Title
Specific Stop-Loss Insurance for Employee Health and Accident Benefits (EHAB) Fund (B)
Explanation
The City of Gainesville purchases specific stop-loss insurance to protect the City's Group Health Plan. Specific stop-loss insurance is a risk-financing tool used to transfer the risk of catastrophic health claims to a third party. Under a stop-loss arrangement, the City's Group Health Plan would be responsible to pay for a claim until it reaches a set dollar amount called the attachment point. Once the claim exceeds the attachment point, the insurer will reimburse the Group Health Plan for all costs paid above the attachment point.
The City, through its insurance broker Arthur J. Gallagher & Co., utilized a Request for Proposal process to market the specific stop-loss insurance program. Arthur J. Gallagher solicited bids from six (6) insurance companies and received four (4) qualified bids. Based on the review of these bids, Arthur J. Gallagher & Co. and the City's Risk Management Department recommends Symetra as the insurance carrier for the City's specific stop-loss insurance provider.
Fiscal Note
Funds are available in the fiscal year 2005 EHAB Fund Budget.
Recommendation
The City Commission: 1) approve the selection of Symetra as the insurance carrier for Specific Stop-Loss coverage; 2) authorize the issuance of a purchase order in an amount sufficient to cover the estimated cost of providing this insurance; and 3) authorize the Interim City Manager or designee to negotiate with and enter into an initial agreement for one (1) year, with the option of two (2) additional one-year renewals if mutually acceptable rates are obtained.