The City operates a self-funded health insurance program (Stay Well plan) for eligible employees, retirees, and dependents.  The Stay Well plan has carried stop loss insurance for claims that go over the specific amount determined, currently $275,000.

Lockton presented to the Stay Well committee the results of the RFP that was issued for Stop Loss insurance for 2021, keeping the specific stop loss amount at $275,000.  This proved to be somewhat of a challenge because carriers did not have truly accurate numbers to analyze due to the Covid 19 pandemic and subsequent restrictions that occurred earlier in the year.  When the RFP came back, the potential rate increase was anywhere from 14% (Cigna) all the way up to a 58% increase.  In addition to the companies that bid on the Stop Loss, several firms were unable to bid due to our historical claim experience or were just not going to be competitive.  The bid from Cigna came in at a 13.6% increase from the current year with a 2nd year rate cap and no new laser provisions.  This represents roughly a $200,000 year over year increase for a total fixed cost of $1,657,083. Since 2015, the premium has increased 100% (2015 premium was $830,799).