HomeMy WebLinkAbout2013-01-14 13-060 RESOLVECOUNCIL ACTION
Item No. 13-060
Date: January 14, 2013
Item/Subject: Resolve, Appropriating a $202,268 Rebate of Group Health Insurance
Premiums as a Result of the Patient Protection and Affordable Care Act
Responsible Department: Finance
Commentary:
The City of Bangor has received group health insurance rates from CIGNA Healthcare for
the plan year beginning January 1, 2013. The calendar year 2012 was difficult health -wise
for participants and an expensive year for our insurance plan, resulting in a projected rate
increase of 11.50% for 2013. The City has maintained a reserve of refunded premiums
with CIGNA to offset any potential small increases in a given budget year. However, due to
our 2012 claims experience it will be necessary to institute a premium increase effective
April 1, 2013.
The FY 2013 budget does not include this rate increase. However, in August 2012, as a
result of provisions under the Patient Protection and Affordable Care Act (Healthcare
Reform Act), CIGNA had provided the City with a rebate of group health insurance
premiums. The rebate was based on the most recent Medical Loss Ratio for CIGNA's large
insured groups on a statewide basis. As both the City and subscribers contribute to health
insurance premiums, the rebate was divided between the City and subscribers consistent
with the requirements set forth by the Act and Department of Health and Human Services
regulations. The City's share of this rebate was $202,268.
Therefore, this Resolve would appropriate the $202,268 to the various City departmental
budgets to pay the City's share of increased health insurance premiums from April 1, 2013
to June 30, 2013 and the balance will be deposited into the benefit reserve.
Department Head
Manager's Comments: This was reviewed and recommended for approval by the Finance
Committee on January 7, 2013.
City Manager
Associated Information: Resolve
Budget Approval:
Legal Approval:
Introduced for
Passage
X First Reading
Finance Director
—41� ,�
City Solicitor
Page _ of _
Assigned to Councilor Gallant
CITY OF BANGOR
13-060
JANUARY 14, 2013
(TITLE.) Resolve, Appropriating a $202,268 Rebate of Group Health Insurance Premiums as a
Result of the Patient Protection and Affordable Care Act
By the City Council of the City of Bangor.•
RESOLVED, THAT the City's share of the rebate of group health insurance premiums as a result
of the healthcare reform act is hereby appropriated as follows; General Fund operating budget
$70,501, Park Woods operating budget $71, Airport operating budget $15,696, Sewer Fund
operating budget $4,984, Bass Park operating budget $1,347, Parking Fund operating budget
$226, Golf Course operating budget $282 and the balance to the General Fund Benefit Reserve
account.
IN CITY COUNCIL
January 14, 2013
est Reading
CI LRRR
IN CITY COUNCIL
January_ 28, 2013
Motion wade and seconded for Passage
Passed -
6-�
CITY CWRK