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. Cost estimates for 2021 claims and administrative fees are based on 2019-20 benefits fund expenditures using a two-year average of actual city utilization, expected changes due to union negotiations, as well as input from insurance carriers and in conjunction with industry trends, and actuarial services. The revenue for the 2021 benefits fund includes the 2021 Department budgeted amounts, employee premium contributions, COBRA premium deposits, and prescription drug rebates.
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 2021 are estimated at $205,692,240. A total of $205,692,240 is projected to be required for 2021. These funds are needed to cover the costs of the City employee insurances and wellness programs. This ordinance is contingent on the passage of the 2021 Operating Budget (ordinances 2502-2020, 2503-2020, and 2504-2020).
Appropriation is being made to the following programs:
Medical Plan* 191,846,000
Ohio AFSCME Cares Plan 25,000
Front Street Fitness 60,240
Dental Plan 7,750,000
Vision Plan 1,076,000
Life Insurance Plan 1,300,000
Disability Plan - Dearborn 5,000
Disability Plan - Hartford 3,630,000
TOTAL $205,692,240
ยท Includes medical, drug, COBRA, tobacco cessation, Cancer Bridge, & PCORI fees.
Title
To make appropriations for the 12 months ending January 31, 2022 for the funding of the City employee insurance programs; and to declare a...
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