minfin 12-06-21 - Laserfiche WebLink

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Director Dillinger reviewed information regarding the city's health insurance policy. The city has been with Medical Mutual for quite some time, however employees out of network can use Aetna network providers if they are out of town or country. The city's healthcare fund is currently running at 85% of expected funding, which is above average. The city did see a dip in medical costs over the past year due to Covid cancelling elective procedures, which led to a total of$8.4 million in medical costs. The city uses Gallagher Co. to consult on health insurance matters, and their contract is included in the $8.4 million figure. Ms. Dillinger reviewed several initiatives designed to make care more cost effective such as the UpShot Health Clinic, Cleveland Clinic Express' Telehealth Line, and a magnet information campaign that provided information to employees on where they could get the cheapest care. Director Dillinger spoke to the status of the 2022 Hospitalization Fund. The majority of the money in the fund goes towards professional services. As an example, the city provides in depth physicals for firefighters, who have higher risks of cancers and chronic diseases, in order to prevent medical issues from becoming serious and keeps costs to the fund down. There was a 16% increase in hospitalization costs, which is below the normal figure of 30%. Information regarding updates to the salary ordinance was reviewed. The salary bands for non- union employees were given a 2.5% cost of living adjustment, which is similar to 1 of the 3 years bands in union contracts. Also, 3 city planner positions job descriptions and titles were presented to civil service and were approved. The HR department would also like to establish a neighborhood engagement position to creative positive relationships with residents throughout the city, especially in its parks. Councilmember O'Malley indicated that the cost-of-living adjustment seems consistent with what unions have negotiated and asked whether non-union employees have step increases automatically. Director Dillinger noted that they do not, however directors review employee performance and can award salary increases or employees can initiate negotiations on their own. Discussion then ensued regarding interfund transactions with the city's hospitalization fund. It was noted that each fund pays a portion into the hospitalization fund every year. Finance department staff indicated that this method hasn't been a great way to fund healthcare throughout the years, so whenever the city has excess money, it is put into the hospitalization fund. Councilmember Shachner questioned the 182% increase in professional services in the hospitalization fund. Administration members indicated that the cost of the annual firefighter physical was placed in another line item previously, which caused the change to be reflected with a high percentage. Motion by Councilmember Shachner, seconded by Chairman Bullock to recommend Ordinance 51-2021 for adoption. All in favor. Motion passed. Ordinance 51-2021 was recommended for adoption. 2