Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SUMMACARE (SUMMA) 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, 2021 thru December 31, 2021.
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, 2021 through December 31, 2020.
The initial renewal quote from Summa was a 6.7% increase while the final proposal includes a 4.0% increase over 2020 rates. The employee contribution percentage for 2021 remains the same as 2020 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
The overall increase from 2017 rates to 2021 rates is 1.43%
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 6 through November 20, 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 emergenc...
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