HomeMy WebLinkAboutItem 28 - Medical and RX Stop Loss Insurance MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 17, 2024
SUBJECT: APPROVAL OF ANNUAL POLICY FOR MEDICAL AND RX STOP LOSS
INSURANCE
RECOMMENDATION: City Council to consider approval for an annual policy for Medical and RX
Stop Loss Insurance.
FUNDING SOURCE: Funds are available in the General Fund (Risk Management) in the
estimated amount of$1,016,000.
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 consultant, McGriff Services, secured proposals from
nine vendors. The incumbent HCC provided a 12% rate increase. City
staff reviewed the proposals and determined HCC would provide the best
service for the City's needs.
Staff recommends approval.