Title
Selection of Symetra Life Insurance Company as the Carrier for the City's Group Health Plan Specific Stop-Loss Insurance (B)
This item involves the selection as Symetra Life Ins. Co. to provide the City's Group Health Plan with Specific Stop-Loss Insurance for claims in excess of $150,000.
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, in this case an insurer. 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 that attachment point.
This is not a policy that would be purchased through the City's broker agreement with Marsh. The City of Gainesville, with the aid of Waters Risk Management developed a Request for Proposals (RFP) for Stop-Loss Insurance for its Group Health Plan. The City received quotes from six insurance carriers through two Agents. Despite the fact that the RFP allowed for carrier direct quotes and requested carriers to provide multiple quotes through different agents, there were no direct carrier quotes and only one carrier presented quotes through multiple agents. Four quotes were received through Gallagher Benefit Services and two through Hilb, Rogal & Hobbs (HRH).
The RFP was evaluated based on Cost (45pts), Coverage (25pts), Service (15pts) and Financial Stability (15pts). The final scores reflect an additional five points awarded to the local vendor as required by the City's Local Vendor Preference ordinance. Based on the review of the proposals following the above scoring criteria, staff recommends the insurance program quoted by Symetra Life as the provider of specific stop loss insur...
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