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File #: BL2021-781    Name:
Type: Bill (Ordinance) Status: Passed
File created: 5/28/2021 In control: Metropolitan Council
On agenda: 7/6/2021 Final action: 7/6/2021
Title: An ordinance amending Title 3 of the Metropolitan Code relative to medical care benefits for pensioners.
Sponsors: Kyonzte Toombs, Angie Henderson
title
An ordinance amending Title 3 of the Metropolitan Code relative to medical care benefits for pensioners.

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WHEREAS, the Council of the Metropolitan Government of Nashville and Davidson County has adopted a system of employee benefits which includes medical care benefits for employees and pensioners; and,

WHEREAS, the Study and Formulating Committee has issued a Final Report dated February 17, 2021, recommending that the following changes be made to medical care benefits for pensioners: (i) offer pensioners a Group Medicare Advantage plan as their only option; pensioners and their dependents must be Medicare eligible; and (ii) remove the Employer Group Waiver Plan language from the Metropolitan Code; and,

WHEREAS, based on current rates, it is estimated that offering eligible pensioners a Group Medicare Advantage plan as their only option would result in the realization of Other Post-Employment Benefits ("OPEB") liability reduction of $1.1 billion; and,

WHEREAS, based on current rates, it is estimated that offering eligible pensioners a Group Medicare Advantage plan as their only option would also result in annual cash savings to the Metropolitan Government of $14-21 million in the initial year; and,

WHEREAS, at its May 4, 2021 meeting, the Metropolitan Employee Benefit Board: (i) approved the recommendation of the Study and Formulating Committee to make Medicare Advantage plan the only choice for health insurance offered by the Metropolitan Government to pensioners with Medicare and whose covered dependents also have Medicare, effective January 1, 2023; and (ii) requested that within three years of implementation, the Benefit Board be provided an evaluation of how the Medicare Advantage plan is operating, as well as an update on the reduction of the OPEB liability; and,

WHEREAS, offering eligible pensioners a Group Medicare Advantage plan as their only option will render obsolete the requirement in the Metropolitan Code that the Benefit Board imp...

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