Agenda Item #
Columbus Consolidated Government
Council Meeting
Septmber __, 2012
Agenda Report #
TO: Mayor and Council
SUBJECT: Retiree Insurance Plan
INITIATED: Human Resources Department
Recommendation: Approve a resolution authorizing a contract with United Health
Care for the retiree Medicare Advantage health plan.
Background: In October 2007 Council authorized implementation of a Medicare
Advantage plan and established the cost sharing formula whereby the City pays
25% of the fully insured health plan premium (Ord. No. 07-70). Blue Cross Blue
Shield of Georgia was the initial carrier effective January 1, 2008 and has
received renewal contracts every year thereafter. During this 5-year period,
premiums have increased substantially every year and sometimes resulted in
difficult negotiations to maintain an affordable premium for retirees. This
year was not an exception with BCBS initially requesting a 14% rate increase
then negotiating a .5% rate decrease. As part of their due diligence
Northwestern was able to secure a competing quote from United Health Care that
matched the BCBS benefits, plus some enhancements and provided a 12.57% premium
reduction.
The Retiree Health Benefits Committee evaluated all proposals for the 2013 plan
year and voted to recommend to the Columbus Counsel changing the retiree health
plan to United Health Care. The Committee presented their decision at the last
meeting of the Retired City Employee Association on September 13. The members
asked questions and expressed no objection to the change of carrier.
Analysis: The proposal from United Health Care is projected by Northwestern to
save the CCG and retirees a combined total of $194,319 for the 2013 plan year.
Individually, the change to United will save each retiree $18 per month in
premiums or $216 for the full year. The United Health Care proposal must be
approved by Council at the September 25 meeting to allow time for the change of
carrier due to Medicare compliance requirements.
Financial Considerations: The proposed change will provide annual premium
savings of $48,580 to the City.
Projected Annual Fiscal Impact Statement: The January 1, 2013 Medicare
Advantage renewal policy offered by United Health Care has a total annual
premium reduction of $194,319 for the 675 plan members, compared to the cost
for 2011. The City share of the savings is $48,580. The total projected
annual premium is $1.351 million with the City share $337,851.
Legal: The Council must authorize changes to the health plan.
Recommendation/Actions: The Retiree Health Benefits Committee and the Human
Resources Director recommend the proposed resolution.
A RESOLUTION
NO.________
A RESOLUTION AUTHORIZING A ONE-YEAR CONTRACT WITH UNITED HEALTH CARE FOR THE
RETIREE MEDICARE ADVANTAGE PLAN.
WHEREAS, the City entered into a one-year contract with Blue Cross Blue Shield
of Georgia effective January 1, 2012, that will expire on December 31, 2012;
and,
WHEREAS, the Retirees? Health Benefits Committee recommends a new contract with
United Health Care for the 2013 plan year; and,
WHEREAS, the Columbus Council must authorize the recommended contract.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is authorized to contract with United Health Care
for provision of the retiree?s Medicare Advantage plan for the plan year
beginning on January 1, 2013.
______________________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of ____________, 2012 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 , Mayor
Attachments
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