City and Mercer HR Consulting, the City's benefit consultant, expect the proposed arrangement to be more cost effective. The projected implementation date is February 1, 2005. The Human Resources Department solicited a one-year contract extension to modify and extend the existing contract and to provide for additional funding February 1, 2005 through January 31, 2006, for UHC medical insurance coverage. UHC has agreed to extend the respective contract at the aforementioned medical contract terms.

Contract compliance number is 31-1142815.

FISCAL IMPACT: To modify and extend the existing medical contract with UHC to allow the City to receive higher provider discounts along with a penalty if the target discount is not met; and to modify the monthly medical administrative fee to $39.95 per employee per month; to authorize the expenditure of $42,728,673.00 from the Employee Benefits Fund; and to authorize a one-year contract extension on the medical contract from February 1, 2005 through January 31, 2006. Funding is available in the 2005 budget for this contract. This ordinance is an emergency measure to ensure continued insurance coverage as negotiated by union contracts.

Title
To authorize the Human Resources Director to modify and extend the current contract with UHC to allow the City to receive higher provider discounts along with a penalt...