TO: Mayor Thomas J. Weisner
FROM: Alicia Lewis, Director of Human Resources
DATE: November 13, 2014
SUBJECT:
A Resolution Authorizing An Agreement for Health Insurance Stop/Loss Coverage with QBE Insurance Group, Ltd. For the Period January 1, 2015 through December 31, 2015
PURPOSE:
To obtain approval to purchase Stop/Loss Insurance for the City's PPO Health Insurance Plan for 2015.
BACKGROUND:
QBE Insurance Group, Ltd. has provided the City of Aurora with Stop/Loss coverage since 2012. Stop/Loss insurance provides excess coverage for PPO health insurance claims that exceed $325,000 per claim deductible. Prior to QBE, the City retained ING for ten (10) years.
DISCUSSION:
After soliciting proposals from six (6) stop/loss insurance carriers, the City received two (2) bids including the incumbent, QBE. QBE Group's 2015 proposal represents a 4% increase above their 2014 premium. A market summary and cost comparison are attached as reference. Allied is recommending renewal with QBE for 2015 based on the combination of the existing positive relationship, premium quote, and proven track record of performance and compliance. The City's past and present loyalty within the stop loss market and recent lack of excess claims has made it an attractive prospect for stop loss carriers. QBE is the lower bid this year, totaling $499,198.68 while maintaining a $325,000.00 per claim deductible.
IMPACT STATEMENT:
No impact.
RECOMMENDATIONS:
Place on Finance Committee agenda (11/25/14) for approval to City Council.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing An Agreement for Health Insurance Stop/Loss Coverage with QBE Insurance Group, Ltd. For the Period January 1, 2015 through December 31, 2015.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City of Aurora Comprehensive Medical Plan coverage is self-insured and annually requires the purchase of health insurance stop/loss coverage; and
WHEREAS, QBE Insurance Group, Ltd. has provided stop/loss coverage equivalent to the City's needs, it is in the best interest of the City of Aurora to renew stop/loss coverage through QBE; and
WHEREAS, the 2015 City budget provides $499,198.68 for this item in account numbers; 704-0000-410.28-53; 704-0000-410.28-63; 704-0000-410.28-73; and 602-0000-410-28.03.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the coverage and rates as outlined in the attached summary for the QBE proposal shall be in effect as of January 1, 2015 with a $325,000 per claim deductible.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
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