Title
Consider a memorandum/resolution awarding RFP 22-30 to United Health Care for an excess risk policy (stop-loss insurance) for medical and pharmacy claims under the City health insurance plan, effective October 1, 2022 in the amount of $648,405.
Summary
DATE: September 6, 2022
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: AWARD RFP 22-30 FOR AN EXCESS RISK POLICY (STOP-LOSS INSURANCE) FOR MEDICAL AND PHARMACY CLAIMS UNDER THE CITY HEALTH INSURANCE PLAN TO UNITED HEALTH CARE IN THE AMOUNT OF $648,405
BACKGROUND AND FINDINGS:
On June 28, 2022, Council approved United Healthcare as the City's Group Employee Medical and Pharmaceutical benefit provider, effective October 1, 2022. The City will need to purchase stop-loss insurance in the event of high claims to support the self-insured health care and pharmaceutical plan in FY23.
Stop-loss insurance protects the City against catastrophic or unpredictable losses. The City of Killeen will protect its plan with both specific and aggregate stop-loss coverage. Specific Stop-loss insurance protects the City against a high claim on any one individual. Aggregate stop-loss provides a ceiling on the dollar amount of expenses that the City would pay, in total, during a contract period.
In partnership with the City's Employee Benefit Consultant, Lockton Dunning, on July 3, 2022, the City initiated a Request for Proposal (RFP) for firms experienced in stop-loss insurance coverage for the City of Killeen employees and retirees. Staff received and reviewed proposals from United Health Care ($648,405), Symetra ($1,077,732), HM ($1,240,705), and Sun Life ($1,297,159). The review and evaluation of the proposal was based on product offerings, reputation of the vendor, and cost savings for the City and the employees.
After a thorough analysis of the stop-loss insurance proposal and options, staff recommends entering into an agreement with United Health Care for ...
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