Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH SUMMACARE 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, 2020 thru December 31, 2020.
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, 2020 through December 31, 2020.
The renewal quote from MMO was a 21.60% increase while the Summa proposal includes a 5.1% decrease over 2019 rates. The employee contribution percentage for 2020 remains the same as 2019 at 15%.
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 20 through December 6, 2019.
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 emergency measure, so it is in place for open enrollment.
Submitted by,
Jane Howington, City Manager,
Jeff Knoblauch, Assistant City Manager - Finance Director
Brian Griffith, Director - Management & Budget
Suzanne Havranek, HR Manager
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