REVISED COMMUNICATION
ACTION REQUESTED:
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Communication from the City Manager and Human Resources Director with a Request to Authorize the City Manager to Enter into a One-Year CONTRACT with MUNICH RE to be Effective 1/1/15 through 12/31/15 for STOP LOSS INSURANCE SERVICES for the City's Health Care Plan.
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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. The City's Health Care Consultant firm, Holmes Murphy & Associates, coordinated an on-line RFP process to procure stop loss insurance proposals in an auction format, reviewed the submitted proposals, and recommended Munich RE based on the rates and ability to provide the required services for the City.
FINANCIAL IMPACT: With approval of this contract, and increasing the specific stop loss amount to $200,000, as approved by the Health Care Committee and the Finance Director, the City will realize a savings of $100,000 over the 2014 carrier who had proposed a 34% increase.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: The City will have stop loss insurance in place to cover any high dollar claims in excess of $200,000 for specific 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: # 03319-160331
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