Agenda Item # 1
Columbus Consolidated Government
Council Meeting
September 13, 2016
Agenda Report # 34
TO: Mayor and Councilors
SUBJECT: Health Insurance ? Active Employees and Pre-65 Retirees
INITIATED BY: Human Resources and Finance Department
Recommendation: Approval is requested of a resolution confirming rate changes
for Health Insurance for Active employees and Pre-65 Retirees, modifications to
the plan benefits, and approving a Wellness Incentive Option.
Background: The Columbus Consolidated Government provides a health insurance
program to its employees and retirees. The current program is self-insured for
employees and pre-65 retirees and their dependents. The rates are adjusted
annually based on the costs of the plan.
Analysis: The City?s contribution increased from $5,650 in FY16 to $6,100 in
FY17 per budgeted position totaling $1.2 million. Council approved a
contribution strategy of 70% Employer and 30% Employee. Over the last several
years, the City has made up the deficit at year end which equates to
approximately 83%/17% contribution split. In accordance with these guidelines,
Ordinance No. 16-17, passed by Council June 14, 2016, approved Health Insurance
rate changes for calendar year 2017 for Active employees and Pre-65 Retirees
and made modifications to the plan benefits including access to the Wellness
Center under all plans. Approval is now sought to provide a Wellness Incentive
Option.
Financial Considerations: The projected reimbursements to be paid as a part of
the wellness incentive are $234,372 annually. The participation in the program
is in direct correlation to the return on investment (ROI) which is expected to
be a 3:1 ratio by year 3.
Legal Considerations: The Columbus Council must authorize any rate changes and
plan modifications and financial incentives made to the self-insured Health
Insurance program.
Recommendations/Actions: Approve a resolution authorizing a Wellness Incentive
Option as part of the previously approved Health Insurance rates and benefit
changes approved by Ordinance 16-17.
A RESOLUTION
NO. ____
WHEREAS, the Columbus Consolidated Government offers a self-insured
healthcare plan to its active employees and pre-65 retirees; and,
WHEREAS, the cost of the plan is comprised of plan benefits, employer
contributions, and employee/retirees contributions; and,
WHEREAS, the Columbus Consolidated Government evaluates and adjusts, if
needed, plan benefits and contributions annually based on the expected cost of
the plan; and,
WHEREAS, the Columbus Consolidated Government must authorize
implementation of the recommended plan design changes and premium rates; and,
WHEREAS, this Council adopted Ordinance No. 16-17 which set the
following Health Care Plan Design and employee contributions for the 2017
calendar year:
2017 Health Care
Plan Design
Benefit Design Silver Plan
Open Access POS
Gold Plan
Open Access POS
Deductible (Single/Family) $2,000/$4,000 $1,000/$2,000
Coinsurance 80% 90%
Global out-of-pocket $6,350/$12,700 $6,350/$12,700
Medical copayments
HWC office visits $0 $0
PCP office visits $30 $20
SP office visits $40 $30
Emergency Room $200 $150
Prescription drug (Retail/Mail Order)
Available at HWC $0 $0
Tier 1 $20/$40 $20/$40
Tier 2 $40/$80 $40/$80
Tier 3 $60/$120 $60/$120
Health Insurance Premium Rates ? Effective January 1, 2017
Active Employees Contributions at 30%
Silver Plan Biweekly Gold Plan Biweekly
Employee $73.03 $104.65
Employee +Spouse $137.29 $196.74
Employee + Child(ren) $127.82 $183.16
Employee + Family $202.31 $289.90
Health Insurance Premium Rates ? Effective January 1, 2017
Pre-65 Retiree Contributions at 50% Retiree, 20% Dependents
Silver Plan Monthly Gold Plan Monthly
Employee $263.72 $332.23
Employee +Spouse $793.26 $922.06
Employee + Child(ren) $738.53 $858.42
Employee + Family $1,168.90 $1,358.67
Health and Wellness Center is available to all employees enrolled in the Silver
or Gold plan. No cost for services or prescriptions at HWC.
Effective with the plan year beginning January 1, 2017, any ?working spouse?
shall be eligible for coverage in the Columbus Consolidated Government
Employee/Retiree Self-Funded Medical Benefit Plan conditioned upon payment of a
monthly/biweekly surcharge of $356.98/$164.76. Working spouse shall mean
spouses of employees and non-Medicare retirees who have access to health care
coverage provided by their employer; and,
WHEREAS, Council wishes to include a Wellness Incentive Option in as a
part of the Health Benefit Plan described above;
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
That a Wellness Incentive Option is adopted that includes the following Health
Reimbursement Account (HRA) Credits for compliance:
? Participants receive $500 HRA credit for compliance
o $100 for Health Risk Assessment
o $200 for Biometric Screening
o $200 for Coaching if High Risk, Automatically Received if not High Risk
o Used to offset deductible
For 2017 will only apply to employees, not spouses. Applies to both Silver and
Gold Plans.
___________________________
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the 13th day of September, 2016 and adopted by the affirmative vote of
_________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Turner-Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.
_________________________________ ___________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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