Agenda Item # 1
Columbus Consolidated Government
Council Meeting

September 13, 2016

Agenda Report # 34

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 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.

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 Columbus Consolidated Government must authorize implementation of the recommended plan design changes and premium rates; and,

WHEREAS, this Council adopted Ordinance No. 16-17 which set the following Health Care Plan Design and employee contributions for the 2017 calendar year:



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
Health Insurance Premium Rates – Effective January 1, 2017
Active Employees Contributions at 30%
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

Health Insurance Premium Rates – Effective January 1, 2017
Pre-65 Retiree Contributions at 50% Retiree, 20% Dependents
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:

For 2017 will only apply to employees, not spouses. Applies to both Silver and Gold Plans.
___________________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the 13th day of September, 2016 and adopted 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 Turner-Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.




_________________________________ ___________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor