Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SUMMACARE FOR CERTAIN HEALTH BENEFIT PLAN SERVICES; AND DECLARING AN EMERGENCY.
Brief Description: The City of Hudson provides certain health benefits (medical and prescription drug coverage) to regular full-time city employees. The attached legislation seeks Council’s authorization for the City Manager to enter into a contract with SummaCare (Summa) for health benefit plan services for the period of January 1, 2022 through December 31, 2022.
Body
Legislative History
None.
Purpose & Explanation
The purpose of this resolution is to authorize the City Manager to enter into a health benefit plan contract with Summa. Staff is recommending entering into a contract with Summa for medical and prescription drug coverage for the period of January 1, 2022 through December 31, 2022.
Staff requested proposals for our current fully insured preferred provider organization (PPO). The initial renewal quote from Summa was a 15% increase while the final proposal includes a 3.33% increase over 2021 rates. Medical Mutual started at 11% and came down to 7.9%, Anthem and United Health Care declined to submit proposals. The employee contribution percentage for 2022 remains the same as 2021 at 15%.
Over the past five years the City has received the following renewals:
2018: 4.05% Increase
2019: 1.20% Decrease
2020: 5.12% Decrease
2021: 4.00% Increase
2022: 3.33% Increase
The average increase from 2018 to 2022 is 1.01%
Staff is once again recommending that the City fund a Health Reimbursement Account (HRA) for each employee equal to the employee's deductible, a maximum of $2,000/$4,000 (single/family) per employee to cover the City’s potential liability.
Timing Considerations
Open enrollment for health insurance is November 15 through November 29, 2021.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council approve the attached Resolution authorizing the City Manager to enter into the health benefit plan contract with SummaCare. Staff also recommends the legislation be passed as an emergency measure, so it is in place for open enrollment.
Submitted by,
Jane Howington, City Manager,
Jeff Knoblauch, Assistant City Manager - Finance Director
Brian Griffith, Director - Management & Budget
Suzanne Havranek, HR Manager