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Home My WebLink AboutContract 48461-R1 4(c) I Stop Loss Insurance Renewal Offer Voya Employee Benefits CITY SECRETARY CONTRACT NO. 49 4(o l r K I Prepared for: City of Fort Worth Effective Date 01/01/2019 Policy Number 68412-1 Q tL RECEIVED RECENED FEB -82019 FEB 112019 CITY OF FORT WORTH N VORT NNA Y H CITY SECRETARY Excess Risk Insurance is issued by ReliaStar Life Insurance Company, a member of the Voya®family of corn ,1'?Jef.ICIAL RECORD CITY SECRETARY FT. WORTH,TX i ?LAN Issued by ReliaStar Life Insurance Company !NVESr A member of the Voya®family of companies PROTECT yNANL:;A4. Experience Summary for City of Fort Worth 68412-1 Individual Total Reimbursed Policy Record Deductible Number of Reimbursed Pending Paid Premium Claims as a% Level Paid Claims Claims Claims of Paid Premium 04/01/2014 to 12/31/2014 $1,000,000 0 $0 $0 $306,830 0.00% 01/01/2015 to 12/31/2015 $1,000,000 1 $85,833 $0 $378,717 22.66% 01/01/2016 to 12/31/2016 $1,000,000 0 $0 $0 $371,358 0.00% 01/01/2017 to 12/31/2017 $1,000,000 1 $153,714 $0 $374,631 41.03% 01/01/2018 to 09/30/2018 $1,000,000 0 $0 $0 $294,370 0.00% Total $239,547 $0 $1,725,906 13.88% Page 1 PLAN `y �.�/M y Issued by ReliaStar Life Insurance Company INVEST �Y/��AM)j A member of the Voyam family of companies PROTECT F3NANCIAL a Stop Loss Proposal for City of Fort Worth Individual Excess Risk Insurance Plan Effective Date January 1,2018 January 1,2019 Coverages Medical,Rx Medical, Rx Individual Deductible $1,000,000 $1,000,000 Policy Year Maximum Unlimited Unlimited Lifetime Maximum Unlimited Unlimited Coverage Period Paid in 12 Months and incurred Jan 01,2014 Paid in 12 Months and incurred Jan 01,2014 or after or after Benefit Percentage 10010/0 100% Rates Include Commissions of. None None Endorsements Plait Mirroring Coordination Included Included Coverage Description Enrollment/Quoted Rate Enrollment/Quoted Rate Composite Coverage 5832/$4.70 5832/$5.26 Cost Estimated Monthly Costs $27,410 $30,676 Estimated Annual Costs $328,925 $368,116 %Change From Current 11.91% Select Acceptance Choice Page 2 PIAN Issued by ReliaStar Life Insurance Company INVEST jA 1 A member of the Voya•family of companies PROTECT T HNANCIAL Stop Loss Proposal for City of Fort Worth Account Assumptions Renewal As Of Date 11/16/2018 Renewal Good Through November 23,2018 Situs State Texas Claim Administrator United Healthcare Corporation Network United Healthcare Choice Plus Additional Contract Specifications: • Coverage is included for eligible retirees up to age 65 only. • Duplication of current plan designs and contribution levels.Any changes may require an adjustment to the individual excess risk rates. • Rates are firm thru 11/23/2018 pending transplant confirmation. • No fully insured lives are covered. • Plan designs and contribution levels are assumed as submitted to underwriting.Any :hanges may require an adjustment to the individual excess risk rates and/or monthly aggregate corridor. • Plan must have medical case management and utilization review. • All claims are reported/paid in U.S.dollars. • The monthly aggregate corridor cannot be finalized more than 90 days prior to the effective date. Claims data must include a minimum of 9 months in the most recent experience period. • Any costs charged by the claim administrator for reports required to substantiate claims will be paid by the employer. • The proposal is based on the data submitted.Any changes to this data may allow us to modify the proposal. • We reserve the right to(i)recalculate Monthly Aggregate Factor(s)and Individual Excess Risk Monthly Premium Rates as shown on the Excess Risk Schedule and continue this Policy, or(ii)terminate this Policy in accordance with the Policy Termination provision of this Policy if an increase or decrease in the number of Covered Persons and Covered Dependents that exceeds 15%of the current number covered under the Employee Benefit Plan. The individual stop loss renewal is based upon the current leveraged trend factors, market conditions, plan