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:

Staff recommends switching the stop loss insurance from CIGNA to Sun Life. 
Executive Summary:

Action is recommended to switch the City's stop loss coverage for the Stay Well Health Care Program for 2023 Plan Year. The City's current stop loss carrier, CIGNA, was not the most competitive in cost and coverage.
Previous Activity:

November 30: Stay Well Committee recommended to the City Manager to accept the proposal from Sun Life.
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 for each individual member over the specific amount determined, currently $275,000. The stop loss carrier has no impact on plan member experience.  

 

The City's advisor, CBIZ, presented to the Stay Well committee the results of the RFP that was issued for Stop Loss insurance for 2023. The bid from Sun Life came in 1.6% under the current year from CIGNA (and $40,608 lower than CIGNA's Negotiated Renewal). This represents a year over year decrease for a total fixed cost of $1,722,997.


Fiscal Impact:

The impact to the City is a total premium cost of $1,722,997. 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 220 of the 2022-2023 adopted budget.
Department:          City Manager's OfficeContact Person:          Adam Norris

REVIEWERS:
DepartmentAction
Human Resources DepartmentApproved
Finance DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved
Council Action:          Council Action:         
ATTACHMENTS:
DescriptionType
Stop Loss Renewal PresentationBackup Material