Specific and Aggregate Stop Loss Insurance Renewal Copyright 2014
City of Dubuque Consent Items # 6.
ITEM TITLE: Specific and Aggregate Stop Loss Insurance Renewal
SUMMARY: City Manager recommending approval to accept the proposal presented by
AIG for Health and Prescription Drug Plans - Specific and Aggregate Stop
Loss Insurance for the plan year beginning July 1 , 2015, and ending June
30, 2016, and maintaining the specific stop loss amount.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
❑ Specific&Aggregagte Stop Loss Insurance Renewal-MVM Memo City Manager Memo
❑ Specific&Stop Loss Insurance Renewal Staff Memo
❑ Health Choices Stop Loss Proposals Supporting Documentation
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Health and Prescription Drug Plans — Specific and Aggregate Stop Loss
Insurance Renewal
DATE: May 28, 2015
Personnel Manager Randy Peck recommends City Council approval to accept the
proposal presented by AIG for Health and Prescription Drug Plans-Specific and
Aggregate Stop Loss Insurance in the amount of $632,488 for the plan year beginning
July 1, 2015, and ending June 30, 2016, and maintaining the specific stop loss amount
at $120,000.
Although AIG's proposal is $4,332 higher than the proposal submitted by HM Life, there
is value of having more experience with a carrier. We have been with AIG for one year
and have changed stop loss carriers three times since July 1, 2010. Continuing to
change carriers may make it difficult to obtain quotes in the future. AIG has provided
excellent service. In addition, the aggregate amount for HM Life is approximately
$335,773 higher than the aggregate amount for AIG. Although we have never had
claims high enough to reach the aggregate amount, should it happen, we are at risk for
up to $335,773.
1 concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
THE CITY OF - Dubuque
UUB
-e
Atl-America City bE
Masterpiece on the Mississippi 11117 ,,21113
TO: Michael C. Van Milligen, City Manag
FROM: Randy Peck, Personnel Manager
SUBJECT: Health and Prescription Drug Plans — Specific and Aggregate Stop Loss
Insurance Renewal
DATE: May 21, 2015
Health Choices Inc., our health plan administrator, obtained specific and aggregate stop
loss quotes from AIG, our current stop loss carrier, and from HM Life, QBE, Summit Re
and US Benefits. The current annual premium is $624,335. The following is a
summary of the quotes:
Carrier Stop Loss Premium
AIG $632,488
HM Life $628,157
QBE $592,055
Summit Re $619,497
US Benefits $760,060
HM Life, QBE and Summit Re submitted proposals with premiums less than the renewal
rate presented by our current carrier AIG. QBE's quote is subject to May claims being
submitted which will likely increase their quote. Summit Re placed several restrictions
and contingencies on their quote which puts the City at risk of having some claims not
covered by the excess policy.
The Healthcare Committee, at their May 14, 2015 meeting, recommended that we
accept the proposal presented by AIG, our current carrier. The committee also
recommended that we keep the specific stop loss amount at $120,000. 1 support the
Healthcare Committee's recommendation.
Although AIG's proposal is $4,331 higher than the proposal submitted by HM Life, there
is value in having more experience with a carrier. We have been with AIG for one year
and have changed stop loss carriers three times since July 1, 2010. Continuing to
change carriers may make it difficult to obtain quotes in the future. AIG has provided
excellent service. In addition, the aggregate amount for HM Life is approximately
$335,773 higher than the aggregate amount for AIG. Although we have never had
claims high enough to reach the aggregate amount, should it happen, we are at risk for
up to $335,773.
The requested action is for the City Council to pass a motion accepting the proposal
presented by AIG in the amount of $632,488 for the plan year beginning July 1, 2015,
and ending June 30, 2016, and maintaining the specific stop loss amount at $120,000.
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