designs and current demographic factors. The aggregate renewal is based upon the experience of the,group and current trend. Any plan changes may affect this renewal and need to be disclosed prior to the renewal acceptance. ALithnJ nze ignature _ Date i ° • J B. S �A ssistwt c-''ity Attorney city� ort worth 2-1 01/01/2019 Excess Risk Insurance is underwritten by ReliaStar Life Insurance Company. PolrrtaLrPOL-2013(may vary by state). Exclusions and limitations are described in the policy. Attested by: OFFICIAL k CORD Issued by ReliaStar Life Insurance Company V �ICIVE sr .J' Y inve A member of the Voya•family of compsKa ROTECT L 'Y J. i Secre �N A4 Economic Factors: Manage the Effects of Leveraged Trend (Illustrative) Medical trend is the anticipated annual increase in the cost of medical claims from year to year. Medical costs generally increase every year through inflation, and there are many additional factors that determine the actual medical trend for a specific health plan. Components of medical trend include: Plan Design Technology Network Utilization Patterns Demographics Cost Shifting Medical trend gets leveraged when parties responsible for medical claims do not maintain the same proportional share of the risk from year to year. Put simply, rising medical costs affect stop loss carriers differently than employers. But rather than passing our increasing risk back on to you in the form of large rate increases, we can compensate with small increases in deductibles. Here's an example. In Year 1, the plan elects a $150,000 $225,000 claim with s%Medical Trend in individual stop loss deductible. If there is an individual claim of Year 2 $225,000, the first $150,000 is the employer's responsibility and Spec Level at$150,000 the remaining $75,000 is reimbursed by the stop loss carrier. 300,000 250,000 24% In Year 2, assuming an 8% increase in medical costs, a claim that would have been $225,000 in Year 1 now costs $243,000. 200,000 a 75,000 93,000 If the deductible doesn't change, the first$150,000 is the E150,000 employer's responsibility and the remaining $93,000 reimbursed 0% by the stop loss carrier. So that 8% trend produces a 24% cost 100,000 increase to the stop loss carrier's claim and 0% increase to the employer. 50,000 Year 1 Year 2 ■Employers Responsibility ■Voya's Responsibility If the stop loss deductible is left at the same dollar level year after year, the employer's risk actually decreases as a percentage of the overall claim. Conversely, the insurer's risk is increasing -- and, in response, the insurer has to increase rates well beyond medical trend. In order to eliminate the leveraging effect, the employer should increase its individual deductible by trend each year. This essentially retains the exact same proportion of the risk. In an effort to mitigate the effects of leveraged trend, your underwriter has included an optional quote during this year's renewal. Excess Risk Insurance is issued by ReliaStor Life Insurance Company,a member of the Voya®family of companies. Page 4 PLAN VyL r w Issued by ReliaStar Life Insurance Company INVEST j��j(J�L` A member of the Voya®family of companies PROTECT r 't FINANCIAL 0� 0Skf> Lo 5 Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Name of Employee/Signature buy-.'�-'�'!l �-'5 Title ❑ This form is N/A as No City Funds are associated with this Contract Printed Name Signature OFFICIAL RECORD CITY SECRETARY ET WORTH,TX Soto, Vania Elizabeth From: Hailey, Meagan Sent: Monday, February 11, 2019 11:31 AM To: Soto, Vania Elizabeth Subject: RE: Question I do not see a vendor signature on last year's either. Contract # 50332 -Thank You Meagan Hailey, CEBS 817-392-7787 Meagan.Hailey@fortworthtexas.gov From: Soto, Vania Elizabeth Sent: Monday, February 11, 2019 9:19 AM To: Hailey, Meagan<Meagan.Hailey@fortworthtexas.gov> Subject: Question The Contract Renewal with Reliastar does not have a vendor signature. Does this one need to be signed by the vendor? Vania E. Soto Administrative Assistant City Secretary's Office 817-392-6090 Vania.Soto@fortworthtexas.gov 1