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The Welch Company <br />Employee Benefits Consulting & Brokerage <br />~~_ 820 Lessner, Suite 1470 <br />Houston, Texas 77024 <br />713/827-8755 <br />welchco@msncom <br />-~L4 EMAIL <br />MEMORANDUM <br />TO: Louis Rigby <br />FROM: Diana L. Roma noli _ i~~~ <br />g <br />RE: Stop-Loss Proposal Comparisons <br />DATE: March 12, 2001 <br />As you know we received one (1) proposal last week on the RFP for Stop-Loss Insurance Coverage. <br />Attached is a spreadsheet that outlines the proposal this year as well as the last three years. The <br />following are a few notes discussing the proposal, the market and the City of LaPorte Health plan. <br />The Proposal <br />• Current vendor, consistency is good. <br />• Rates up in part due to the many employees with target diagnosis. <br />• Aggregate coverage out of reasonable consideration. <br />The Market <br />• Market-wide increase of approximately 25%. <br />•:• Less competition, fewer stop-loss insurance companies (via acquisitions). <br />• Coverage under-priced for many years. <br />• International supply of re-insurance dwindling. <br />City of La Porte Health Plan <br />• Potential of claims, little activity now. <br />• Employee population is low for strong market. (including retirees) <br />• State legislation of no lasering deters proposals. <br />• TML not recognized vendor for many stop-loss companies. <br />At this point you may wish to unbundle the two coverages and consider specific Stop-Loss only. <br />While the decision is completely up to you, we wish only to point out that the $2,500,000 aggregate <br />attachment point maybe difficult to reach. Therefore, the $25,000 premium should be reviewed. <br />Attachments <br />