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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested December 12, 2011 <br />Requested By Heather Weger <br />Department: <br />Human Resources <br />Report Resolution: Ordinance: <br />Exhibits: Consultant Recommendation <br />Exhibits: <br />Exhibits: <br />Appropriation <br />Source of Funds: Reinsurance Premiums <br />Account Number: 01461445156012 <br />Amount Budgeted: '375,000 <br />Amount Requested: 5345,153 <br />Budgeted Item: 0 NO <br />SUMMARY & RECOMMENDATION <br />On November 4, 2011, a Request for Proposal for Stop Loss quotes was sent to 11 different Stop <br />Loss carriers. Of the 11 carriers, 2 submitted proposals, 2 indicated they do not participate in <br />sealed bids, 4 declined to quote due to non - competitive rates and 3 did not respond at all. The <br />two quotes for the current plan design resulted in a 14.7% premium increase and an increased <br />maximum claims liability for the aggregate stop loss of 37.2 %. These increases are a reflection <br />of the claims experience during the past 12 months. <br />To offset the increase in the Stop Loss premiums, the City has the option to increase the <br />individual stop loss deductible from $145,000 to $165,000. This would impact the health fund if <br />an individual employee's claims reached this amount and would have no impact to individual <br />employees. Currently, the City's Stop Loss coverage takes effect when an individual employee's <br />annual claims reach $145,000. By increasing the individual Stop Loss deductible to $165,000, <br />the City's Health Fund would absorb the additional $20,000 before the Stop loss would take <br />effect. Based on the analysis of the City's claim history within the last 3 years, the consultant <br />does not believe the additional claims exposure will offset the estimated $58,052 savings in the <br />premiums. Our current vendor, ING submitted the most competitive proposal for this option. <br />Action Required by Council: <br />Consider approval or other action to renew the City's Stop Loss Coverage with ING at an annual <br />premium of $345,153. <br />Approved for City Council Agenda <br />Steve Gillett, Interim City Manager <br />Date <br />