Laserfiche WebLink
Regular City Council Meeting <br />March 8, 2004 <br />Page 7 <br />Two matched the specifications; ten did not match the specifications. He said <br />he had received 48 variations of self-funded plans. Four met the specifications; <br />twelve proposals lacked enough information to tell if they met the <br />specifications. But for the purposes of his analysis, he assumed that they did <br />meet the specifications and he considered those proposals. <br />Mr. Anderson said, on the basis of his examination, the best fully funded plan <br />that met the specifications is the one being proposed through the Capps <br />Insurance Agency with Humana being the primary underwriter or insurance <br />company involved. <br />Mr. Anderson said under the self-funded plan, the Texas Municipal League <br />plan had the best price. <br />Mr. Anderson said he described both plans in his memo. The advantage of a <br />fully-funded plan is knowing the exact cost unless the employee census <br />changes. The city will pay in for a certain number of employees, with certain <br />coverages, at a fixed premium. <br />Mr. Anderson said a self-funded plan is not as clear because there are fixed and <br />variable costs. The fixed costs are the administrative charge for processing <br />claims and the stop loss insurance. He explained that there were two types of <br />stop loss coverage. One pays on an individual claim that exceeds a certain <br />number and the reinsurance carrier would reimburse the City. The other pays <br />if the group as a whole exceeds a certain number. <br />Councilman Bell asked Mr. Anderson to clarify the cost the city was paying for <br />a fully-funded plan. Mr. Anderson explained that the city did not have a fully- <br />funded plan, but they have a self-funded plan. Mr. Anderson advised that the <br />city was paying $500.00 per employee per month under the previous budget, <br />and this year the City Council budgeted $450.00 per employee. The target goal <br />as to what would be acceptable to get a fully-funded, or self-funded plan that <br />they thought would be workable and feasible if that contribution was bid. He <br />thought they had this here anyway the City Council wanted to go. Mayor <br /> <br />