M&C Review


COUNCIL ACTION:  Approved on 12/11/2018 

DATE: 12/11/2018 REFERENCE NO.: **C-28964 LOG NAME: 1414VOYASTOPLOSS19
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of Agreement with ReliaStar Life Insurance Company in an Amount Not to Exceed $400,553.00 for Stop Loss Insurance for the City's Health Benefits Plan with an Effective Date of January 1, 2019 (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council authorize the execution of an Agreement with ReliaStar Life Insurance Company in an amount not to exceed $400,553.00 for Stop Loss Insurance for the City's Health Benefits Plan with an effective date of January 1, 2019.

 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to seek authorization from the City Council to enter into an Agreement with ReliaStar Life Insurance Company (ReliaStar), a member of the VOYA family of companies, for Stop Loss Insurance for the City's Health Benefits Program for 2018.

ReliaStar has provided the City of Fort Worth's (City) Stop Loss Insurance coverage since April 2014. On April 8, 2014, (M&C C-26750) the City Council authorized the City to enter into an Agreement with ReliaStar to provide Stop Loss Insurance coverage through December 31, 2014.  On January 6, 2015, M&C C-27136 was approved to provide Stop Loss Insurance coverage through December 31, 2015.  On December 15, 2015, M&C C-27557 was approved to provide Stop Loss Insurance coverage through December 31, 2016.  On December 6, 2016, M&C C-27998 was approved to provide Stop Loss Insurance coverage through December 31, 2017.  On December 5, 2017, M&C C-28485 was approved to provide Stop Loss Insurance coverage through December 31, 2018.  

The specific Stop Loss coverage caps the City's liability for annual claims on a per member basis.  The City pays for all claims for each participant up to a specified dollar amount with the Stop Loss Insurance coverage paying for any claims beyond $1M per-participant threshold.  

Although the City has had a good loss ratio for stop loss, the removal of the Firefighter population for 2019 changes the risk profile of the group.  The remaining membership is now underwritten as a higher risk population. The estimated additional cost is $39,191/year or nearly 12% above the current year cost.  It is anticipated that the Fire Fighter health plan, administered by the Local 440 will be invoiced for this increased cost, consistent with the terms of their Healthcare Contract with the City.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Human Resources Department and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services from source(s) where subcontracting or supplier opportunities are negligible.  

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the Group Health and Life Insurance and Retiree Healthcare Trust Funds.  Funding for the balance of terms of these contracts will be requested as part of the Fiscal Year 2020 budget process.

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Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Brian Dickerson (7783)
Additional Information Contact:
Margaret Wise (8058)

 
 
ATTACHMENTS
  1295 Stop Loss Redacted.pdf