Submitted By: Todd Swanson
presenter
Presentation By: Todd Swanson
end
Department: Human Resources and Risk Management
FORMAL TITLE:
title
Renewal of stop loss insurance coverage with HM Insurance Company for the City's self-funded medical and prescription drug plan for the October 1, 2026, through September 30, 2027, plan year in the amount of $2,315,271
end
OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
body
BACKGROUND:
The City of Ocala maintains a self-funded employee health insurance program. Stop loss insurance protects the City against catastrophic medical and prescription drug claims by limiting the City's financial exposure for high-cost claims while preserving the advantages of self-funding.
Brown & Brown, the City's employee benefits broker, conducted a comprehensive market review for the 2026-2027 renewal. Eleven stop loss carriers were approached for proposals. Ten carriers submitted quotations, with six invited to submit firm proposals. After evaluating premium costs, contract provisions, reimbursement terms, and coverage features, Brown & Brown determined that HM Insurance Company provides the best overall value for the City.
The recommended renewal maintains the City's current specific deductible of $250,000 per covered participant, includes both specific and aggregate stop loss coverage, continues unlimited specific benefits, preserves enhanced aggregate protection, and includes favorable renewal provisions such as no new lasers at renewal unless mutually agreed upon.
FINDINGS AND CONCLUSIONS:
HM Insurance's initial renewal proposal reflected a 29.38 percent premium increase. Through negotiations conducted by Brown & Brown, the increase was reduced to 10.9 percent, resulting in an annual premium increase of approximately $228,544 and negotiated savings of approximately $380,509 compared to the carrier's original renewal proposal.
Staff trust renewing with HM Insurance provides the most favo...
Click here for full text