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 25,00...
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