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HomeMy WebLinkAboutItem 10 - Stop Loss InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: AUGUST 21, 2018 SUBJECT: APPROVAL FOR THE AWARD OF A CONTRACT FOR MEDICAL AND RX STOP LOSS INSURANCE RECOMMENDATION: City Council to consider approval for the award of a contract for Medical and Rx Stop Loss Insurance with Swiss Re. FUNDING SOURCE: Funds for this purchase are available in account 100-45674-109-1 (Health Insurance Premium) in the estimated amount of $584,000. 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 from any one individual insured. The City's consultants McGriff, Seibels, and Williams secured four proposals for the renewal of this policy. 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/BS