Title
RFP No. 2023-026 - Annual Medical Plan Reinsurance (Stop Loss).
(Staff recommends award to VOYA Financial Advisors, Inc., through insurance broker, Stealth Partner Group, LLC, and to authorize the City Manager to finalize and execute any required documents for FY 2022-2023, to secure stop loss coverage for the City group medical healthcare plan in an amount not to exceed $835,077.00.)
Body
Name of Department
Human Resources
Projected/Budgeted Amount
$835,077.00
Sum of Bid/Bid Amount
$835,077.00
The City of Mesquite is self-insured in its group healthcare plans for full-time employees and pre-65 years old retirees. The City’s current stop loss insurance carrier requires the City to retain the first $400,000.00 in eligible expenses on each approved healthcare claim. Once the City meets its $400,000.00 stop loss insurance threshold, the stop loss insurance carrier’s liability is unlimited.
Staff bids the premium expense for this coverage annually through a third-party stop loss broker Stealth Partner Group, LLC (Stealth). Once stop loss insurance coverage is secured, such coverage is renewable on a year-to-year basis based on negotiated premium rates. For calendar year 2023, VOYA Financial provided the best rate with a 5 percent decrease.
Financial Implications
The stop loss insurance coverage is funded in the City’s Group Medical Insurance Fund and is budgeted for $835,077.00 in the FY 2022-2023 budget.
Recommended/Desired Action
Staff recommends award to VOYA Financial Advisors, Inc.
Attachment(s)
Proposal
Drafter
Libby Craven
Head of Department
Rick French