Authorize the City Manager to Amend the Contract with United Healthcare (UHC) to Serve as the City's Stop-Loss Insurance Carrier.

Monika Kretschmer, Human Resources Director

Authorize the City Manager to Amend the Contract with United Healthcare (UHC) to Serve as the City's Stop-Loss Insurance Carrier.

The City of Allen is self-insured for health and dental and currently contracts with United HealthCare for administration of those benefits. In years past, the City has been able to obtain savings in Stop Loss Insurance coverage by contracting with a separate third party vendor outside of United HealthCare for the Stop Loss coverage needed to mitigate against catastrophic claims. However, Sun Life Financial, the FY 2014 Stop Loss Insurance Carrier for the City, reported a 30% increase in premiums for FY 2015. Working with the City's third party administrator, IPS Advisors, the City was able to negotiate an amendment to the current United HealthCare contract to include Stop Loss Insurance for FY 2015 at no increase to the current premium levels.

Electing United Healthcare (UHC) for Stop Loss Insurance will result in no change to the premiums paid for Stop-Loss Insurance and thus will have no budgetary impact.