Explanation
BACKGROUND: To make payment in accordance with the Affordable Care Act (ACA), appropriation is necessary to pay the Transitional Reinsurance Fee. The fee is paid by self-funded health insurance plans to the Department of Health and Human Services based on enrollment in the health plan. In 2016, the Reinsurance Fee amount is $27 per member per year and is based on the total number of people enrolled in the health plan for the first nine months of the calendar year. The Department of Human Resources has calculated the fee to be $431,281.26.
Emergency action is requested to ensure that the Transitional Reinsurance Fee is paid.
FISCAL IMPACT: Appropriation is being made to pay the Transitional Reinsurance Fee, per the ACA, in the amount of $431,281.26. Sufficient funds are available and are set aside for these appropriation and expenditure transactions.
Title
To make appropriations and authorize the expenditure of $431,281.26 for the funding of the Transitional Reinsurance Fee from the Employee Benefits Fund; and to declare an emergency. ($431,281.26)
Body
WHEREAS, to make payment in accordance with the Affordable Care Act (ACA), appropriation is necessary to pay the Transitional Reinsurance Fee; and
WHEREAS, the fee is paid by self-funded health insurance plans to the Department of Health and Human Services based on enrollment in the health plan and the Department of Human Resources calculated the fee to be $431,281.26; and
WHEREAS, it is necessary to authorize the appropriation and expenditure of $431,281.26, or so much therefore as may be necessary to pay the Transitional Reinsurance Fee; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Human Resources in that it is immediately necessary to authorize the appropriation and expenditures to the United States Department of Health and Human Services for the Transitional Reinsurance Fee for the preservation of the public health, peace, property, safety and welfare;
Now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the monies in and from all monies estimated to come into the Employee Benefits Fund 5502, from any and all sources, the following appropriation is hereby authorized and directed:
Division 4602 |Fund: 5502 |Subfund:550208 |Object Class - 03 |Main Account - 63360 |Program - RM005 | Section 3 - 460210 | Amount: $431,281.26
SECTION 2. That from the monies appropriated in Section 1 shall be paid on order of the Human Resources Director and no other shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the expenditure of $431,281.26 or so much thereof as may be necessary to the United States Department of Health and Human Services is hereby authorized to be expended as follows:
Division 4602 |Fund: 5502 |Subfund:550208 |Object Class - 03 |Main Account - 63360 |Program - RM005 | Section 3 - 460210 | Amount: $431,281.26
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That for the reasons stated in the Preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or 10 days after passage if the Mayor neither approves no vetoes the same.