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, 2023 through December 31, 2023.
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, 2023 through December 31, 2023.
The initial renewal quote from Summa was a 12.4% increase while the MMO proposal was a 2.73% increase over 2022 rates. Summa did reduce their renewal rate to 5.44% in a follow up proposal. The employee contribution percentage for 2023 remains the same as 2022 at 15%.
Over the past six 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
The average increase from 2018 to 2023 is 1.30%
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 16 through November 30, 2022.
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 i...
Click here for full text