Specific and Aggregate Stop Loss Insurance-Health and Prescription Drug Plans Copyrighted
June 19, 2017
City of Dubuque Consent Items # 8.
ITEM TITLE: Specific and Aggregate Stop Loss Insurance-Health and
Prescription Drug Plans
SUMMARY: City Manager recommending approval of the selection of
Wellmark, who submitted the low quote, as the specific and
aggregate stop loss carrier for the health and prescription
drug plans for Fiscal Year 2018.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve
ATTACHMENTS:
Description Type
Specific and Aggregate Stop Loss Renewal for Heal City Manager Memo
and Prescription Drug Plans-MVM Memo
Staff Memo Staff Memo
Stop-Loss Renewal Analysis Supporting Documentation
THE CITY OF Dubuque
fta B E I 11p y
Masterpiece 012 the Mississippi 2007.2012«2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Specific and Aggregate Stop Loss Renewal — Health and Prescription
Drug Plans
DATE: June 13, 2017
Quotes were obtained from several firms for specific and aggregate stop loss insurance
for the City's health and prescription drug plans.
Personnel Manager Randy Peck recommends City Council approval of the selection of
Wellmark, who submitted the low quote, as the specific and aggregate stop loss carrier
for the health and prescription drug plans for Fiscal Year 2018.
The Fiscal Year 2017 cost with AIG is $803,768. The Fiscal Year 2018 cost with
Wellmark will be $567,663, for a $236,105 (29.4%) reduction in costs.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
fi ,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Jennifer Larson, Budget Director
Alexis Steger, Senior Budget Analyst
THE CITY que
OF Dubu
-AmedcaCiiy
B WE I H III
Masterpiece on the Mississippi 2.007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Specific and Aggregate Stop Loss Renewal — Health and Prescription
Drug Plans
DATE: June 12, 2017
Quotes were obtained from several firms for specific and aggregate stop loss insurance.
AIG is our current carrier and the annual premium is $803,768. The following is a
summary of the quotes with a specific stop loss amount of$120,000, which is our
current specific stop loss amount:
Percent
Firm Annual Increase/Decrease Increases/Decreases
Premium
Wellmark $567,663 -$236,105 -29.4%
AIG * $924,728 +$120,960 +15.0%
Sun Life $809,551 +$5,783 +0.7%
HM Life $1,010,944 +$207,176 +25.8%-
1 recommend that Wellmark be selected as the specific and aggregate stop loss carrier
for the health and prescription drug plans effective July 1, 2017 through June 30, 2018.
Wellmark has an AM Best Rating of "A".
The requested action is for the City Council to pass a motion approving the proposal
submitted by Wellmark effective July 1, 2017 through June 30, 2018, for specific and
aggregate stop loss insurance for the city's health and prescription drug plan.
RP/tlb
*The proposal submitted by AIG also includes a specific stop loss amount of$300,000
on one claim.
• 1 • e 0 1
Current
Stop Loss Analysis-AIG AIG Benefit
Solutions
Individual Deductible $120,000
Contract Type-Lifetime Limit 24/12
Annual Limit Unlimited
Single Rate $45.38
Family Rate $130.47
Composite ISL Rate $112.27
Estimated Total ISL Premium $774,650
Composite ASL Rate $4.22
Estimated Total ASL Premium $29,118
Estimated Total ISL&ASL Premium $803,768
Renewal
AIG Benefit
Stop Loss Analysis Welimark-" Solutions H)- Sun Life HM Life insurance"
Individual Deductible $120,000; $120;000"" $120,000 $120,000-
Contract Type-Lifetime Limit 24/12`" 24/12; . 15/12_
Illustrative or Firm 1 irm; ' Illustrative tZt illustrative t�1 illustrative tZl
Annual Limit Unlimited Unlimited `;',Unllrnited Unlimited
Single Rate $79.89 $54.24 $55.45 $69.45
Family Rate $79.89 $149.94 $129.75 $159.75
Composite ISL Rate $79.89 $129.47 $113.86 $140.43
Estimated Total ISL Premium $551,241 $893,333 $785,608 $968,992
Percent Increase vs.Current -28.8% 15.3% 1.4% 25.1%
Composite ASL Rate $2.38 $4.55 $3.47 $6.08
Estimated Total ASL Premium $16,422 $31,395 $23,943 $41,952
Percent Increase vs.Current -43.6% 7.8% -17.8% 44.1%
Estimated Total ISL&ASL Premium $567,663 $924,728 $809,551 $1,010,944
Percent Increase vs.Current -29.4% 15.0% 0.7% 25.8%
Incremental Cost vs.Current $236,105) $120,960 $5,783 $207,176
Wellmark Stop Loss Carve-out Fee($0.50 PEPM) $3,450 1 $3,450
Net costs/(savings) ($236,105 $124,410 -$972-33` $210,626
(1)Laser for DB in the amount of$300,000.
(2)Quote is illustrative and contingent on receiving a pended and Pre-Cert report,treatment plan,case/nurse management notes and status for large claims.
Prepared by Gallagher Benefit Services
6/9/2017