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 2016 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 2016 are estimated at $177,211,846. A total of $177,211,846 is projected to be required for 2016. These funds are needed to cover the costs of the City employee insurances. Contingent on the passage of the 2016 Operating Budget (ordinances 2887-2015, 2888-2015, and 2889-2015).
Appropriation is being made to the following programs:
Medical Plan 123,160,769
COBRA 10,000
Front Street Fitness 55,985
Biometric Health Screenings 104,149
Tobacco Cessation 20,250
Dental Plan 8,037,070
Drug Plan 40,423,812
Vision Plan 1,017,525
Life Plan 1,200,000
Disability Plan 3,182,286
TOTAL $177,211,846
Title
To make appropriations for the 12 months ending January 31, 2017 for the funding of the City employee insurance programs; and to declare an emergency. ($177,211,846.00)
Body
WHEREAS, in order to maintain the employee insurance programs in accordance with the negotiated labor contrac...
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