Title
Consider approval of renewing with Liberty Mutual Insurance Company through SA Benefit Services for medical stop loss insurance, in the amount of $462,479.00, as budgeted in the Self-funded Health Fund; and authorizing the City Manager to sign any necessary documents.
Summary
This item is presented to consider approval of a contract for Medical Stop Loss Insurance to Liberty Mutual Insurance Company through SA Benefit Services. The City's medical and prescription drug plans are partially self-funded. To mitigate the cost of large insurance claims costs and the potential for catastrophically large claims to the plan, the City purchases Specific and Aggregate Stop Loss Insurance. The City is currently insured by Liberty Mutual through SA Benefits.
Following a formal Request for Proposals process and with over 20 stop loss insurance vendors receiving the City's claims information for quoting purposes, the finalists were narrowed to two. Liberty Mutual initially presented a slight reduction to rates, however, there was no protection against new laser or rate caps in the contract for the following plan year. The City's benefits consultant, HUB International, Inc. requested protections be included. The renewal with Liberty Mutual includes a "no new laser" provision and a rate cap for the following plan year of 50%.
Fiscal Impact:
The premium cost for renewing with Liberty Mutual for stop loss insurance for the 2024-2025 benefit plan year will be $462,479. This represents and increase of $20,124, or 3.2% There are no new lasers on specific high claimants and the aggregate factors for the insurance coverage at a rate pass. This is budgeted in the Self-funded Health Fund.
Staff Recommendation:
Staff recommends approval of renewing with Liberty Mutual Insurance Company through SA Benefit Services for medical stop loss insurance, in the amount of $462,479, as budgeted in the Self-funded Health Fund; and authorizing the City Manager to sign.
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