Coversheet

Item Coversheet

City of Independence
AGENDA ITEM COVER SHEET

Approved


Agenda Title: Approval of Stop-loss insurance for the City's self-insurance health program.


Recommendations: Accept the stop loss insurance renewal proposal from CIGNA


Executive Summary: Action is recommended to renew the City's stop loss coverage for the Stay Well Health Care Program for 2022 Plan Year. The City's current stop loss carrier, Cigna, provided the most competitive cost and coverage proposal.


Background: The City operates a self-funded health insurance program (Stay Well plan) for eligible employees, pre-65 retirees, and dependents. The Stay Well plan has carried stop loss insurance for claims that go over the specific amount determined, currently $275,000. The City's advisor, Cbiz, presented to the Stay Well committee the results of the RFP that was issued for Stop Loss insurance for 2022. The bid from Cigna came in at a 13.4% increase from the current year. This represents roughly a $221,000 year over year increase for a total fixed cost of $1,874,000 The Staywell committee approved the Cbiz recommendation.


Fiscal Impact: The impact to the City is a total premium cost of $1,873,651. The cost of this reinsurance is provided for in the Stay Well Fund projections. The total cost of the Staywell Health Care fund is on page 68 of the 2021-2022 adopted budget.

Department: Finance and Administration

Contact Person: Bryan Kidney

REVIEWERS:
Department	Action
Finance Department	Approved
Finance Department	Approved
City Managers Office	Approved
City Clerk Department	Approved

Council Action:

Council Action:

ATTACHMENTS:
	Description	Type
	Stop Loss Renewal Presentation	Contract