Health and Prescription Drug Plans_Specific and Aggregate Stop Loss Insurance RenewalTHE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
band
AI -America City
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2007 • 2012 • 2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Health and Prescription Drug Plans - Specific and Aggregate Stop Loss
Insurance Renewal
DATE: June 9, 2014
Personnel Manager Randy Peck recommends City Council approval of the Health and
Prescription Drug Plans Specific and Aggregate Stop Loss Insurance Renewal with AIG
in the amount of $611,791 for the plan year beginning July 1, 2014 and ending June 30,
2015, and maintaining the specific stop loss amount at $120,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
",'I144 ,,,,,,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Randy Peck, Personnel Manager
Jennifer Larson, Budget Director
Masterpiece on the Mississippi
Dubuque
had
ao-aitciry
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2007 • 2012.2013
TO: Michael C. Van Milligen, City Manager (�
FROM: Randy Peck, Personnel Manager
SUBJECT: Health and Prescription Drug Plans — Specific and Aggregate Stop Loss
Insurance Renewal
DATE: • June 10, 2014
Health Choices Inc., our Health Plan Administrator, obtainedSpecific and Aggregate
Stop Loss quotes from HM Life, our current stop loss carrier, and from AIG and HCC.
AIG presented the most competitive quote. Their quote is $611,791 for the plan year
beginning July 1, 2014 and ending June 30, 2015. HM Life presented a quote of
$667,763. The current premium is $667,763. AIG's quote includes an unlimited annual
maximum. The current policy provides for a $5,000,000 annual maximum.
The Health Care Committee, at their meeting on May 28, 2014, recommended that we
accept the proposal presented by AIG in the amount of $611,791. The Health Care
Committee also recommended that we keep the specific stop loss amount at $120,000.
I support the Health Care Committee's recommendation.
The requested action is for the City Council to pass a motion accepting the proposal
presented by AIG in the amount of $611,791 for the plan year beginning July 1, 2014
and ending June 30, 2015, and maintaining the specific stop loss amount at $120,000.
RP:Imh
HEALTH CHOICES
Current stopi.oss
HM Life
$120,000 Specific
Unlimited Lifetime
$5 Million Annual
" Current Lazer on FT 5225,000
Current Pieni ums
Single Premium
546.51
Family Premium
5105.50
Aqq
$5.58
Total Stop Loss
5667,763
HC Admin
520.15
Total Fixed Cost
$805,588.80
Single
130
Family
440
Total
570
Sto • Loss Pro • • sats
Carrier Plan Design
$120 000
Stop Loss
Premium Increase Fixed Cost Aggregate
.$130
Stop Loss
Premium Increase
000,
Fixed Cost
Aggregate
Stop Loss
premium
0140 000
Increase Fixed Cost
Aggregate
HM LIFE- 24/12
Current $5MM Annual
Plan Unlimited Lifetim
5667,763 $805,589 $10,136,568
24/12
HCC FINAL Unlimited Annual
Unlimited Lifetime
$613,516 -8% $753,052 511,097,756
$586,186 -12%
5725,722
511,253,062
$543,947
-19%
$683,483
511,408,537
24/12
AIG FINAL Unlimited Annual
Unlimited Lifetime
$611,791 -8% $751,327 $10,814,803
$569,290 -15%
$708,826
510,949,100
$522,299
-22%
$661,835
511,069,848
HM Life 60/12
FINAL Unlimited Lifetime
$5MM Annual
5667,763 0% $807,299 510,916,830
5584,098 -13%
5723,634
$11,047,817
$543,286
-19%
$682,822
511,124,253
HM Life 60/12
FINAL Unlimited Lifetime
Unlimited Annual
$672,398 1% $811,934 $10,916.830
5588,510 -12%
$728,046
511,047,817
$547,630
-18%
$687,166
511,124,253
"HCC has a run-in aggregate limit of $1,664,663
'AIG has a run-in aggregate limit of 16%-
any claims on member R1106707102 for inpatient stays must be paid
prior to the effective date.