HomeMy WebLinkAboutItem 22 - Stop Loss InsuranceMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: SEPTEMBER 16, 2025
SUBJECT: 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 with HCC.
FUNDING SOURCE: Funds are available in the General Fund (Risk Management) in the
estimated amount of $1,462,000.
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.
Due to higher -than -normal claims this year, the City's insurance
consultant, Lockton Dunning, secured a proposal from our current
provider, HCC, with a rate increase of 47%. Seven other vendors declined
to quote due to the ongoing risk.