08-Insurance consultant's report

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 11/03/09 Council Date: Finance Gene Anderson g• 11 /09/09 RECOMMENDED MOTION: Receive the insurance consultant's report on the request for proposals for the City's medical, dental, and vision coverage plus life/AD&D and long term disability insurance coverage. POLICY ISSUE(S): Fiscal Management An RFP for fully insured medical, dental, vision, coverage and life/AD&D and long term disability coverage for the City of Paris was issued in September. The City received the renewal response from TML for its fully insured medical program, dental, vision, life/AD&D and LTD; and one additional proposal for vision coverage from Block Vision. While several other carriers and an insurance agency requested RFP material, no other proposals were received. The Block Vision proposal did not meet the RFP requirement to match current City coverage which included having an open network. Their proposal was rejected on that basis since it limited the providers employees could go to for vision services. A review of the medical renewal proposal was performed. The renewal for the Standard plan had no rate increase; the Care Plan renewal was a 10% increase; and the High Plan was a 3% increase. An inquiry to TML was made to obtain an explanation for the increases in the Core and High plans. Being the incumbent, TML had one month's of claim data for the new benefit structure; and the Core plan had a 116% loss ratio, thus the 10% increase in the premium. The Standard plan showed an 82% loss ratio; and the High plan an 86% ratio. TML's renewals for the dental, vision, life/AD&D and LTD had no rate increase. TML required that they have all or none of the optional dental and vision coverage. Since TML has the best overall coverage, their optional plans are the only optional plans being offered to employees in the open enrollment period. TML is also offering a second dental plan with increased benefits. BOARD/COMMISSION RECOMMENDATION: NONE EXHIBITS: Consultant's letter. ACTION: BUDGET INFO: F-I Financial Report ❑ Minute Order Expense $NA ❑ Departrnent Report ❑ Resolution Budgeted Amt. $NA F~ Presentation ❑ Ordinance y'I'D Actual $NA ❑ Public Hearing Z Receive Report Acct. Name NA Acct. Number NA FISCAL NOTES: None REVIEWED AND APPROVED BY: Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT E Finance ❑ Fite ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris _ ~ - 1_ 9 Revised 2/04/08