HomeMy WebLinkAboutItem 11 - Stop Loss InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 6, 2022
SUBJECT: ANNUAL INSURANCE POLICY FOR MEDICAL AND RX STOP LOSS
RECOMMENDATION: City Council to consider approval for an annual insurance policy for
Medical and Rx Stop Loss with HCC.
FUNDING SOURCE: Funds are available in the General Fund (Risk Department) for an
estimated amount of $810,000.
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 HCC, Symetra, Berkshire Hathaway, UNUM, Berkley, Sun Life, Voya
and QBE. The incumbent HCC provided a rate decrease of 2.87% with no
changes. 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.