Stop Loss Insurance Renewal Allianz Health
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MEMORANDUM
August 29,2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Specific and Aggregate Stop Loss Insurance Renewal - Health and
Prescription Drug 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 $393,456.36 effective July 1 ,2005. This quote is a
21.6% increase, but more competitive than other price quotes received by the City.
Also, this figure is $50,517.36 over budget, but the health insurance reserves are
adequate to cover this overage.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
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Memorandum
August 15, 2005
TO:
FROM:
Michael C. Van Milligen
City Manager
Randy Peck ~
Personnel Manager U
SUBJECT:
Specific and Aggregate Stop Loss Insurance Renewal - Health and Prescription
Drug 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 -
ISU/Companion and lOA RE/American National. Allianz presented the most competitive quote.
Their quote is $393,456.36. The quotes were based on a specific stop-loss of $85,000, which is
our current specific stop-loss amount. The quote submitted by Allianz represents an increase in
premium of $69,989.16 or a 21.6% increase. The Fiscal Year 2006 budgeted amount for
specific and aggregate stop-loss insurance is $342,939.
I recommend that we continue with Allianz as our stop-loss carrier. 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. Health Choices has issued a
binder to make sure there was no lapse in coverage on July 1, 2005.
The requested action is for the City Council to pass a motion approving the renewal rates
submitted by Allianz effective July 1, 2005 for specific stop-loss insurance at $85,000 and for
aggregate stop-loss insurance for the City's health and prescription drug plans.
If you have any questions, please feel free to call.
RP:bf
cc: Health Care Committee
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