Title
Consider approving Resolution No. 2016-119 authorizing the City Manager to negotiate and execute a contract for medical stop-loss insurance coverage; and take appropriate action.
Body
BACKGROUND:
Stop-loss insurance is a product that provides protection against catastrophic or unpredictable losses. It is purchased by employers who have decided to self-fund their employee benefit plans, but do not want to assume 100% of the liability for losses arising from the plans. Under a stop-loss policy, the insurance company becomes liable for losses that exceed certain limits called deductibles.
The City has partnered with Munich Re. this past year as its stop-loss carrier. Current covered benefits are medical and prescription drugs for employees and retirees. The annual aggregate attachment factor is $3.8 million down from 4.4 million with a specific deductable of $125,000.
DISCUSSION:
In October, City Administration will be reviewing proposals for stop-loss insurance coverage for an effective date of January 1, 2017. The cost for this coverage is $340,000. The current cost is $369,000.
RECOMMENDATION:
City Administration recommends authorizing the City Manager to execute a contract for stop-loss insurance coverage.
ACTIONS:
1) Motion to approve Resolution No. 2016-119 authorizing the City Manager to negotiate and execute a contract for stop-loss insurance coverage, as presented.
2) Motion to deny Resolution No. 2016-119 authorizing the City Manager to negotiate and execute a contract for stop-loss insurance coverage.
3) Motion to table the issue for further study or take no action.
ATTACHMENTS:
1. Resolution No. 2016-119
2. Health Analysis