O-2002-2546 - Laserfiche WebLink

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: I~ ~h 18./2002 Requested By: Carol Buttler ~ Department: A.dmiDiitrative Servicei Appropriation Source of Funds: Employee Health Fund Account Number: 014-6144-515-6012 Report: Resolution: Ordinance: x Amount Budgeted: $178.000.00 Exhibits: Ordinance Amount Requested: $200.827.00 Exhibits: Memorandum from The Welch Company Budgeted Item: YES NO Exhibits: Provider Distribution List SUMMARY & RECOMMENDATION Each year Council is asked to approve the City's Stop Loss insurance contract, which is due to renew on April 1, 2002. 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 $3.59 million (the anticipated attachment point), the insurance provider would cover 100% of all claims over that amount. On January 23, 2002, Requests for Proposals (RFP's) were mailed to nine (9) providers of Stop Loss coverage. On February 21, 2002, four (4) RFP's were received and opened. Houston Casualty Corporation (HCC), the City's current provider did not submit a proposal by the required deadline. Standard Security Life Insurance Company was selected as the most responsive offeror of Stop Loss coverage. This provider proposes an annual premium $178,572.00 to cover individuals whose claims exceed $115,000.00 and $22,256.00 for aggregate coverage. If the City selects both individual and aggregate coverage for the new contract year, the annual premium would total $200,827.00. Overall, the City has had minimal loss with claims exceeding the deductible. The City has received $489,184.00 from HCC during the current contract year for an individual's claims incurred during 2000 and 2001. The City anticipates receiving another $7,900.00 this year for a separate individual's prior claims. Staff Recommendation Staff recommends Council adopt an ordinance for Standard Security Life Insurance Company of New York's proposal, as presented, authorizing the City Manager to execute the policy contract for April 1, 2002 through March 31,2003. Action Reauired bv Council: Adopt an ordinance for Standard Security Life Insurance Company of New York's proposal, as presented, authorizing the City Manager to execute the policy contract for April 1, 2002 through March 31, 2003. Approved for City Council Ae:enda G~ T \-\~ Robert T. Herrera, City Manager 3. \ Lt . 0"1- Date