City of Columbus - File #: 0019-2005

• File #: 0019-2005
• 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 the current contract with UHC to allow the City to receive guaranteed prescription drug rebates; and to maintain the monthly prescription drug administrative fee to $.69 per employee per month from February 1, 2005 through January 31, 2006; to authorize the extension of the prescription drug employee insurance contracts, to waive the competitive bidding requirements of the Columbus City Code; and to authorize the expenditure of $14,905,475. from the Employee Benefits Insurance Fund, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($14,905,475.)

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 Disapproved
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	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, Inc. (UHC) (Medco) for employee prescription drug benefits through January 31, 2005. Recently, the Human Resources Department entered into discussions with UHC about alternate financing; whereby the City would receive prescription drug rebates. The prescription drug monthly administrative fee would be maintained at the $.69 per employee per month rate. 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, February 1, 2005 through January 31, 2006, for UHC prescription drug. UHC has agreed to extend the respective contract at the aforementioned prescription drug contract terms. The contract is for one year; subject to annual appropriation.

Contract compliance number is 31-1142815

FISCAL IMPACT: To modify the existing prescription drug contract with UHC to allow the City to receive guaranteed prescription drug rebates and to maintain the monthly prescription drug administrative fee to $.69 per employee per month, to authorize the expenditure of $14,905,475.00 from the Employee Benefits Fund; and to authorize a one-year contract extension on prescription drug contract from February 1, 2005 through January 31, 2006, funding is available in the 2005 budget for this contract, or so much thereof as may be necessary to pay the costs of said contract; and to declare an emergency. ($14,905,475

Title
To authorize the Human Resources Director to modify the current contract with UHC to allow the City to receive guaranteed prescription drug rebates; and to maintain the monthly prescription drug administrative fee to $.69 per employee per month from February 1, 2005 through January 31, 2006; to authorize the e...