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
...
Click here for full text