Explanation
BACKGROUND:
Additional funding of the vision insurance program is necessary to insure continuation of the vision insurance program in accordance with the negotiated labor contracts. The Human Resources Department requests to contract with EyeMed Vision Care, LLC and to provide funding from February 1, 2022 through January 31, 2023 for this program. The program services approximately 24,000 active benefit enrolled employees and their dependents and COBRA participants.
In 2021, the Human Resources Employee Benefits Office, with the assistance and consultation of the benefits consulting firm, put out a Request for Proposals for vision services plan administration for city employees, via RFQ019153.
The RFP evaluation committee reviewed five vision providers and interviewed the top three finalists. After careful consideration and evaluation, EyeMed Vision Care, LLC was selected as being the highest qualified offeror for vision services for the city.
The effective date for the contract is February 1, 2022; the contract term is 3 years, with two (2) one (1) year renewals. This represents year one of the three year contract.
The total obligation of this contract in year one is $1,021,000. The breakdown of expense is $21,000 for administrative fees and $1,000,000 for claims.
Cost estimates for 2022 are based on 2020-21 benefit 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 from the City's employee benefits consultant.
Emergency action is requested to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service.
FISCAL IMPACT: Funding is available in the 2022 Employee Benefits Fund for this contract. This ordinance is contingent on the passage of the 2022 insurance appropriation ordinance 0014-2022.
Title
To authorize the Human Resources Director to enter into a contract with EyeMed Vision Care, LLC to provide all eligible employees vision plan administration from February 1, 2022 through January 31, 2023; to authorize the expenditure of $1,021,000 from the Employee Benefits Fund, or so much thereof as may be necessary, to pay the costs of said contract; and to declare an emergency. ($1,021,000.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into a contract with EyeMed Vision Care, LLC to provide all eligible employees vision plan administration from February 1, 2022 through January 31, 2023; and
WHEREAS, it is necessary to authorize the expenditure of up to $1,021,000 or so much thereof as may be necessary to pay contract costs for vision plan administration; 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 Director to enter into contract with EyeMed Vision Care, LLC to ensure the vision insurance program for city employees is able to commence as soon as contractually possible, thereby maintaining continuity of service; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Human Resources Director is hereby authorized to enter into a contract with EyeMed Vision Care, LLC to provide vision plan administration to all eligible employees from February 1, 2022 through January 31, 2023.
SECTION 2. That the expenditure of $1,021,000 or so much thereof as may be necessary for coverage is hereby authorized to be expended as follows:
Department: 4602 | Fund: 5502 | Subfund: 550204 | Program: RM005 | Amount: $21,000 (Vision Admin)
Department: 4602 | Fund: 5502 | Subfund: 550204 | Program: RM006 | Amount: $1,000,000 (Vision Claims)
SECTION 3. 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 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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 ten days after passage, if the Mayor neither approves nor vetoes the same.