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Record of Proceedings

Cleveland City Council Committee Considers COBRA and FMLA Benefits Contracts (2026-09-17)

City Council Meetings — Thursday, September 17, 2026
BodyCleveland, Ohio
SessionCity Council Meetings
DateThursday, September 17, 2026
StatusFILED
Video Record
0:00 / 33:34

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it
0:05

Pretty good, pretty good.

0:07

Are you by yourself today?

0:08

No, I have I have a little little crew in the do you want them to come at the table?

0:15

Would you like them per piece or together?

0:17

Um together so we can roll it out, and as they go through those different ordinances, we can definitely obviously they can leave and things from that nature.

0:27

Yep.

0:28

Yep, because we'd like to know who here.

0:33

Yes.

0:33

Quick motion.

0:34

Are you okay?

0:35

Uh sorry, folks.

0:37

What'd you say?

0:38

Are you okay?

0:44

I feel like I'm gonna feel like I'm gonna kids here.

0:48

Maybe I'm just shrinking.

1:11

Right.

1:13

Um, so first piece we will definitely hear will be orders number 466 2026 and emergency ordinance authorizing the director of human resources to employ one or more professional consultants to administer the city's Cobra program for a one-year period with two one-year options to renew, exercisable by the director of human research.

1:39

Director, before you go into this, can you introduce everyone from your team that's here?

1:42

Sure.

1:43

Thank you, Chairman.

1:44

And uh committee to my left is Trisha Simon Webster, she is the benefits manager for the city.

1:50

To my immediate right is Patrick Lang.

1:52

He's uh the talent management coordinator for the city.

1:56

To his right is Kelly Smith, she's the wellness manager for the city.

2:01

And to her right is Monique Young, and she is the employee relations manager for the city.

2:07

Uh right, so I need to oh I didn't and some sorry I didn't see Angela come up.

2:14

That's Angela Tagler Ferry.

2:16

She is our fiscal manager for the HR department.

2:19

Uh right.

2:20

So with this ordinance, can you tell us uh can you go ahead and present?

2:24

Uh sure, Chairman, thank you.

2:26

Um this piece is requesting authorization to enter into a professional services contract with a vendor for the administration of our COBRA program.

2:35

Um they maintain our employer provided health insurance during situations such as job loss reduction in hours uh for a period of up to three years or 36 months.

2:46

Uh it falls under Cobra falls under uh IRS rule uh uh 125 related health care benefit can of cafeteria plans.

2:56

Um basically we offer employees um the plans that that they would be able to be enrolled in as as regular employees.

3:04

Um it it does fall under federal law, so this is something that we have to offer employees uh uh during those before mentioned uh uh situations.

3:15

Um just for a little bit of context in terms of numbers so far this year, we've had 785 uh termed employees in which would have been Cobra eligible, of which uh 203 selected, and uh we have 62 that are currently enrolled in Cobra.

3:34

Um the vendor handles everything and anything related to Cobra once we notify them of of the uh change.

3:43

Um and just for for clarification too, for the amount, it is up to 499, but it's actually um uh a dollar forty-five per employee per month that is utilized in Cobra.

3:56

So it's not a uh guaranteed amount.

3:59

Um we did have an amendment that came through to request it for one year with three one year renewals.

4:06

Uh and the reason being is because it ties uh the same vendor handles our uh FSA uh program and um that's what the the term is uh with with uh with wax for that program as well, one year or three one year renewals.

4:21

Um we're recommending approval, of course.

4:23

Happy to answer any questions, uh either Trisha or I.

4:27

Thank you, Director.

4:28

So from the standpoint of 466 revolving um the Cobra.

4:36

Do you have an executive summary?

4:39

Uh to the chair, yes.

4:41

We submitted an executive summary originally.

4:49

It was submitted on uh April the 15th.

4:55

Okay, and from that standpoint, do you have okay?

5:03

This is a very short summary, and that's it.

5:06

It is not anything else other than you enter into professional contract with Cobra, and that's so our current vendor is Fax Health, and we're looking to uh request a mic.

5:24

I just to the chair.

5:27

There you go.

5:29

Uh to the chair, um, we are requesting that we continue services with Wax there, current provider, and we're just looking to renew the contract effective one one 2027.

5:40

Okay, so there's not another um software contract.

5:46

I know we did like 10 million in the past.

5:48

Is it the same thing or no?

5:51

No, uh to the chair.

Discussion Breakdown — Share of Meeting
Personnel Matters█████████████████████████████████████████████69%
Procurement████████████19%
Public Health Awareness██████9%
Budget Equity Analysis██3%
Summary of Proceedings

Cleveland City Council Committee Considers COBRA and FMLA Benefits Contracts

Cleveland City Council's committee convened on September 17, 2026, to consider two emergency ordinances authorizing the Director of Human Resources to contract out administration of the city's federally required COBRA and FMLA benefit programs. The COBRA ordinance passed as amended; the FMLA contract discussion focused on data collection, outsourcing concerns, and a possible future paid family and medical leave ordinance.

