Agenda Item # 1
Columbus Consolidated Government
Council Meeting
September 27, 2016
Agenda Report # 43

TO: Mayor and Councilors

SUBJECT: Retiree Health Insurance Plan

INITIATED BY: Human Resources Department

Recommendation: Approval is requested authorizing 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). There is no recommended change in Medicare Advantage plan provider for the retirees for calendar year 2017 and the Retiree Benefits Committee, ShawHankins Benefits Consulting, and the Human Resources Department recommends remaining with United Healthcare.

Analysis: Two vendors made bids for coverage, Aetna Insurance and United Healthcare. Humana and BCBSGA declined to provide a quote due to uncompetitive rates. 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 remain flat in 2017. This means retirees will not pay anymore for health insurance coverage in 2017. The retiree’s monthly rate will remain at $140.03 a month for the City subsidized retiree group (hired prior to July 1, 2001) and $186.70 for the unsubsidized retiree group (hired on or after July 1, 2001). The out of pocket maximum of $,1500 annually will remain the same.

Financial Considerations: A flat renewal rate for the plan means the cost to the City will remain the same as in CY2016.

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 flat renewal Medicare Advantage PPO plan with no increase to premium costs, and no change to the plan design for CY2017; and,

WHEREAS, the monthly premium rate will remain at $140.03 for the City subsidized retiree group and $186.70 for the unsubsidized retiree group. The out of pocket maximum of $,1500 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, 2017.
_______________________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the 27th day of September, 2016 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 Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.


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