Explanation
BACKGROUND: To maintain the employee insurance programs in accordance with the negotiated labor contracts, appropriation is necessary for the continuation of all employee benefits programs. To determine the amounts necessary for the annual appropriation, current utilization and projected future claims were analyzed and trended on the basis of an 18-month trend of actual city utilization in conjunction with industry trends, as well as actuarial services. The appropriation included 2015 budgeted amounts, employee premium contributions, COBRA premium deposits, and prescription drug rebate deposits.
Emergency action is requested to ensure the health insurance program for city employees are able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Claims costs and administrative fees for 2015 are estimated at $158,554,101. A total of $158,554,101 is projected to be required for 2015. These funds are needed to cover the costs of the City employee insurances. Contingent on the passage of the 2015 Operating Budget (ordinances 2620-2014 and 2621-2014).
Appropriation is being made to the following programs:
Medical Plan 113,153,083
COBRA 10,000
Front Street Fitness 40,000
Biometric Health Screenings 90,973
Tobacco Cessation 69,375
Dental Plan 7,895,762
Drug Plan 32,097,000
Vision Plan 1,018,673
Life Plan 1,200,000
Disability Plan 2,979,235
TOTAL $158,554,101
Title
To make appropriations for the 12 months ending January 31, 2016 for the funding of the City employee insurance programs; and to declare an emergency. ($158,554,101.00)
Body
WHEREAS, in order to maintain the employee insurance programs in accordance with the negotiated labor...
Click here for full text