O-2003-2617 - Laserfiche WebLink

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~UEST FOR CITY COUNCIL tGENDA ITEM Agenda Date Requested: Appropriation Requested By: Source of Funds: Employee Health Fund Department: Account Number: 014-6144-515-6012 Report: Resolution: Ordinance: x Amount Budgeted: $210,858.00 Exhibits: Ordinance Amount Requeded" $230,000.00 Budgeted Item: ~ NO Exhibit "A" Memorandum from The Welch Company Exhibit "8" Provider Distrihution Lid Exhibit "C" Current Contract - 2002-2003 SUMMARY & RECOMMENDATION Each year Council is asked to approve the City's Stop Loss medical insurance contract, which is due to renew this year on Aprill, 2003. This insurance would cover payment of all claims for an individual employee or dependent whose medical and prescription charges exceed $115,000.00 (deductible). The proposed contract includes an aggregate amount so that if all claims for all employees and dependents exceed at least $3.7 million (the anticipated attachment point), the insurance provider would cover 100% of all claims over that amount. On January 31 2003, Requests for Proposals (RFP's) were mailed to eleven (11) providers of Stop Loss coverage. On February 28, 2003, seven (7) RFP's were received and opened. Negotiations are still in progress with the incumbent provider, Standard Security Life Insurance Company of New York and another top offeror, Companion Life Insurance Company. Because there is a significant difference between both providers in at least two (2) categories (the annual premium for specific coverage and the attachment point), staff would like to make a final recommendation to Council at the Council meeting Monday night since coverage ends March 31, 2002. If the City selects both individual and aggregate coverage for the new contract year, the annual premium is expected to not exceed $230,000.00. Overall, the City has had a positive record with minimal claims loss exceeding the deductible and has been reimbursed $498,688.00 since fiscal year 200 I for claims paid. The new policy contract essentially will follow similar terms and conditions as the current contract with Standard Security Life Insurance Company of New York (Exhibit "C"). Staff Recommendation Staff will recommend that Council adopt an ordinance for the contract that offers the most benefit to the City at the most reasonable cost and authorize the City Manager to execute the final policy contract for April l, 2003 through March 31, 2004. Action Required bv Council: Adopt an ordinance for the policy contract that offers the most benefit to the City at the most reasonable cost and authorize the City Manager to execute the final policy contract for April I, 2003 through March 31, 2004. Approved for City Council Ae:enda J-/1-!J:2 Date