Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve a Wavier of Bid for Stop Loss Insurance with Symetra Life Insurance Company for FY 2022.
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Submitted By: Robyn Holder, CPPB, Procurement Management Department (PMD).
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB (PMD).
2. Parties: City of Port St. Lucie and Symetra Life Insurance Company.
3. Purpose: To provide Stop Loss Medical Insurance.
4. New/Renewal/Modified: Renewal.
5. Duration: 1 year.
6. Benefits to Port St. Lucie: To protect the City for medical claims that exceed the threshold of $275,000.
7. Cost to Port St. Lucie (Annual and Potential): The estimated expenditure for FY 2022 is $1,680,000.
Presentation Information: N/A.
Staff Recommendation: Move that the Council waive the bidding, per Chapter 35.04(c), good cause shown and approve the renewal of the stop loss insurance policy with Symetra Life Insurance Company.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the renewal of the stop loss insurance with Symetra Life Insurance Company.
2. Move that the Council not approve the recommendation and provide staff with direction.
Background: The City has hired Symetra since 2003 for stop loss insurance and has retained them through a competitive RFP process in 2011. Since 2014, the average increase has been 10.65% with no change to the ISL threshold of $250,000. Since health costs are increasing each year due to raising prescription costs, technology costs, rising chronic illness, etc., the average stop loss increase is around 12-15%. The preliminary renewal offered each year is typically received between 100-120 days prior to the effective date with firm rates received 90 days prior. Stop loss insurance vendors will not release firm rates 90 days prior to the need to receive updated claims experience in order ...
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