Explanation
BACKGROUND: To maintain insurance programs in accordance with the negotiated labor contracts, additional funding of the prescription drug insurance program is necessary to insure continuation of the prescription drug insurance program. Cost estimates were based on 2012-13 trust fund expenditures using a three year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and from the City’s employee benefits consultant. The contract is for a three-year period, subject to annual appropriation; this ordinance represents the third year.
Contract compliance number is 41-1289245
FISCAL IMPACT: To enter into contract with United HealthCare Insurance Company to establish the maximum obligation liability of $26,139,695.00 for the prescription drug plan administration services from February 1, 2014 through January 31, 2015. Funding is available in the 2014 budget for this contract.
Title
To authorize the Human Resources Director to modify and extend the contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance coverage from February 1, 2014 through January 31, 2015 and to authorize the expenditure of $26,139,695.00 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. ($26,139,695.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to modify and extend the contract with United HealthCare Insurance Company to provide all eligible employees prescription drug insurance from February 1, 2014 through January 31, 2015; and
WHEREAS, United HealthCare Insurance Company has indicated its intention to use an MBE and report the dollar amount quarterly.
WHEREAS, it is necessary to authorize the expenditure of up to $26,139,695.00 or so much thereof as may be necessary to pay contract costs for prescription drug insurance services;
WHEREAS,...
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