ACTION REQUESTED:
Title
Communication from the City Manager and the Director of Human Resources with a Request to Authorize The City Manager To Enter Into A One-Year CONTRACT with GARDEN STATE FOR STOP LOSS INSURANCE SERVICES for the City’s Health Care Plan To Be Effective 1/1/18 Through 12/31/18.
Body
BACKGROUND: Each year, the City’s Labor/Management Health Care Committee enters into an annual agreement for stop loss insurance for the City’s Health Care Plan. Stop loss insurance pays claims for the Health Care Plan over the specific amount of $225,000. The City’s Health Care Consultant, Holmes Murphy & Associates, per the Health Care Committee’s authorization, procures bids from vendors using an IBX auction system online. Stop Loss Vendors submit their cost proposals through this system and are reviewed by the City’s consultant and the Health Care Committee. Garden State submitted a lower cost proposal than the current stop loss vendor’s renewal proposal. The City’s consultant and the Health Care Committee recommend Garden State based on the rates and the ability to provide the required services for the City.
FINANCIAL IMPACT: With approval of this contract, the City will have stop loss insurance in place to receive reimbursement for any claims over $225,000 and help reduce overall health care costs for 2018. The proposed cost of $595,772 annually is less than what was budgeted for 2018.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: The City will have stop loss insurance in place to cover any high dollar claims in excess of $225,000 for medical and prescription claims.
IMPACT IF DENIED: The City would have to pay all high dollar claims under the Health Care budget.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: 03461-181231
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Human Resources