Agenda Item # 3
Columbus Consolidated Government
Council Meeting
August 28, 2018
Agenda Report # 20

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 2019 and the Retiree Benefits Committee, ShawHankins Benefits Consulting, and the Human Resources Department recommends remaining with United Healthcare.

Analysis: United Healthcare presented another strong bid for coverage in CY2019. Their final bid resulted in a premium reduction or 10.7% and lower Out-of-Pocket Maximum by $500. The retiree’s monthly rate will be $130.00 a month for the City subsidized retiree group (hired prior to July 1, 2001) and $173.33 for the unsubsidized retiree group (hired on or after July 1, 2001). The out of pocket maximum of $1,500 annually is reduced to $1,000 annually. It is noted that the Medicare Advantage Plan was put out to bid and BCBS submitted a strong proposal. Because of United Healthcare’s competitive bid, excellent customer service, and stable consistency; it was determined to remain with UHC.

Financial Considerations: A reduction in the monthly premium will result in a slightly reduced cost to the City in CY2019.

Legal Considerations: The Council must authorize changes to the health plan.

Recommendations/Actions: The Retiree Health Benefits Committee, ShawHankins Benefits Consultants, 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 reduced renewal of the Medicare Advantage PPO plan that resulted in a 10.7% reduced premium rate and a reduced Out-of-Pocket Maximum; and,

WHEREAS, the monthly premium rate is $130.00 for the City subsidized retiree group and $173.33 for the unsubsidized retiree group. The out of pocket maximum is $1,000 annually for CY2019; 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, 2019.
________________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the 28th day of August 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 House voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.

_________________________________ __________________________
Lindsey Glisson, Deputy Clerk of Council Teresa Pike Tomlinson, Mayor