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 Aetna Insurance provide additional funding for the continuation of the short-term disability insurance program. Cost estimates were based on 2005-2006 trust fund expenditures using an 18 months 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. The contract was awarded in 2005 as a result of an extensive RFP process. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the final renewal option.
Contract compliance number is 06-6033492 (2-21-08)
FISCAL IMPACT: To modify and extend the existing contract with Aetna Insurance to establish the maximum obligation liability, and to authorize the expenditure of $3,027,000.00 for short term disability administrative and claims services from February 1, 2007 through January 31, 2008. The administrative fee is $3.17 per employee per month. Funding is available in the 2007 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 existing contract with Aetna to provide all eligible employees short term disability insurance coverage from February 1, 2007 through January 31, 2008, and to authorize the expenditure of $3,027,000.00 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. ($3,027,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the existing contract with Aetna to provide all eligible employees short term disability insurance from February 1, 2007 through January 3...
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