Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH BEAZLEY INSURANCE COMPANY, INC. FOR GAP MEDICAL INSURANCE TO COVER THE COST OF THE CITY’S HEALTH INSURANCE DEDUCTIBLE; AND DECLARING AN EMERGENCY.
Executive Summary: As part of the City’s health insurance plan, we fund our Health Reimbursement Account (HRA) equal to the employee's deductible, a maximum of $2,000/$4,000 (single/family) per employee. This resolution would provide authorization for the City Manager to enter into a contract to insure the funding of the deductible which in turn would reduce the overall health insurance cost for the period of January 1, 2018 thru December 31, 2018.
Body
Legislative History
None.
Purpose & Explanation
There is separate legislation authorizing the City Manager to enter into a contract with Medical Mutual of Ohio (MMO) for health care coverage. As part of the coverage, the City has deductibles of $2,000/$4,000 (single/family) per employee. The purpose of this legislation is to enter into a contract to insure the funding of the deductibles.
The health care renewal rate with Medical Mutual was an increase of 3.6%. This insurance contract would further reduce the renewal cost to the City to approximately 1.9% based on current funding.
Timing Considerations
Open enrollment for health insurance starts November 1, 2017.
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 Beazley Insurance Company. Staff also recommends the legislation be passed as an emergency measure so it is in place for open enrollment.
Submitted by,
Jane Howington, City Manager,
Jeff Knoblauch, Assistant City Manager
Brian Griffith, Assistant Finance Director
Suzanne Havranek, HR Coordinator