Agenda Item # 4
Columbus Consolidated Government
Council Meeting
December 2, 2014
Agenda Report # 57
TO: Mayor and Councilors
SUBJECT: Hospital Authority-Muscogee Manor, Health Insurance
INITIATED BY: Human Resources and Finance Department
Recommendation: Approval is requested to discontinue health insurance coverage
for the Hospital Authority-Muscogee Manor including medical, dental and vision
coverage under the Columbus Consolidated Plan effective December 31, 2014.
Background: The Hospital Authority-Muscogee Manor has been on the Columbus
Consolidated Government?s self insured healthcare plan since the early years of
its inception, 1967.
? The Hospital Authority-Muscogee Manor?s initial workforce comprised
approximately 100 employees. Its workforce has now grown to more than 400 full
time insured employees and 300 part time employees. The additional employee
workforce increases the Hospital Authority?s liability above the premium rates
it currently pays.
? By taking this action now, the Hospital Authority-Muscogee Manor can begin
planning for its future, which may entail the addition of other assets and
employees, by managing its healthcare costs without the uncertainty of changes
and modifications made by the Columbus Consolidated Government.
? Other City Government related agencies with fewer employees such as Columbus
Water Works and the Columbus Convention and Visitors Bureau provide health
insurance for their employees separate from the Columbus Consolidated
Government.
? The Hospital Authority-Muscogee Manor employees pay lower premium rates and
deductibles than City Government employees. The Hospital Authority-Muscogee
Manor administration pays a greater share of the cost of healthcare for its
employees than City Government. City Government employees pay a larger percent
of their healthcare due to the City?s budget constraints.
? The Columbus Consolidated Government provides all of the administrative costs
associated with managing the healthcare plan; while the Authority bares none of
these costs.
Analysis: By allowing the Hospital Authority-Muscogee Manor to provide health
insurance coverage for its employees separate from the Columbus Consolidated
Government, this will allow the City to determine the true benefits of its
self-insured status without external liability exposure.
Financial Considerations: The City?s healthcare liability will be reduced by
the same number of Hospital Authority-Muscogee Manor employees that come off
the healthcare plan.
Legal Considerations: The Columbus Council must authorize taking the Hospital
Authority-Muscogee Manor off the City?s self-insured healthcare plan.
Recommendations/Actions: Approve a resolution authorizing the City to take the
Hospital Authority-Muscogee Manor off the City?s self-insured healthcare plan
effective December 31, 2014.
A RESOLUTION
NO. ____
WHEREAS, the Columbus Consolidated Government will discontinue providing health
insurance coverage for employees of the Hospital Authority-Muscogee Manor
effective December 31, 2014; and,
WHEREAS, due to the Hospital Authority-Muscogee Manor?s increase in their
assisted living facility assets and employees, this has increased the
healthcare fund?s overall liability; and,
WHEREAS, as healthcare costs continue to rise, excluding ancillary agencies
such as the Hospital Authority-Muscogee Manor is critical towards controlling
healthcare costs and limiting the City?s liability; and,
WHEREAS, the Columbus Consolidated Government must authorize discontinuing
healthcare coverage for the Hospital Authority-Muscogee Manor.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
That the City Manager and/or his designee are hereby authorized to discontinue
healthcare coverage for the Hospital Authority-Muscogee Manor effective
December 31, 2014.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
2nd day of December, 2014 and adopted by the affirmative vote of _________
members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Buck voting __________.
Councilor Davis 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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