Specific and Aggregate Stop Loss Renewal_Health and Prescription DrugMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Specific and Aggregate Stop Loss Renewal - Health & Prescription Drug
Plans
DATE: June 14, 2010
Personnel Manager Randy Peck and the Health Care Committee recommend that the
City approve selection of American National Life of Texas as the stop -loss carrier for the
City's health and prescription drug plans with a premium in the amount of $501,240
effective July 1, 2010. This amount is $52,975 less than the quote submitted by
Companion Life, the City's current carrier. It is further recommended that the City
maintain the current specific stop loss amount of $90,000.
concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Michael C. Van Milligen
Dubuque
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AFAmedeaCIN
2007
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manage
FROM: Randy Peck, Personnel Manager
SUBJECT: Specific and Aggregate Stop Loss Renewal - Health & Prescription Drug
Plans
DATE: June 8, 2010
Dubuque
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2007
Health Choices, Inc., our health plan administrator, obtained specific and aggregate
stop loss quotes from Companion Life, our current stop loss carrier, and from five other
stop loss carriers. The other stop loss carriers are American National Life of Texas,
Delos Insurance Company, Kanawha, U.S Fire and Unimerica Insurance Company.
The following is a summary of the quotes:
Companion Life (current rate) $558,948
Companion Life (renewal rate) $554,215
American National Life of Texas $501,240
Delos Insurance Company $595,183
Kanawha $659,925
U.S. Fire did not provide a
quote for a $90,000 specific deducible
Unimerica Insurance Company $761,766
As part of Companion Life's quote, they would require a specific stop loss amount of
$200,000 for one of the existing large claims. American National Life of Texas provided
a quote for a specific stop loss amount of $90,000 for all claims.
American National Life of Texas presented the most competitive quote. The Health
Care Committee recommends that we accept the proposal submitted by American
National Life of Texas in the amount of $501,240 which is $52,975 less than the quote
submitted by Companion Life. The committee also recommends that we maintain the
current specific stop loss amount at $90,000. Coverage would go into effect on July 1,
2010.
The requested action is for the City Council to pass a motion approving the renewal rate
submitted by American National Life of Texas effective July 1, 2010, for specific and
aggregate stop loss insurance for the City's Health and Prescription Drug Plan.
Health Choices, Inc. has obtained a binder to make sure there would not be a lapse in
coverage on July 1, 2010.
RP:sya
City of Dubuque
Market Search Summary
Single Enrollment 125
FamOy Enrollment 413
Total Enrollment 538
Carrier
Companion Lb (4 lasers)
Companion Lie (1 laser)
American National Life of Tx
Dos Insurance Company
Kanawha
US Fire
Urimertca Insurance Company
Best Re
Perko Life
Gerber Lfe
Summit Re
&mil Re
USBens
IMG
OptumHeallh
Current
Renewal
Contract
Paid
Paid
24112
24!12
24112
24112
24112
Maximm
$2,000,000
$2,000,000
$2,000,000
$2,000,000
$1,000,000
$1,000,000
$2,000,000
$90,000
Specific Deductible
Stoploss
Premium
$558,928
$554,215
$501,240
$595,183
$659,925
$761,166
Annual Fixed
Costs
$680,946
$682,690
$929,714
$723,657
$788,399
$890,241
Attachment
Point
$7,151,196
$7,936,051
$7,889,065
$1,792,011
$8,281,861
$8,366,913
$95,000
Specific Deductible
Stoploss
Premium
$478,375
$675,338
$613,289
($100,000)
$717,101
Annual
Find Costs
$606,850
$703,812
$741,763
($100,000)
$846,175
Attachment
Pant
$7,910,115
$8,025,119
$7,935,679
($100,000)
$8,409,820
$100,000
Specific Deductible
Stoploss
Premium
$487,113
$445,839
$551,336
$599,544
$539,634
($115,000)
$681,001
Annual Fixed
Costs
$616,187
$512,054
$679,811
$728,018
$668,109
($115,000)
9,482
Attachment
Point
$1,983,981
$7,931,655
$8,266,535
$8,398,022
$7,966,104
($115,000)
$3,450,570
$110,000
Specific Deductible
Stoploss
Premium
Annual Fined
Costs
Attachment
Point
$448,963
$407,943
$471,925
$548,003
$500,106
($125,000)
$613,210
$577,437
$536,417
$600,399
$676,477
$629,180
($125,000)
$741,685
$8,046,729
$7,914,399
$8,514,486
$8,182,750
$7,999,877
($125,000)
$8,534,226
Declined to quote
Declined to quote
Declined to quote