Recommendation: Approval is requested of a resolution confirming rate changes for Health Insurance for Active employees and Pre-65 Retirees, modifications to the plan benefits, and approving a Wellness Incentive Option.

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 City’s contribution increased from $5,650 in FY16 to $6,100 in FY17 per budgeted position totaling $1.2 million. Council approved a contribution strategy of 70% Employer and 30% Employee. Over the last several years, the City has made up the deficit at year end which equates to approximately 83%/17% contribution split. In accordance with these guidelines, Ordinance No. 16-17, passed by Council June 14, 2016, approved Health Insurance rate changes for calendar year 2017 for Active employees and Pre-65 Retirees and made modifications to the plan benefits including access to the Wellness Center under all plans. Approval is now sought to provide a Wellness Incentive Option.

Financial Considerations: The projected reimbursements to be paid as a part of the wellness incentive are $234,372 annually. The participation in the program is in direct correlation to the return on investment (ROI) which is expected to be a 3:1 ratio by year 3.

Legal Considerations: The Columbus Council must authorize any rate changes and plan modifications and financial incentives made to the self-insured Health Insurance program.

Recommendations/Actions: Approve a resolution authorizing a Wellness Incentive Option as part of the previously approved Health Insurance rates and benefit changes approved by Ordinance 16-17.

2017		Health Care Plan Design
Benefit Design		Silver Plan Open Access POS	Gold Plan Open Access POS
Deductible (Single/Family)		$2,000/$4,000	$1,000/$2,000
Coinsurance		80%	90%
Global out-of-pocket		$6,350/$12,700	$6,350/$12,700
Medical copayments
HWC office visits		$0	$0
PCP office visits		$30	$20
SP office visits		$40	$30
Emergency Room		$200	$150
Prescription drug (Retail/Mail Order)
Available at HWC		$0	$0
Tier 1		$20/$40	$20/$40
Tier 2		$40/$80	$40/$80
Tier 3		$60/$120	$60/$120

	Silver Plan Biweekly		Gold Plan Biweekly
Employee	$73.03		$104.65
Employee +Spouse	$137.29		$196.74
Employee + Child(ren)	$127.82		$183.16
Employee + Family	$202.31		$289.90

	Silver Plan Monthly		Gold Plan Monthly
Employee	$263.72		$332.23
Employee +Spouse	$793.26		$922.06
Employee + Child(ren)	$738.53		$858.42
Employee + Family	$1,168.90		$1,358.67

Health and Wellness Center is available to all employees enrolled in the Silver or Gold plan. No cost for services or prescriptions at HWC.

Effective with the plan year beginning January 1, 2017, any “working spouse” shall be eligible for coverage in the Columbus Consolidated Government Employee/Retiree Self-Funded Medical Benefit Plan conditioned upon payment of a monthly/biweekly surcharge of $356.98/$164.76. Working spouse shall mean spouses of employees and non-Medicare retirees who have access to health care coverage provided by their employer; and,

WHEREAS, Council wishes to include a Wellness Incentive Option in as a part of the Health Benefit Plan described above;

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:

That a Wellness Incentive Option is adopted that includes the following Health Reimbursement Account (HRA) Credits for compliance:

· Participants receive $500 HRA credit for compliance
o $100 for Health Risk Assessment

o $200 for Biometric Screening

o $200 for Coaching if High Risk, Automatically Received if not High Risk

o Used to offset deductible