Submitted By: Chris Watt
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Presentation By: Chris Watt
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Department: Human Resources and Risk Management
STAFF RECOMMENDATION (Motion Ready):
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Approve a one-year renewal with HM Insurance Group to provide stop loss insurance for the City's self-insured health plan with an expenditure of $1,885,503
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable.
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City has been self-insured for health insurance since October 1, 2010, and annually purchases stop loss insurance to protect the City's self-insured health plan against catastrophic losses. The City's broker, Combined Insurance Services, worked with HM Insurance Group to obtain a renewal quote.
Staff is requesting to renew HM Insurance Group for a one-year term to provide stop loss insurance for the City's self-insured health plan. This item supports City Council's strategic goal of Fiscal Sustainability.
FINDINGS AND CONCLUSIONS:
The City's current stop loss insurance is underwritten and administered by HM Insurance Group; however, Florida Blue holds the risk. The current contract with HM Insurance Group expires on September 30, 2022.
HM Insurance Group is recommended to continue carrying our stop loss policy. The renewal premium amount represents a 13.96% increase.
HM Insurance Group is offering the City a 156/12 contract which covers claims since inception of becoming self-insured.
FISCAL IMPACT:
Funds will be budgeted in FY22/23 in account #627-099-999-590-81-45010 for these premiums.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
The renewal will be reviewed and approved for form and legality by the City Attorney, Robert W. Batsel, Jr.
ALTERNATIVE:
Request additional quotes.