Title
Consider a memorandum/resolution awarding RFP 23-36 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, 2023, in the amount of $739,718.
Summary
DATE: September 5, 2023
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: AWARD RFP 23-407 FOR AN EXCESS RISK POLICY (STOP LOSS INSURANCE) FOR MEDICAL AND PHARMACY CLAIMS UNDER THE CITY HEALTH INSURANCE PLAN WITH UNITED HEALTH CARE IN THE AMOUNT OF $739,718.
BACKGROUND AND FINDINGS:
On June 27, 2023, Council approved United Healthcare as the City's Group Employee Medical and Pharmaceutical benefit provider, effective October 1, 2023. 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 FY24.
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 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 Benefits Consultant, Lockton Dunning, on July 10, 2023, 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 a proposal from United Health Care ($739,718), the sole bidder. The review and evaluation of the proposal were based on product offerings, the reputation of the vendor, and cost savings for the City and the employees.
After a thorough analysis of the stop-loss insurance proposal and option, staff recommends entering into an agreement with United Health Care for the plan year 2024 for a term of one year in the ...
Click here for full text