Health Insurance Stop Loss Rene
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MEMORANDUM
June 15, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Specific and Aggregate Stop Loss Insurance Renewal - Health Plans
Personnel Manager Randy Peck recommends that we continue with Allianz as the stop-
loss carrier for the City's health plans for individual and aggregate stop-loss insurance
with a premium in the amount of $334,167 effective July 1, 2004, and that the stop-loss
amount be increased to $85,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
June 8, 2004
TO:
Michael C. Van Milligen
City Manager
FROM:
Randy Peck
Personnel Manager
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SUBJECT:
Specific and Aggregate Stop Loss Insurance Renewal - Health Plans
Health Choices, our health plan administrator, obtained specific and aggregate stop-loss
quotes from Allianz, our current stop loss carrier, and from two other stop-loss carriers - Gerber
and KC Life. Allianz presented the most competitive quote. Their quote is $374,669. The
quotes were based on a specific stop-loss of $80,000, which is our current specific stop-loss
amount. The quote submitted by Allianz represents an increase in premium of $82,819 or a
28.4% increase. The Fiscal Year 2005 budgeted amount for specific and aggregate stop-loss
insurance is $320,005. Allianz presented a quote for a specific stop-loss amount of $85,000.
The specific and aggregate stop-loss premium at the $85,000 level is $334,167. This
represents a 14.5% increase over the Fiscal Year 2004 premium.
The following reflects the number of stop-loss cases that went beyond the specific
amount:
.
Fiscal Year 2000 - 0 cases
Fiscal Year 2001 - 2 cases
Fiscal Year 2002 -1 case
Fiscal Year 2003 - 3 cases
Fiscal Year 2004 (through April 30, 2004) - 2 cases
There is currently one case at $65,000 and three cases between $40,000 and $50,000. I
recommend that we continue with Allianz as our stop-loss carrier and that we increase the
specific stop-loss amount to $85,000 effective July 1, 2004. The Health Care Committee and
Bill Robinson of Gallagher Benefit Services, our actuarial and benefit consultant, have reviewed
the renewal quotes and concur in my recommendation. Sufficient funds are available in the
health insurance reserve to finance the recommendation.
The requested action is for the City Council to pass a motion approving the renewal
rates submitted by Allianz effective July 1, 2004 for specific stop-loss insurance at $85,000 and
for aggregate stop-loss insurance for the City's health plans.
If you have any questions, please feel free to call.
RP:bf
cc:
Health Care Committee