Agenda Item #1
Columbus Consolidated Government
Council Meeting
December 3, 2013
Agenda Report # 53
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 authorizing rate changes
for Health Insurance for Active employees and Pre-65 Retirees and modifications
to the plan benefits. Approval is also requested to move tobacco users to the
same preferred premium rate as non-tobacco users.
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.
In order to satisfy the 2014 healthcare requirement under the Affordable Care
Act, the CCG must provide a reasonable alternative standard for tobacco users.
The same full reward must be available under a health-contingent wellness
program to individuals who qualify by satisfying a reasonable alternative
standard as provided to individuals who qualify by satisfying the program?s
otherwise applicable standard. In other words, this requirement provides an
opportunity for tobacco users to pay the same health care preferred premium
rates as non-tobacco users. The goal of this new requirement is to ensure
tobacco users are not discriminated against and are treated similarly as
non-tobacco users regarding their healthcare.
Analysis: The shortfall to the Health Insurance Fund is estimated to be $2
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 million. The impact of the premium rate changes is estimated to be $0.6
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, and modifications to
the plan benefits. Approve tobacco users? premium rate change to the same as
preferred premium rate for non-tobacco users.
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 2014 healthcare requirement under the Affordable Care Act
requires that the CCG must provide a reasonable alternative standard for
tobacco users and they must be treated similarly as non-tobacco users regarding
their healthcare.
WHEREAS, the Columbus Consolidated Government 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 following changes to the plan benefits, adjust the employee and
pre-65 retiree premium rates effective April 1, 2014. Tobacco users? premium
rate changes to preferred rate effective January 1, 2014.
Active Employees
HMO Preferred Rate Monthly *Health and Wellness Center Preferred Rate
Monthly POS/PPO Preferred Rate
Monthly
Employee $92.80 $91.00 $98.87
Employee + Spouse $227.20 $195.00 $234.91
Employee + Child(ren) $211.15 $208.00 $218.38
Family $286.73 $221.00 $297.56
*No Changes to the Health and Wellness Center Plan
Pre-65 Retirees
HMO Preferred Rate Monthly Pre-65 Retirees
Health and Wellness Center Preferred Rate
Monthly Pre-65 Retirees POS/PPO Preferred Rate
Monthly
Employee $164.54 $129.30 $171.94
Employee + Spouse $310.06 $315.50 $324.02
Employee + Child(ren) $288.24 $338.90 $301.22
Family $455.57 $362.30 $476.09
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
3rd day of December, 2013 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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