AGENDA MEMORANDUM

Meeting Date:           December 19, 2011

From:                          Mike Thornton, Purchasing Manager

                                    Jakki Perry, Human Resources Director

Subject:                      Purchase request 44150 to Brown and Brown, Inc. for excess stop loss health insurance premium

Staff Recommendation:

The Human Resources Director recommends approval of purchase request 44150 to Brown and Brown, Inc. for excess stop loss health insurance premium for a total of $367,916.00 for fiscal year 2012.

Analysis:

The City of Leesburg is self insured for the employee and retiree health insurance program and purchases excess stop loss coverage in the event of very large health insurance claims.  Excess stop loss protection or reinsurance is protection for our self-funded group medical program from catastrophic losses, and to limit the City’s total claim exposure. The excess stop loss program consists of two (2) layers of protection, Specific Stop Loss Coverage, and Aggregate Stop Loss Coverage. Specific Stop Loss Coverage, currently with an attachment point of $80,000, provides reimbursement from the reinsurance company for the amount of any individual claim that exceeds $80,000. Additionally, the Aggregate Stop Loss Coverage protects the City of Leesburg if the total claims experience during the policy year exceeds the Aggregate Stop Loss attachment point which is currently $5,193,463 or 125% of the expected claims for FY 11/12.

This purchase request is for the payment of the premium to Brown and Brown, Inc. the insurance agent of record approved by commission August 28, 2006 by Resolution 7707.

Options:

1.  Approve the purchase request to Brown and Brown, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The amount of $367,916 has been budgeted and is available in the account listed for this purpose.

Submission Date and Time:    12/14/2011 7:44 PM____

Department: _Human Resources Dept.__ Prepared by:  _Mike Thornton________                      Attachments:         Yes____   No __X___ Advertised:   ____Not Required __X___ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. _____JB___________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _064-1340-519.45-40__ Project No. ___________________ WF No. ______________________ Budget  _____$367,916.00________ Available ____$367,916.00________