| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | Agenda Title:
Council action is requested to approve a one-year agreement with SunLife for Stop-Loss Insurance with 3.4% rate increase. |
| | | | | | | | Recommendations:
Staff recommends approval. |
| | | | | | | | Executive Summary:
Action is recommended to renew the City's stop loss coverage for the Stay Well Health Care program for 2024. |
| | | | | | | | Background:
As the City of Independence self-funds its health insurance, we utilize Stop-Loss Insurance to ensure the financial stability of the Stay Well Plan. The Stay Well Fund covers the initial $275,000 of any medical or prescription claim, with the excess reimbursed by the Stop-Loss Carrier.
In light of the significant high-cost claims faced by the Stay Well Plan, Stop-Loss insurance has been indispensable. As of September 30, 2023, we've encountered 5 claims exceeding $275,000, totaling $2,062,188. Our current Stop-Loss policy has already reimbursed $687,188 of this amount.
Typically, Stop-Loss insurance renews on an annual basis. Following a competitive RFP process, the Stay Well Committee recommends retaining the current provider for 2024. SunLife has quoted a 3.4% increase for 2024, equivalent to $59,620 over our 2023 rate, resulting in a 2024 rate of $1,798,277. |
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Fiscal Impact:
The 2024 rate would be $1,798,277 and is funded in the 2023-24 Approved Budget in the Staywell Fund (091) page 271 Other Operating Expenses.
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| | | | | | | | | Department: Human Resources | Contact Person: Jaime Rehmsmeyer |
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| REVIEWERS: | | Department | Action | | Human Resources Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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