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REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested: December 9, 2013 <br />Source of Funds: Employee Health Fund <br />Requested By:Allison Curry <br />Account Number: 014-6144-515-6012 <br />Department:Human Resources <br />Amount Budgeted:$360,000 <br />Report: Resolution: Ordinance: <br />Amount Requested: $352,251 <br />Exhibits: <br />Stop Loss Comparison Worksheet <br />Budgeted Item:YES <br />NO <br />Exhibit <br />Exhibit <br />SUMMARY & RECOMMENDATION <br />Each year Council is asked to approve the City’s Stop Loss medical insurance contract, which is due to <br />renew on January 1, 2014. This insurance covers payment of all claims for an individual employee or <br />dependent that hasmedical andprescription charges that exceed $165,000.00 (deductible). The <br />proposed contract includes an aggregate amount so that if all claims for all employees and dependents <br />exceed $4.3 million, the insurance provider will cover 100% of all claims over this amount. <br />On November 1, 2013, Requests for Proposals (RFP’s) were mailed to twelve (12) providers of Stop <br />Loss coverage. Four (4) RFP’s were received. <br />ING(the City’s current provider) provided the most competitive bid, for similar terms andconditions as <br />no increase <br />the current contract, which results in from the current year’s rate.The low proposal, <br />submitted by AmWINS (Gerber), is not recommended based on the fact that plan exclusions exposes the <br />City to potentially much higher claims above the stop loss amounts for run out claims (those claims that <br />end up being billed in January 2014 for events that occurred in the prior plan year). For example, if an <br />employee had $300,000 in claims in December 2013 and those claims were billed/paid by the City’s <br />medical provider in January 2014, the exclusion in the Gerber plan would not reimburse the City for <br />claim amounts over the stop loss amount ($165,000). This exclusion alone could eliminate any savings <br />gained by accepting the Gerber proposal. The ING Plan does not exclude run out claims. <br />Staff recommends that Stop Loss coverage be awarded to INGand authorization given to the City <br />Manager to execute the final policy contract for January 1, 2014 through December 31, 2014. <br />Action Required by Council: <br />Consider approval or other action of Stop Loss Contract with ING for January 1, 2014 through <br />December 31, 2014. <br />Approved for City Council Agenda <br />Corby D. Alexander, City Manager Date <br /> <br />