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HomeMy WebLinkAboutItem 09 - Stop Loss InsuranceMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: SEPTEMBER 1, 2020 SUBJECT: APPROVAL FOR THE AWARD OF RFP 498-2020 FOR MEDICAL AND RX STOP LOSS INSURANCE RECOMMENDATION: City Council to consider approval for the award of RFP 498-2020 for a Medical and Rx Stop Loss insurance policy with Swiss Re for the Risk Management Department. FUNDING SOURCE: Funds are available in the General Fund Health Insurance Premium budget for an estimated amount of $830,000. BACKGROUND: The City of Grapevine is self-funded for employee and pre -65 retiree medical and prescription insurance. Therefore, the City assumes all or a portion of the risk for medical and prescription drug claims for all covered members on its health plan. Stop Loss Insurance is designed to offer effective protection against excessive claims by limiting the amount of risk on any one individual insured. An RFP was issued in accordance with Local Government Code Chapter 252, Subchapter B, Section 252.021(a) and Section 252.041(a) and in conjunction with the City's insurance consultants; McGriff, Seibels and Williams. The RFP was advertised in the Fort Worth Star Telegram on July 23 and July 30, 2020. Three vendors submitted responses. The RFP was opened publicly at the offices of McGriff, Seibels and Williams on August 6 at 2 pm. The City's insurance consultants, McGriff, Seibels and Williams evaluated the three proposals from Swiss Re, Berkley and Sun Life based on the City's requirements and the services offered. City staff reviewed the proposals and determined that Swiss Re would provide the best service and pricing for meeting the needs of the City. Staff recommends approval MH/LW