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.
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.
1. Approve the purchase request to Brown and Brown, Inc.; or
2. Such alternative action as the Commission may deem appropriate
The amount of $367,916 has been budgeted and is available in the account listed for this purpose.
Department: _Human Resources Dept.__
Prepared by: _Mike Thornton________
Attachments: Yes____ No __X___
Advertised: ____Not Required __X___
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _____JB___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _064-1340-519.45-40__
Project No. ___________________
WF No. ______________________