Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH MEDICAL MUTUAL OF OHIO (MMO) 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 Medical Mutual of Ohio (MMO) for health benefit plan services for the period of January 1, 2024 through December 31, 2024.
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 MMO. Staff is recommending entering into a contract with MMO for medical and prescription drug coverage for the period of January 1, 2024 through December 31, 2024.
The initial renewal quote from MMO was a 16.0% increase and was reduced to a 9.7% increase over 2023 in a follow up proposal. The City did put out a request for proposals and Summa was the only response at an increase of 13.0%. As part of this renewal the plan’s office visit and prescription drug copay would increase slightly. The employee contribution percentage for 2024 remains the same as 2023 at 15%.
Over the past seven 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
2023: 2.73% Increase
2024: 9.7% Increase
The average increase from 2018 to 2024 is 2.5%
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 $2,500/$5,000 (single/family) per employee to cover the City’s potential liability. This is an increase from $2,000/$4,000 in 2023.
Timing Considerations
Open enrollment for health insurance is November 22 through December 7, 2023.
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 Medical Mutual of Ohio. Staff also recommends the legislation be passed as an emergency measure, so it is in place for open enrollment.
Submitted by,
Thomas J. Sheridan, City Manager,
Jeff Knoblauch, Assistant City Manager - Finance Director
Brian Griffith, Director - Management & Budget
Suzanne Havranek, HR Manager