Submitted By: Devan Kikendall
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Presentation By: Devan Kikendall
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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 $1,811,711
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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 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 requests to renew HM Insurance Group for one year to provide stop-loss insurance for the City's self-insured health plan. This item supports the 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, 2024.
Staff recommends HM Insurance Group continue to carry the City’s stop-loss policy. The renewal premium amount represents a 14.2 percent decrease in premiums.
HM Insurance Group is offering the City a 180/12 contract that covers claims since the inception of becoming self-insured.
FISCAL IMPACT:
Funds for these premiums will be budgeted in Fiscal Year 2024-25 in account #627-099-999-590-81-45010.
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.