Health Ins. Stop Loss Insurance Renewal
D~~~E
~ck~
MEMORANDUM
June 27, 2006
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 $429,969 effective July 1, 2006. This is a 14.3%
increase in premium from the previous year.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(leA 4:~/t(L
MiChael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
D~~~E
~c/de-~
Memorandum
June 27, 2006
TO:
FROM:
Michael C. Van Milligen
City Manager ff\ ()
Randy Peck ~ '\l
Personnel Manager
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 - Summit
Re/Companion and lOA Re/QBE Insurance Corporation. RBS Re and Sun Life were asked to
prove a quote, but declined. Allianz presented the most competitive quote. Their quote is
$429,969. The quote is 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
$53,696 or a 14.3% increase.
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 this recommendation. Health Choices has issued a
binder to make sure there was no lapse in coverage on July 1, 2006.
The requested action is for the City Council to pass a motion approving the renewal rates
submitted by Allianz effective July 1, 2006 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
Randy Peck - Scan001.PDF
.
co
0
0
!;:::!
....
-
l"-
s:::
~
(I:J
Q)
en
-
Q)
-t: 2:-
(I:J E
:E ..
Q) ...
::J ;I;
CT ...
::J "
.0 c
::J ..
0 .!!
'0 '"
c
i:' iii
(3 ..
N
..
I
[
0
a.
~
-
0
..
"
..
c
!l
c
0
"
"
..
..
!II
Page 5 I
1!,
;e ~ co .... 0
.... .... ....
... '" '" '" '"
c. ~ ~ <6 .,;
I, ~ co
41 .... .... co
:Iii tl ~ ~ ~ <6 " "
it ii <It > >
s '"
.:I: i
I ~
E E
.. 8 8
I c c
::J ::J
I: . , ,
, al al
1;1 ,:'.:'.--"," C C
. i ~
:,::0; 0 0
I"~ 11
I"
i:! '" ~ ~
" N ~ on
~ :,' ", :e ~ .,; ..:
., ::.. '" t;
'" ~ on
I: ... <It ..
;'c-
~,
...' :)
" :2 N N
~ .. ~
.. ~
D..
'-':c. ,t
, .,.
:.
.' - 1 c
c 0
.i' '. ~ i
.' c ~
" &! ~
. u ~
. . <3
<3 <3 ..J
'i. 3 " ~ !l
." u c c
c c ~ I!
,. i..'.. I I! I! "
" " e ..
I ! .. 0 oS
oS u
.' ~ .! ~ w
. :::i ~
..J '" &! .!
" lil l! N
Ii c E 0: :::;
.!! J!! e ~ VI c
~ :a: " !II "
" VI 0: VI
r
co
Cl
Cl
N
...
~
:l
..,
<C ~
~~
W~
::::l-
a;
::::l 1Il
lD C
::::l 1Il.
cllii:
II. III
o!
~...I
-8
o_
w
'0
III
~
III
C
<C
,
NCDO!
coo.
.00_
=t!.."CL
:a::=:!i.=
"~c(
HIDe!
coo II
.00_
=!::!a.riCL.
c:t:~=
"'~c(
"';
-..,.
cOcO
N'"
....
"'i
..,.-
..cD
~
..
II
'OJ
D::II~
e g.'e
::l ._ '"
-1IlU.
e
I!!
11.
>-
:E
-
C
o
::E
...
~-~
"'.0
... .
......
..,....
...
00
...
...
,.:
...
...
...
e II
::l WI
olE !
I!! "
11..5
'ii'E
~ ~
C II
c(ll.
'"
0>
'"
,.;
'"
....
5lI
'"
0>
Ul
,.;
'"
....
N'"
CO
.0
=t!
-...
c(;:::
'"
~~
,0
00 .
_0
....
'"
'"
'"
!Ii
-
....
e II
::l WI
'E !
I!! "
11..5
"i1:
::l II
C e
C II
c(ll.
"'!:~
~,..: O>,~
~CW')....o
CONO) .
~_..,.,o
....~
"'!:~
'" '0>
!';;;t
"!...,.
- '
....~
Gl~
c;, 'E
.5 as
enu.
. .
- --
o 0 C
~ ~'o ::
u.u.I1...
- !
c:c:cu
CD Q) Q,t .E
E-E ~ C
-5-5"8
"'..~~
~~c(~
'"
00
0>
.n-
O>
-
.n-
....
'"
00
0>
.n-
O>
-
.n-
....
..
e
'.
(j
~
'.
11.
~
fl
l
an
-
tII
'E
'"
t)
o
o
0,
-
..
00
tt
...
"';,I.
.... ...
....
"'.....
.....-
...
~N~~
~_;:;I'"
Gl
Gl
,.,,.,
0_
Q.'E
E '"
wu.
c
o
'l:I
II
..
.
aI
Ul
o
o
~
-
-
'"
"'
8
'~
Gl
en
-
0::
:g~
Glo-
ale
- -
Gl ~
J::....
g>",
1io
c>1
lll!
'O~
~ ::>
",g-
o...,
Gl ::>
- 'C
11.32
e
::l
'e
I!!
11.
ii
C
o
..
'is
'l:I
c(
~ >-
:a -.!!
...-
-e::l
...1-0
e.!!-
._ U II
'" ... C
- 0
t) ClI'-
-C~
'" ._ 'l:I
CE'l:I
,2 ::l c(
~"iii
'l:I.....
'l:I"'O
c(-....
N'"
CO
",0
=t!
--
c(;:::
o
o
o
o
o
'"
tt
...
..
N
wi
..
...
...
..
e
'.
(j
'l:I
'.
11.
~
fl
II
a.
)(
W
In
aI
C>
l!!
en
o
t)
III
III
o
...I
11.
e
III ::
Q ..
w!
>< "
iL.E
i!c
I- ~
e~