Agenda Item # 1
Columbus Consolidated Government
Council Meeting
October 9, 2012
Agenda Report # 109
TO: Mayor and Councilors
SUBJECT: Health Insurance ? Active Employees and Pre-65 Retirees
INITIATED BY: Finance Department
Recommendation: Approval is requested of a resolution authorizing rate changes
for Health Insurance for Active employees and Pre-65 Retirees, modifications to
the plan benefits, and a Cost Sharing Plan.
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 shortfall to the Health Insurance Fund is estimated to be $3-4
million based on the expected costs provided by Northwestern Benefit
Corporation of Georgia, our Benefits consultant.
Financial Considerations: The Health Insurance Fund is an Internal Service
Fund and must be balanced each year.
Projected Annual Fiscal Impact: The expected impact from the plan
modifications is $1.5 million. The impact of the rate changes is estimated to
be $1.445 million.
Legal Considerations: The Columbus Council must authorize any rate changes and
plan modifications to the self-insured Health Insurance program.
Recommendations/Actions: Approve a resolution authorizing the rate changes for
Health Insurance for Active employees and Pre-65 Retirees, modifications to the
plan benefits, and a Cost Sharing Plan.
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 desires to adopt a Cost Sharing
Plan to be implemented over 5 years; and,
WHEREAS, the Columbus Council must authorize implementation of the recommended
changes and options.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
That the City Manager and/or his designee are hereby authorized to implement
the changes to the plan benefits, adjust the employee and pre-65 retiree rates
effective January 1, 2013, and adopt the Cost Sharing Plan Goal to be
implemented over 5 years.
HMO Plan
Deductible $200 / $400 (Individual / Family)
All Plans In-Network
Office Visit Copay $20 / $30 (Primary / Specialist)
Emergency Room $150 (waive if admitted)
Rx $15 / $35 / $55 (Generic / Brand / Non formulary)
Active Employees Active Employees Pre-65 Retirees Pre-65 Retirees
HMO
Bi-Weekly PPO/POS
Bi-Weekly HMO
Monthly Rate PPO/POS Monthly Rate
Employee $51.05 $63.40 $154.84 $192.30
Employee + Spouse $96.19 $119.47 $333.46 $414.16
Employee + Children $89.42 $111.06 $310.00 $385.01
Family $113.07 $146.28 $391.97 $507.11
Goal: COST SHARING PLAN (Employee Share)
% of Plan Cost % of Plan Cost % of Active Employee Rate % of Active Employee Rate
Active Employees Active Employees Pre-65 Retirees Pre-65 Retirees
HMO PPO/POS HMO PPO/POS
Employee 25% 30% 140% 140%
Employee + Spouse 25% 30% 160% 160%
Employee + Children 25% 30% 160% 160%
Family 25% 30% 160% 160%
Introduced at a regular meeting of the Council of Columbus, Georgia,
held the 9th day of October, 2012 and adopted 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
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