Discussion Items

COBRA Administration — Order No. 466-2026

  • The Director presented the request to contract with a vendor (Wax Health, transcribed as "Fax Health") for COBRA administration, which the city must offer when employees separate or drop below the Affordable Care Act's average 30-hour-per-week threshold.
  • Year-to-date figures: 785 termed employees were COBRA-eligible; 203 selected coverage; 62 are currently enrolled.
  • Contract cost: $1.45 per enrolled employee per month, not to exceed $49,999 per year, paid from fund number 70 SF200 (as amended).
  • Council adopted an amendment striking "two one year" and inserting "three one year" in the title and section one, aligning the term with the vendor's FSA program contract.
  • The Director said the third-party service is industry standard and cost-effective versus hiring full-time staff to do the work.

FMLA Administration Contract

  • The Director requested authorization for third-party FMLA administration; the city recently issued an RFP so the program would not lapse. A council member asked what the city currently pays Sedgwick under the existing contract.
  • As of May 2025, the FMLA program was consolidated citywide under third-party administration; previously, most FMLA processing was done internally by staff such as leave coordinator Michelle Parker and Ms. Young, who also handle other employee-relations duties.
  • A council member expressed concern that outsourcing "skills and expertise" and letting outside contractors make eligibility decisions would lead to employee denials with limited recourse. The Director responded that most denials happen because employees exhaust their FMLA leave, and the denial rate is "very low."
  • A council member requested FMLA data broken down by department, duration, and leave category (self, caregiver, etc.) to assess the impact on city services and inform potential paid family and medical leave legislation. The Director confirmed a full year of centralized data (since May 2025) is available for that analysis.
  • The chair requested complaint data on delays, incorrect leave balances, and missing paperwork; the Director committed to providing a full breakdown to council.

Key Outcomes

  • Order No. 466-2026 passed as amended: one-year COBRA contract with three one-year renewal options; $49,999 annual cap paid from fund 70 SF200.
  • Council requested, and the Director committed to, FMLA usage, complaint, and denial data broken out by department, duration, and leave type.
  • No vote on the FMLA contract is recorded in the available transcript excerpt; council planned to revisit the paid family and medical leave discussion once the consolidated FMLA data is analyzed.

Meeting Transcript

Pretty good, pretty good. Are you by yourself today? No, I have I have a little little crew in the do you want them to come at the table? Would you like them per piece or together? Um together so we can roll it out, and as they go through those different ordinances, we can definitely obviously they can leave and things from that nature. Yep. Yep, because we'd like to know who here. Yes. Quick motion. Are you okay? Uh sorry, folks. What'd you say? Are you okay? I feel like I'm gonna feel like I'm gonna kids here. Maybe I'm just shrinking. Right. Um, so first piece we will definitely hear will be orders number 466 2026 and emergency ordinance authorizing the director of human resources to employ one or more professional consultants to administer the city's Cobra program for a one-year period with two one-year options to renew, exercisable by the director of human research. Director, before you go into this, can you introduce everyone from your team that's here? Sure. Thank you, Chairman. And uh committee to my left is Trisha Simon Webster, she is the benefits manager for the city. To my immediate right is Patrick Lang. He's uh the talent management coordinator for the city. To his right is Kelly Smith, she's the wellness manager for the city. And to her right is Monique Young, and she is the employee relations manager for the city. Uh right, so I need to oh I didn't and some sorry I didn't see Angela come up. That's Angela Tagler Ferry. She is our fiscal manager for the HR department. Uh right. So with this ordinance, can you tell us uh can you go ahead and present? Uh sure, Chairman, thank you. Um this piece is requesting authorization to enter into a professional services contract with a vendor for the administration of our COBRA program. Um they maintain our employer provided health insurance during situations such as job loss reduction in hours uh for a period of up to three years or 36 months. Uh it falls under Cobra falls under uh IRS rule uh uh 125 related health care benefit can of cafeteria plans. Um basically we offer employees um the plans that that they would be able to be enrolled in as as regular employees. Um it it does fall under federal law, so this is something that we have to offer employees uh uh during those before mentioned uh uh situations. Um just for a little bit of context in terms of numbers so far this year, we've had 785 uh termed employees in which would have been Cobra eligible, of which uh 203 selected, and uh we have 62 that are currently enrolled in Cobra. Um the vendor handles everything and anything related to Cobra once we notify them of of the uh change. Um and just for for clarification too, for the amount, it is up to 499, but it's actually um uh a dollar forty-five per employee per month that is utilized in Cobra. So it's not a uh guaranteed amount. Um we did have an amendment that came through to request it for one year with three one year renewals. Uh and the reason being is because it ties uh the same vendor handles our uh FSA uh program and um that's what the the term is uh with with uh with wax for that program as well, one year or three one year renewals. Um we're recommending approval, of course. Happy to answer any questions, uh either Trisha or I. Thank you, Director. So from the standpoint of 466 revolving um the Cobra. Do you have an executive summary? Uh to the chair, yes. We submitted an executive summary originally. It was submitted on uh April the 15th.

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