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 2017 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 2017 are estimated at $194,966,360. A total of $194,966,360 is projected to be required for 2017. These funds are needed to cover the costs of the City employee insurances. Contingent on the passage of the 2017 Operating Budget (ordinances 2862-2016, 2863-2016, and 2864-2016).
Appropriation is being made to the following programs:
Medical Plan 133,747,834
COBRA 11,000
Front Street Fitness 55,762
Biometric Health Screenings 104,149
Tobacco Cessation 20,250
Dental Plan 8,097,365
Drug Plan 47,650,000
Vision Plan 1,040,000
Life Plan 1,000,000
Disability Plan 3,240,000
TOTAL $194,966,360
Title
To make appropriations for the 12 months ending January 31, 2018 for the funding of the City employee insurance programs; and to declare an emergency. ($194,966,360.00)
Body
WHEREAS, in order to maintain the employee insurance programs in accordance with the negotiated labor contracts, ap...
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