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 2018 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 2018 are estimated at $214,145,441. A total of $214,145,441 is projected to be required for 2018. These funds are needed to cover the costs of the City employee insurances and wellness programs. Contingent on the passage of the 2018 Operating Budget (ordinances 3008-2017, 3009-2017, and 3010-2017).
Appropriation is being made to the following programs:
Medical Plan 150,443,052
COBRA 12,000
Front Street Fitness 60,240
Biometric Health Screenings 104,149
Tobacco Cessation 36,000
Dental Plan 8,050,000
Drug Plan 50,160,000
Vision Plan 1,040,000
Life Plan 1,000,000
Disability Plan 3,240,000
TOTAL $214,145,441
Title
To make appropriations for the 12 months ending January 31, 2019 for the funding of the City employee insurance programs; and to declare an emergency. ($214,145,441.00)
Body
WHEREAS, in order to maintain the employee insurance programs in accordance with the negotiated la...
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