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.
Executive Summary: 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, 2018 thru December 31, 2018.
Body
Legislative History
None.
Purpose & Explanation
Staff marketed our current fully insured preferred provider organization (PPO) through an RFP process. Our current provider, Summacare, offered a renewal rate at a 7% increase, Anthem offered 29.4% and Medical Mutual was at 3.6%.
Based on our analysis and meetings with the carriers, it is our recommendation that the City select the Medical Mutual fully insured proposal. Our recommendation is based on the following:
? MMO provided the lowest cost proposal.
? MMO provides robust reporting on plan performance.
? MMO included a wellness fund of $2,500 for the City to spend on employee wellness.
? MMO proposal included administration of the City's Cobra. The City currently pays for an outside vendor to provide this service.
As part of the process, staff also obtained quotes for a self-insurance program. Medical Mutual also provided the best overall self-insured option for the City. While the expected claim costs and fees to self-insure are only 1.2% higher than the current fully insured rates, there would be an additional exposure of $418,307 to the City for its aggregate corridor (125% of expected claims). We are not recommending self-insuring the City's current benefit plan at this time due to the uncertainty of the City's medical claims. Staff is recommending we re-evaluate the self-insured option after we have some experience in the Medical Mutual network and th...
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