TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action to Move Forward with Preliminary Plans for the Establishment and Funding of an Employee Heathcare Center Utilizing Funds From Budgeted Savings in the Amount of $1,124,773 for the Proposed Fiscal Year 2025 Budget.
Recommended Action
Discussion and possible action to move forward with preliminary plans for the establishment and funding of an Employee Heathcare Center utilizing funds from budgeted savings in the Amount of $1,124,773 for the proposed fiscal year 2025 budget.
Background Information
The Department of Human Resources is researching options for an Employee Healthcare Center. The following provides a chronological order of events regarding this initiative:
Ø July 9, 2018: During the City Commission Special Meeting, the City Commission approved the Self-Funded Program for renewal from Group Medical Insurance for FY 2019. Staff also advised the Commission they would be researching the following options:
ü On-Site/Near Site Clinics
ü Direct Primary Care opportunities
ü Charlotte County’s Clinic (Data collection, site visit and potential future partnership with the City of North Port).
Ø 2019 to 2024: The Risk and Benefits Division staff of the Department of Human Resources has been researching the three aforementioned options.
Ø June 12 & 20, 2024: Department of Human Resources staff conducted one-on-one meetings with the Mayor, Vice-Mayor, and Commissioners to discuss the option of pursuing an Employee Healthcare Center with budgeted savings in FY 25 due to insurance renewal rates coming in lower than projected.
Ø June 24, 2024: During the City Commission Budget Workshop, questions and discussion took place regarding requested direction and health care costs. At the conclusion of the discussion, there was a consensus by the Commission for the City to absorb the 1.3% in the self-funded health care costs at 100%.
Ø July 25, 2024: The City Commission Special Meeting has been scheduled to discuss pursuing an Employee Healthcare Center with the remaining amount of $1,124,773 that was budgeted for increases to the health plan for FY 2025.
The Department of Human Resources has invited Shawn Fleming, Senior Benefits Consultant of the Gehring Group, to conduct a presentation on the benefits of Employee Healthcare Centers. Gordon Burger, Director of Budget and Administrative Services of Charlotte County, will be speaking about the Employee Healthcare Centers that are in use for their employees. Financial information will be discussed at the meeting.
Funding in the amount of $1,124,773, is in the claims account which we anticipate will go back to fund balance at the end of Fiscal Year 2025.
Strategic Plan
Good Governance
Financial Impact
Not applicable.
Procurement
Not applicable.
Prepared by: Christine McDade, Human Resources Director
Department Director: Christine McDade, Human Resources Director