Agenda Item # 1
Columbus Consolidated Government
Council Meeting
September 26, 2017
Agenda Report # 30
TO: Mayor and Councilors
SUBJECT: Retiree Health Insurance Plan
INITIATED BY: Human Resources Department
Recommendation: Approval is requested authorizing the renewal of the Medicare
eligible healthcare plan benefits and the United Healthcare Medicare Advantage
plan.
Background: In October 2007 Council authorized implementation of a Medicare
Advantage plan and established a cost sharing formula whereby the City pays 25%
of the fully insured health plan premium (Ord. No. 07-70) for employees hired
prior to July 1, 2001. All retirees who are Medicare eligible and were hired
on or after July 1, 2001 are not eligible for the 25% City subsidy (Ord. No.
14-25). Since 2012 the Retiree Benefits Committee has approved United
Healthcare as the carrier for the Medicare Advantage Plan because of the
favorable plan design and minimum premium increases.
City Council authorized a contract with United Healthcare for the retiree
Medicare Advantage Plan (Res. No. 284-12). The negotiated Medicare Advantage
plan renewal with UHC for calendar year 2018 includes a 3.9% premium increase
over calendar year 2017. The Retiree Benefits Committee, ShawHankins Benefits
Consulting, and the Human Resources Department recommends accepting the renewal
with United Healthcare.
Analysis: Two vendors made bids for coverage, Aetna Insurance and United
Healthcare. Although Aetna?s bid was competitive, because of the strong
renewal submitted by United Healthcare, excellent customer service, and plan
offering, the Retiree Benefits Committee was unanimous in their decision to
remain with United Healthcare. The post-65 retiree health insurance costs will
increase by 3.9% in 2018. The retiree?s monthly rate will be $145.50 a month
for the City subsidized retiree group (hired prior to July 1, 2001) and $194.00
for the unsubsidized retiree group (hired on or after July 1, 2001). The out
of pocket maximum of $1,500 annually will remain the same.
Financial Considerations: The renewal rate will increase by 3.9% thereby
slightly increasing the City?s contribution for CY2018.
Legal Considerations: The Council must authorize changes to the health plan.
Recommendations/Actions: The Retiree Health Benefits Committee, the benefits
consultant and the Human Resources Director recommend the proposed resolution.
A RESOLUTION
NO. ____
A RESOLUTION AUTHORIZING RENEWAL OF THE MEDICARE ELIGIBLE HEALTH PLAN BENEFITS
AND THE UNITED HEALTHCARE MEDICARE ADVANTAGE PPO PLAN.
WHEREAS, United Healthcare has offered the City a renewal of the Medicare
Advantage PPO plan with a 3.9% increase to premium costs, and no change to the
plan design for CY2018; and,
WHEREAS, the monthly premium rate will increase to $145.50 for the City
subsidized retiree group and $194.00 for the unsubsidized retiree group. The
out of pocket maximum of $1,500 annually will remain the same; and,
WHEREAS, the Columbus Council must authorize implementation of the recommended
plan renewal.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES AS FOLLOWS:
Section I.
That the Human Resources Director is authorized to renew the existing Medicare
Advantage PPO contract with United Healthcare. The renewal will become
effective January 1, 2018.
_____________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
_________ day of _____________, 2017 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 Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
Attachments
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