HomeMy WebLinkAboutItem 18 - Stop Loss InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
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FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 15, 2015
SUBJECT: APPROVAL FOR CONTRACT RENEWAL FOR MEDICAL AND
PRESCRIPTION PLAN STOP LOSS INSURANCE
RECOMMENDATION:
City Council to consider award of an annual contract with Munich Re for Medical and Rx
Stop Loss Insurance.
FUNDING SOURCE:
Funds are available in account 100-45674-109-1 (Health Insurance Premium) in the
estimated annual amount of $345,000.
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The City of Grapevine is self-funded for employee 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 seven proposals for the renewal of this policy. City staff
reviewed the proposals and determined that Munich Re would provide the best service
and pricing for meeting the needs of the City.
The annual premium for FY 2015 stop loss insurance is $310,991. The medical and
prescription insurance plan have exceeded the stop loss limits therefore Munich Re has
reimbursed the City $130,938 as of September 4, 2015.
This contract is for one year and may be renewed for up to three successive, one-year
terms.
Staff recommends approval.
9/9/2015 11:40:13 AM