HomeMy WebLinkAboutItem 08 - Stop-Loss InsuranceMEMOTO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 3, 2019
SUBJECT: APPROVAL TO RENEW AN ANNUAL CONTRACT FOR MEDICAL AND
PRESCRIPTION STOP -LOSS INSURANCE
RECOMMENDATION: City Council to consider the renewal of an annual contract for medical
a n d prescription stop -loss insurance with Swiss Re for the Risk
Management Department.
FUNDING SOURCE: Funds for this purchase are available in account 100-45674-109-
001 (Health Insurance Premium) in the estimated amount of $685,935.
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. The City's consultants McGriff, Seibels, and Williams
secured pricing 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/LW