Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract with Westport Insurance through SA Benefits for Stop Loss Insurance Protection on the Medical Plan.
Summary
MEETING DATE: December 3, 2013
DEPARTMENT: Human Resources
Purchasing
CONTACT: Tadd Phillips, Director of Human Resources
Debbie Nye, CPPO, CPPB, Purchasing Manager
RECOMMENDED CITY COUNCIL ACTION:
* Approval of Resolution.
ITEM SUMMARY:
* This Resolution authorizes a contract with Westport Insurance through SA Benefits for Stop Loss Insurance effective January 1, 2014.
BACKGROUND INFORMATION:
* The City of McKinney issued a request for proposals (13-30RFP) for Health & Welfare Benefits, in June 2013.
* Bid opening of 13-30RFP was held on July 11, 2013.
* Total of eight (8) bids for Stop Loss insurance were received.
* IPS Advisors, the City's benefits consulting firm, reviewed the proposals.
* Stop Loss element of 13-30 RFP is being awarded at this time because carriers could provide best and final rates once medical claims were available through September 30, 2013.
* IPS Advisors requested the best and final rates from carriers in mid-October and received their updated quotes on October 25, 2013.
* IPS Advisors provided their analysis and recommendations to Human Resources staff on October 31, 2013.
* Of the eight (8) firms that submitted bids, the Westport Insurance quote from SA Benefits was recommended as best evaluated proposal.
* Currently, the City uses IHC Risk Solutions as the Stop Loss carrier for the Medical Plan with $125,000 individual specific deductible, paying $80.22 per enrollee per month. The new rate with Westport Insurance for the same level of coverage will be $63.24 per enrollee per month, resulting in approximately $157,000 in annual premium savings.
* Based on the analysis of large claims for the past four (4) years, IPS Advisors recommends increasing the specific Stop Loss deductible from $125,000...
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