11-09-20 Regular Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested:November 09, 2020 014 -Insurance Fund Requested By:Matt Hartleib, Manager Source of Funds: Department:Administration/Human Resources 014-6144-515-6012 Account Number: $674,477 Amount Budgeted: ReportResolutionOrdinance $645,379 Amount Requested: Exhibits:2021 Stop Loss Presentation Budgeted Item:YesNo SUMMARY& RECCOMENDATION OnOctober 1, 2020,Request for Proposal (RFP)#21500 was released for Stop Loss/Reinsurance coverage for the 2021plan year of theCity of La Porte Health Fund. Due to the sensitive nature of the supporting information, this RFP utilized a targeted release of likely bidders in the Stop Loss insurance stth field. The RFPwas advertisedin the Bay Area Observer on October 1and October 8. The current plan year has seen another higher than typical occurrence of high cost claims, but not as high as the 2019 plan year. From January through August 2020, the total Stop Loss premium paid is $364,200. Reimbursements over the same period total $776,746. The RFP generated aresponse of two proposalswhich were opened on October 20, 2020.The proposalsreceived were from Vista-Companion(the incumbent provider) and Aetna. The key differences between thebids are regarding laseredclaims and the specific deductible amount. The bid from Vista-Companionincludes one has issued a specific deductible higher than the $165,000 deductible level for allother claims. The the covered plan year. There is onelaseredclaims in the bid which represent the potential for $185,000additional liability for the plan. Last year through Vista-Companion, the plan also included four laseredclaims with a total potential additional liability of $680,000. Of that potential additional liability in 2020, the plan has actually incurred $180,000through September. The total fixed cost of the Vista-Companion bid is $645,379. The bid from Aetna includes no lasered of $170,000 compared to our currentprovider, specific deductible of $165,000. This means that the plan will be responsible for a potential additional $5,000 in claim costs for each