Submitted By: Devan Kikendall
presenter
Presentation By: Devan Kikendall
end
Department: Human Resources and Risk Management
STAFF RECOMMENDATION (Motion Ready):
title
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 $2,029,699
end
OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION
N/A
body
BACKGROUND:
The City has been self-insured for health insurance since October 1, 2010, and purchases stop loss insurance annually to protect the City's self-insured health plan against catastrophic losses. The City's broker, Brown & Brown, 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 Fiscally Sustainable.
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 September 30, 2023.
HM Insurance Group is recommended to continue carrying our stop loss policy. The renewal premium amount represents a 7.65 percent increase.
HM Insurance Group is offering the City a 168/12 contract that covers claims since the inception of becoming self-insured.
FISCAL IMPACT:
Funds will be budgeted in FY23/24 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, William E. Sexton.
ALTERNATIVE:
Request additional quotes.