Title
Consider and take action on a resolution approving the employee stop-loss insurance with Cigna Health and Life Insurance Company for the period October 1, 2018 to September 30, 2019 (Director of Human Resources and Civil Service)
Council postponed 8-0-0 on August 28, 2018.
Background:
Approval of this resolution will approve the employee stop-loss insurance with Cigna Health and Life Insurance Company for the period October 1, 2018 to September 30, 2019. On July 24, 2018, City Council approved the changes to the employee insurance benefit program for the October 1, 2018 through September 30, 2019 plan year, as presented at the City Council work session on July 20, 2018, except for stop-loss insurance which was posted for Request for Proposal (RFP) on July 23, 2018 and closed on August 7, 2018.
The City received two submittals as a result of the RFP; one from the incumbent, Cigna, and Stealth Partner Group. After a review of the packets, Stealth Partner Group’s submittal was found to be incomplete and non-competitive. Staff has reviewed the existing stop-loss insurance with IPS Advisors / HUB International (the benefits consultant for the City), which is currently operating at 57% of expected claims.
The City advertised and released an RFP for Stop Loss Reinsurance for the group medical plan on July 24, 2018, a second advertisement also ran on July 31, 2018. The proposal due date stated was August 7, 2018 in accordance with the bid laws relating to purchasing requirements for public entities in Texas.
The proposal documents were requested by and released to Cigna the incumbent, and two MGU groups that have multiple market partnerships - Stealth Partner Group and SA Benefit Services. The results from the two MGU groups and Cigna was as follows:
Stealth Partner Group
American Fidelity - decline uncompetitive rates
Berkley - decline ongoing large claims
Berkshire Hathaway - decline ongoing large claims
HCC - decline uncompetitive rates
HIIG - de...
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