Agenda Item # 1
Columbus Consolidated Government
Council Meeting
September 9, 2014
Agenda Report # 27
TO: Mayor and Councilors
SUBJECT: Retiree Insurance Plan
INITIATED BY: Human Resources Department
Recommendation: Approve a resolution authorizing modification of the Medicare
eligible health plan benefits and the United Healthcare Medicare Advantage plan.
Background: In October 2007 Council authorized implementation of a Medicare
Advantage plan and established a cost sharing formula whereby the City pays 25%
of the fully insured health plan premium (Ord. No. 07-70). In 2012 the City?s
benefits consultant, Northwestern Benefit Corp, recommended a change in vendor
for the Medicare Advantage Plan from BCBS to United Healthcare. The Retiree
Benefits Committee approved the change in Medicare advantage provider because
of the favorable plan design changes and decrease in premium costs.
City Council authorized a contract with United Healthcare for the retiree
Medicare Advantage Plan (Res. No. 284-12). There is no recommended change in
Medicare Advantage plan provider for the retirees for calendar year 2015 and
the benefits committee and Northwestern Benefit Corp recommends remaining with
United Healthcare.
Analysis: Several vendors made bids for coverage, however, only one other
vendor?s quote, Aetna Insurance, was considered competitive for the 2015
renewal period. After considering the one competitive bidder, the retirees
were unanimous in their decision to stay with United Healthcare. Key changes
to the plan include: raising the out of pocket maximum from $750 to $1,000,
and a slight premium increase that represents only $2.30 a month in premium
rates increase. The premium rate increased by 10% over the 2013 premium rates;
however this was mitigated by increasing the out of pocket maximum. The
retiree?s monthly rates will go from $135.61 a month to $137.92 a month.
Financial Considerations: There is minimal cost to the City for the
recommended changes due to the minimum increase in premiums.
Legal Considerations: The Council must authorize changes to the health plan.
Recommendations/Actions: The Retiree Health Benefits Committee and the Human
Resources Director recommend the proposed resolution.
A RESOLUTION
NO. ____
A RESOLUTION AUTHORIZING MODIFICATION OF THE MEDICARE ELIGIBLE HEALTH PLAN
BENEFITS AND THE UNITED HEALTHCARE MEDICARE ADVANTAGE PPO PLAN.
WHEREAS, United Healthcare has offered the City a modified Medicare
Advantage PPO plan with a minimum increase to premium costs, and raising the
out of pocket maximum from $750 to $1,000; and,
WHEREAS, The premium rate increased by 10% over 2014 rates; however,
this is mitigated by the increase in out of pocket maximum. The monthly rates
increase from $135.61 a month to $137.92 for the City subsidized retiree group
and rates will increase to $183.89 for the unsubsidized retiree group; and,
WHEREAS, the Columbus Council must authorize implementation of the
recommended changes and options.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES AS
FOLLOWS:
Section I.
That the Human Resources Director is authorized to modify the existing
Medicare Advantage PPO contract with United Healthcare to raise the
out-of-pocket maximum, and increase premium rates. The changes will become
effective January 1, 2015.
_______________________________
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the 9th day of September, 2014 and adopted at said meeting by the
affirmative vote of ______ members of said Council.
Councilor Allen voting __________
Councilor Baker voting __________
Councilor Barnes voting __________
Councilor Davis voting __________
Councilor Henderson voting __________
Councilor Huff voting __________
Councilor McDaniel voting __________
Councilor Turner Pugh voting __________
Councilor Thomas voting __________
Councilor Woodson voting __________
_________________________________ ___________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
A RESOLUTION
NO. ____
A RESOLUTION AUTHORIZING MODIFICATION OF THE MEDICARE ELIGIBLE HEALTH PLAN
BENEFITS AND THE UNITED HEALTHCARE MEDICARE ADVANTAGE PPO PLAN.
WHEREAS, United Healthcare has offered the City a modified Medicare
Advantage PPO plan with a minimum increase to premium costs, and raising the
out of pocket maximum from $750 to $1,000; and,
WHEREAS, the premium rate increased by 10% over 2014 rates; however,
this is mitigated by the increase in out of pocket maximum. The monthly rates
will go from $135.61 a month to $137.92 a month; and,
WHEREAS, the Columbus Council must authorize implementation of the
recommended changes and options.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES AS
FOLLOWS:
Section I.
That the City Manager and Human Resources Director are authorized to
modify the existing Medicare Advantage PPO contract with United Healthcare to
raise the out-of-pocket maximum, and increase premium rates. The changes will
become effective January 1, 2015.
_____________
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the 9th day of September, 2014 and adopted at said meeting by the
affirmative vote of ______ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.
________________________________ ________________________
Sandra T. Davis, Deputy Clerk of Council Teresa Pike Tomlinson, Mayor
Attachments
No attachments for this document.