Specific and Aggregate Stop-Loss RenewalMasterpiece on the Mississippi
Dubuque
bierd
All-America City
1
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Health and Prescription Insurance Plans Specific and Aggregate Stop
Loss Renewal
DATE: June 12, 2012
The Health Care Committee recommends City Council approval of the renewal rate of
$664,405 submitted by HM Life for Specific and Aggregate Stop -Loss Renewal for the
City's Health and Prescription Drug Insurance Plan, which is $66,657 higher than the
current stop loss premium.
On June 7, 2012, the Health Care Committee met to discuss the specific and aggregate
stop loss renewal proposals. In order to reduce the increase in cost, the Health Care
Committee recommends that we increase the current specific stop loss amount from
$100,000 to $110,000. This year we had five claims that exceeded $100,000. In Fiscal
Year 2011, there were seven claims that exceeded $100,000 and in Fiscal Year 2010
there were two claims that exceeded $100,000. The average number of claims over
$100,000 in the last three years is 4.67. As of May 31, 2012, HM Life has reimbursed
the City $316,095. Our premium for Fiscal Year 2012 is $597,748.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:sv
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Masterpiece on the Mississippi
Dubuque
Stni
AII•AmericaCity
'111'
2007
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Specific and Aggregate Stop Loss Renewal — Health and Prescription
Insurance Plans
DATE: June 7, 2012
On June 7, 2012, the Health Care Committee met to discuss the specific and aggregate
stop loss renewal proposals. In order to reduce the increase in cost, the Health Care
Committee recommends that we increase the current specific stop loss amount from
$100,000 to $110,000. This year we had five claims that exceeded $100,000. In Fiscal
Year 2011, there were seven claims that exceeded $100,000 and in Fiscal Year 2010
there were two claims that exceeded $100,000. The average number of claims over
$100,000 in the last three years is 4.67. As of May 31, 2012, HM Life has reimbursed
the City $316,095. Our premium for Fiscal Year 2012 is $597,748.
Health Choices, our health plan administrator, obtained specific and aggregate stop loss
quotes from HM Life, Companion Life, QBE Insurance Corporation and Chartis. HM
Life, our current carrier, provided the most competitive quote for a specific stop loss
amount of $110,000. Their quote is $664,405, which is $66,657 higher than the current
stop loss premium.
The Health Care Committee recommends that we accept the proposal submitted by HM
Life in the amount of $664,405 for a policy that provides a specific stop loss amount of
$110,000. Coverage would go into effect on July 1, 2012.
The requested action is for the City Council to pass a motion approving the renewal rate
submitted by HM Life effective July 1, 2012, for a policy that provides a specific stop
loss amount of $110,000 for the City's Health and Prescription Drug Plan.
RP:tlb
City of Dubuque
Market Search Summary
Updated 5/25/2012
Single Enrollment
119
Contract
Type
Maximum
S
$100,000
)ecific Deductible
$105,000
Specific Deductible
$110,000
Specific Deductible
Family Enrollment
433
Total
552
Stoploss
Premium
Annual Fixed
Costs
Attachment
Point
Stoploss
Premium
Annual
Fixed Costs
Attachment
Point
Stoploss
Premium
Annual
Fixed Costs
Attachment
Point
Carrier
MGU
Incumbent
or Renewal
HM Life
HM Life
Incumbent
24/12
Unlimited
Lifetime /$5
Million Annual
Maximum
3597,748
3739,565
$8,701,552
Companion Life-
REVISED
Summit Re
Renewal
24/12
Lifetime/
Unlimited
Annual
Maximum
3726,267
3859,410
39,303,877
3703,917
3837,058
$9,345,166
$675,705
3808,847.
39,381,708
QBE Insurance Corp-
Laser on J.G. (if she has
surgery)
SLG
Renewal
24/12
Unlimited
Lifetime /$5
Million Annual
Maximum
$734,583
3867,726
39,664,982
3705,158
3838,300
39,704,728
3677,387
3810,529
$9,740,229
Chartis
Medical
Excess
Renewal
24112
Unlimited
Lifetime /$5
Million Annual
Maximum
3746,435
3879,577
39,532,197
$713,544
3846,686
39,562,351
$684,273
3817,416
39,591,797
HM Life- REVISED
HM Life
Incumbent
Renewal
36/12
Unlimited
Lifetime /$5
Million Annual
Maximum
3750,309
3883,451
39,421,030
3696,200
3829,342
39,477,555
3664,405
3797,548
39,534,066
Non - Competitive or
Preliminary Proposals
Optum Health Denied- Could Not compete with HM Current Rates
US Benefits Uncompetitive- Too High Deductible
Outstanding Quotes
Preferred Health Choices, LLC