O-2002-2546 - Laserfiche WebLink

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Date: March 12, 2002 The Wetch Company MEMORANDUM To: Carol Buttler, Director of Administrative Services Two Memorial City Plaza 820 Gessner, Suite 1470 Houston, Texas 77024 T: 713.827.8755 F: 713.461.5788 www.thewelchco.com From: Neal W. Welch Subject: 2002 Stop Loss Insurance Coverage Via E-mail On January 23, 2002, nine (9) proposals were distributed to the stop loss insurance market. On February 21,2002, four (4) responses were received during the sealed bid opening. Two (2) other proposals including the incumbent were received after the published deadline. The foHowing are a few notes about the proposals, the market and the City of La Porte's health plan. The Proposals . Good competitive proposals for consideration . Vendors were willing to reduce premiums to become more competitive during "Best and Final Offer" phase of negotiation. . Security Standard Life presented by American Stop Loss, Inc. appears to be the strongest proposal based on period of coverage (24 months incurred/12 months paid) . Requested three levels of specific deductible: $100,000, $115,000 and $125,000 . Annual specific premium is up approximately 27%; aggregate premium is down approximately 30% from last year's proposed rate. Aggregate coverage may be more desirable this year. . No lasered potential large claimants as proposed last year. The Market . Market-wide increases of approximately 25% are common. . Less competition, fewer stop loss insurance companies. . Coverage was under-priced for many years. . International supply of re-insurance funding dwindling. . September 11th insurance pay-outs depleted funds for insurance. City of La Porte Health Plan . Employee participation in plan is growing. . Employees are using the plan more than in the past. . Specific deductible is set appropriately for the market responses.