HomeMy WebLinkAboutItem 12 - Stop Loss InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: AUGUST 17, 2021
SUBJECT: APPROVAL OF AN ANNUAL POLICY FOR MEDICAL AND
PRESCRIPTION STOP LOSS INSURANCE
RECOMMENDATION: City Council to consider approval for an annual policy for Medical and
Prescription Stop Loss Insurance with HCC.
FUNDING SOURCE: Funds are available in the Health Insurance Premium budget for an
estimated amount of $860,000.
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.
The City's insurance consultants, McGriff Services secured proposals
from Swiss Re, Symetra, Berkshire Hathaway, Optum and HCC. The
proposals include increases in premiums up to 12%. However, HCC
premium is only 3.52% over current. City staff reviewed the proposals and
determined that HCC would provide the best service and pricing for
meeting the needs of the City.
Staff recommends approval.