Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SUMMACARE FOR CERTAIN HEALTH BENEFIT PLAN SERVICES; AND DECLARING AN EMERGENCY
Executive Summary: The City of Hudson provides certain (medical and prescription drug coverage) health benefits to regular full-time city employees. The attached legislation seeks Council's authorization for the City Manager to enter into a contract with SummaCare for certain health benefit plan services for the period of January 1, 2014 thru December 31, 2014.
Body
Legislative History
None.
Purpose & Explanation
Annually during the month of October, the City begins preparing for health insurance for the upcoming year. During this period staff reviews, analyzes and recommends a health benefit plan to City Council that meets the goal of providing employees with an equitable health benefit plan at a fiscally responsible cost.
To achieve the above-stated goal, staff recently considered several insurance plans including SummaCare, Medical Mutual and the plan offered through Summit County. Medical Mutual did not provide a quote as they indicated that it would not be competitive. The Summit County Plan was attractive but it required a three-year commitment with no guarantee of rates in years two and three. Consequently, staff focused on SummaCare. SummaCare originally quoted a 15.73% increase for medical and prescription coverage. After negotiations with SummaCare, staff is recommending entering into a contract with SummaCare for medical and prescription drug coverage for the period of January 1, 2014 thru December 31, 2014 at an increase of 8.19%.
The renewal with SummaCare includes a plan that is similar to the City's current plan, except for a Health Care Reform change which requires that co-pays for medical and prescriptions be included in the out-of-pocket maximum. The City and its employees will not be impacted by this change in 2014.
Staff is once again recommending that the City fund...
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