TITLE
Consider a memorandum/resolution awarding RFP 20-34 to United HealthCare for an excess risk policy (stop loss insurance) for medical and pharmacy claims under the City health insurance plan, effective October 1, 2021 in the amount of $614,755.
SUMMARY
DATE: September 7, 2021
TO: Kent Cagle, City Manager
FROM: Eva Bark, Executive Director of Human Resources
SUBJECT: RECOMMENDATION TO EXECUTE A ONE-YEAR AGREEMENT FOR AN EXCESS RISK POLICY (STOP LOSS INSURANCE) FOR MEDICAL AND PHARMACY CLAIMS UNDER THE CITY HEALTH INSURANCE PLAN WITH UNITED HEALTHCARE IN THE AMOUNT OF $614,755.
BACKGROUND AND FINDINGS:
On June 8, 2021, Council approved Request for Proposal (RFP) 20-21 Group Employee Medical and Pharmaceutical Benefits awarding United HealthCare as the City’s self-insured benefit provider, effective October 1, 2021. 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 FY22.
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 Benefit Consultant, Lockton Dunning, on August 1, 2021, 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 one proposal from United HealthCare. 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 HealthCa...
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