Agenda Item #1
Columbus Consolidated Government

Council Meeting

December 3, 2013

Agenda Report # 53

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 authorizing rate changes for Health Insurance for Active employees and Pre-65 Retirees and modifications to the plan benefits. Approval is also requested to move tobacco users to the same preferred premium rate as non-tobacco users.

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.

In order to satisfy the 2014 healthcare requirement under the Affordable Care Act, the CCG must provide a reasonable alternative standard for tobacco users. The same full reward must be available under a health-contingent wellness program to individuals who qualify by satisfying a reasonable alternative standard as provided to individuals who qualify by satisfying the program’s otherwise applicable standard. In other words, this requirement provides an opportunity for tobacco users to pay the same health care preferred premium rates as non-tobacco users. The goal of this new requirement is to ensure tobacco users are not discriminated against and are treated similarly as non-tobacco users regarding their healthcare.

Analysis: The shortfall to the Health Insurance Fund is estimated to be $2 million based on the expected costs provided by Northwestern Benefit Corporation of Georgia, our benefits consultant.

Financial Considerations: The Health Insurance Fund is an Internal Service Fund and must be balanced each year.

Projected Annual Fiscal Impact: The expected impact from the plan modifications is $1 million. The impact of the premium rate changes is estimated to be $0.6 million.

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

Recommendations/Actions: Approve a resolution authorizing the rate changes for Health Insurance for Active employees and Pre-65 Retirees, and modifications to the plan benefits. Approve tobacco users’ premium rate change to the same as preferred premium rate for non-tobacco users.



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 2014 healthcare requirement under the Affordable Care Act requires that the CCG must provide a reasonable alternative standard for tobacco users and they must be treated similarly as non-tobacco users regarding their healthcare.

WHEREAS, the Columbus Consolidated Government must authorize implementation of the recommended changes and options.

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

That the City Manager and/or his designee are hereby authorized to implement the following changes to the plan benefits, adjust the employee and pre-65 retiree premium rates effective April 1, 2014. Tobacco users’ premium rate changes to preferred rate effective January 1, 2014.



Active Employees
HMO Preferred Rate Monthly
*Health and Wellness Center Preferred Rate
Monthly
POS/PPO Preferred Rate
Monthly
Employee
$92.80
$91.00
$98.87
Employee + Spouse
$227.20
$195.00
$234.91
Employee + Child(ren)
$211.15
$208.00
$218.38
Family
$286.73
$221.00
$297.56
*No Changes to the Health and Wellness Center Plan




Pre-65 Retirees
HMO Preferred Rate Monthly
Pre-65 Retirees
Health and Wellness Center Preferred Rate
Monthly
Pre-65 Retirees POS/PPO Preferred Rate
Monthly
Employee
$164.54
$129.30
$171.94
Employee + Spouse
$310.06
$315.50
$324.02
Employee + Child(ren)
$288.24
$338.90
$301.22
Family
$455.57
$362.30
$476.09


Introduced at a regular meeting of the Council of Columbus, Georgia, held the 3rd day of December, 2013 and adopted by the affirmative vote of _________ members of said Council.


Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.



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