Health Plans Allianz stop lossMEMORANDUM
June 12,2003
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Individual and Aggregate Stop-Loss Insurance Renewal - Health Plans
Personnel Manager Randy Peck and the Health Care Committee recommend that we
continue with Allianz as our stop-loss carrier for the City's health plans for individual and
aggregate stop-loss insurance with a premium in the amount of $300,146.52 effective
July 1,2003.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
June 11, 2003
TO:
FROM:
SUBJECT:
Michael C. Van Milligen
City Manager
Randy Peck
Personnel Manager
Individual and Aggregate Stop-Loss Insurance Renewal- Health Plans
I have attached for your review the renewal proposal for July 1, 2003 presented
by Health Choices. Health Choices obtained individual and aggregate stop-loss
renewal quotes from Allianz, our current stop-loss carrier, and from two other stop-loss
carriers. Allianz' quote is $300,146.52. The quote received from Employers
Reinsurance is $340,115.16. QBE Insurance submitted a quote of $406,319.40. The
proposal submitted by Allianz represents an increase in premium of $60,287.16 or
25.2%. The Fiscal Year 2004 budgeted amount for individual and aggregate stop-loss
is $292,437. I recommend that we continue with Allianz as our stop-loss carrier. The
Health Care Committee has also approved this recommendation. The requested action
is for the City Council to pass a motion approving the renewal rates submitted by Allianz
effective July 1, 2003 for individual and aggregate stop-loss insurance for the City's
health plans.
If you have any questions, please feel free to call.
RP:bf
Enclosure
cc: Health Care Committee
City of Dubuque EPO and Indemnity Plans Effective: July 1, 2003
[ Single 93 Family 454 Total 547 J
[ EPO = 63 / 344 Indemnity 30 / 110
Current -Allianz Life RENEWAL - Allianz Life Employers Reinsurance QBE Insurance
PAID $80,000 PAID $80,000 15/12 $80,000 15/12 $80,000
Specific Single 13.08 / 15.73 15,551.28 16.55 / 19.9019,675.80 20.84 23,257.44 29.34 32,743.44
Specific Family 36.49/44.18 208,948.32 46.16/55.89 264,323.28i 52.10 283,840.80 62.80 342,134.40
Total Specific Premium $224,499.60 $283,999.08 $307,098.24 $374,877.84
Aggregate Premium 2.34 15,359.76 2.46 16,147.44 5.03 33,016.92 4.79 31,441.56
Total Annual Fixed Costs $239,859.36 $300,146.52 $340,115.16 $406,319.40
AGGREGATE FACTORS /ATTACHMENT POINT PAID 15/12 15/12
Single Medical Factor 355.47 396,704.52 410.18 457,760.88 431.67 481,743.72 393.41 439,045.56
Family Medical Factor 940.05 5,121,392.40 1,087.00 5,921,976.00 1,079.18 5,879,372.64 1,040.38 5,667,990.24
Single Rx Factor 0.00 0.00 0.00 0.00
Family Rx Factor 0.00 0.00 0.00 0.00
Attachment Point 5,518,096.92 6,379,736.8[ 6,361,116.36 6,107,035.80
Run In Limit 919,000
MAXIMUM LIABILITY $5,757,956.28 $6,679,883.40 $6,701,231.52 $6,513,355.20
Notes:
Maximum
Specifc Reimbursement $1,000,000 $1,000,000 $1,000,000 $1,000,000
~.ggregate Reimbursement $1,000,000 $1,000,000 $1,000,000 $1,000,000
included in Specific Medical only Medical only Medical only Medical and Rx
included in Aggregate Medical, Rx and Dental Medical, Rx and Dental Medical, Rx and Dental Medical and Rx
Monthly Accommodation 0.00 0.00 2.00
a. ggregate Terminal Liability 0.00 0.00 1.25