ITEM TITLE:
Approval to Accept HCC as Stop Loss Insurance Carrier as a Component of the 2024-2025 Benefit Renewal
SUBMITTED BY: Rhea E Cragun, Human Resource Director
FISCAL NOTES:
Expenditure Required: Amount to be included with Total Benefit Renewal Package
Unencumbered Balance: Amount to be included with Total Benefit Renewal
Funding Source: Cost code 41300, pro-rated among all staffed departments
RECOMMENDATION:
Approve HCC as stop loss insurance carrier as a component of the 2024-2025 benefit renewal
SUMMARY STATEMENT:
This agenda item formalizes the continuance of HCC as our Stop Loss Carrier at the current ISL level. The carrier requires a commitment prior to full benefit renewal to lock in the rate for the complete package renewal quote.
Each year as part of our benefit renewal process we work with our broker Park Smith & Feek to determine the best carrier or services to meet the city’s needs and at the most advantageous rates.
HCC returned the lowest quote with a 15.9% increase on our current rate. The nearest quoted increase is 41.5%. No other carrier provided a competitive quote.
Due to the urgency of locking in this rate, it is staff’s recommendation that we accept this proposal from HCC. It is staff's recommendation that we maintain the Current ISL Deductible of $175,000.
The final cost is included in and related to the entire benefit renewal expenditure. Staff will provide Council with the full benefit renewal proposal for 2024-2025 for approval during the March 19, 2024, Regular Council meeting.