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Home My WebLink AboutContract 53514 MY SECRETARY ,_ Stop Loss Insurance Renewal Offer CONTRACT IdO._, ,> Voya Employee Benefits c Prepared for: City of Fort Worth Effective Date 01/01/2020 Policy Number 68412-1 Excess Risk Insurance is issued by ReliaStar Life Insurance Company, a member of the Voya®family of companies. LFT. i~UAL RECORV TY SECRETARY WORTH,T)f PLAN Issued by ReliaStar Life Insurance Company ,Nvrsr A member of the Voya®family of companies PROTECT FINANCIAL 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 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 12/31/2018 $1,000,000 1 $0 $0 $392,455 0.00% 01/01/2019 to 10/31/2019 $1,000,000 0 $0 $0 $310,845 0.00% Total $239,547 $0 $1,828,006 13.10% PLAN VV Issued by ReliaStar Life Insurance Company INVEST A member of the Voya®family of companies PROTECT s FINANCIAL MEW i WMRA-��„sue-' .. ....... Stop Loss Proposal for City of Fort L^Jorti Individual Excess Risk Insurance Plan Effective Date January 1, 2019 January 1, 2020 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 100% 100% Rates Include Commissions of: None None Endorsements Plan Mirroring Coordination Included Included Coverage Description Enrollment/Quoted Rate Enrollment/Quoted Rate Composite Coverage 5720/$5.26 5720/$6.05 Cost Estimated Monthly Costs $30,087 $34,606 Estimated Annual Costs $361,046 $415,272 %Change From Current Select Acceptance Choice ❑ Issued by ReliaStar Life Insurance Company NvEST A member of the Voya®family of companies ?a-ITECT V 0 y%t 't—A-NC.N�tdt. Stop Loss Proposal for City of Fort Worth Account Assumptions Renewal As Of Date October 31, 2019 Renewal Good Through November 15,2019 Situs State Texas Claim Administrator United Healthcare Corporation, OptumRx Claims Network 2020-01 United Healthcare Choice Plus Additional Contract Specifications: No fully insured lives are covered. Plan must have medical case management and utilization review. All claims are reported/paid in U.S. dollars. 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)[if applicable]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. Premium rates were adjusted via filed and approved underwriting discretion in consideration of the carrier reporting fees assessed by the PBM or TPA,which are directly associated with the claims information we require to administer our Policy. Coverage is included for eligible retirees up to age 65 only. No fully insured lives are covered. Rates are firm until 11/15/2019. 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. Authorized Signature Date City of Fort Worth 68412-1 01/01/2020 Excess Risk Insurance is underwritten by ReliaStar Life Insurance Company. Policy form RL-SL-POL-2013(may vary by state). Exclusions and limitations are described in the policy. uVhCOAL RECORD CITY SECRETARY FT WORTH, TX PLAN Issued by ReliaStar Life Insurance Company INVEST A member of the Voya®family of companies PROTECT FINANCIAL 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 8%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 200,000 83,000 that would have been $225,000 in Year 1 now costs $243,000. � 75,000' If the deductible doesn't change, the first$150,000 is the E 150,000 employer's responsibility and the remaining $93,000 reimbursed � as 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 ► �, a s, employer. 50,000 Year 1 Year 2 ■Employer's 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 ReliaStar Life Insurance Company,a member of the Voya®family of companies. PLAN j /f/ Issued by ReliaStar Life Insurance Company MVEST V A member of the Voya®family of companies PROTECT FINANCIAL I S a l t Stop Loss Policy PARTNER GROUP ASO Stop Loss Sold Summary Date: 12/18/2019 Client Name: City of Fort Worth Sales Rep: Clifton Browning Subsidiaries: n/a Address: 200 Texas Street Effective Date: 1/1/2020 Fort Worth,TX 76102 Renewal Date: 1/1/2021 Phone: (817)392-1234 Original Stealth Effective: 1/1/2019 SE Carrier: Voya Current Year TPA/ASO: UHC Brokerage Firm: Holmes Murphy Additional TPA/ASO: Producer Name: Morgan Young PPO Network: UHC Choice Plus Account Manager: Julie Rickman/David Gibson RX Vendor: OptumRx Address: 12712 Park Central Drive,#100 Utilization Review: UHC Dallas,TX 75251 Phone: (214)265-6309 e-Mail: jrickman@holmesmurphy.com dgibson@holmesmurphy.com Specific Benefit Deductible Type: Individual Spec Advance: No Soac Annual Max: Unlimited Deductible: $1,000,000 Expedited Reimbursement: No Reimbursement%: 100% Agg Specific Deductible: N/A Spec TLO: No No New laser Contract at Renewal: No Contract: 84/12 Domestic Reimbursement: No Renewal Rate Cap%: Gapless: No If Yes,%: Experience Refund: No Covered Benefits: Medical&RX Transplant Policy: No Retirees Covered: Yes Spec Run In Limit: N/A Renalogic Included: No if yes: Pre 65 Aggregate Benefit Contract: N/A Medical: Agg Annual Max: Gapless: RX: Reimbursement%: Agg Accommodation: STD: Agg Corridor%: Agg TLO: Dental: Tribal Members: Est.Agg Attachment Pt: Vision: IHS Facility Available: Agg Run-In Limit: Min Agg Attachment Pt%: IHS Claims Covered Under SL: Current Laser/Limits Individual Amount Type Enrollments EE: 0 EE+SP: 0 EE+CH: 0 EE+Family: 0 Composite: 5720 Total: 5720 Stealth Claims Service: Yes Stealth Premium Service: No Stealth Commission Service: No i Stop Loss Proposal for City of Fort Worth Account Assumptions Renewal As Of Date October 31,2019 Renewal Good Through November 15,2019 Situs State Texas Claim Administrator United Healthcare Corporation, OptumRx Claims Network 2020-01 United Healthcare Choice Plus Additional Contract Specifications: • No fully insured lives are covered. • Plan must have medical case management and utilization review. • All claims are reported/paid in U.S.dollars. • 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)[if applicable]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. • Premium rates were adjusted via filed and approved underwriting discretion in consideration of the carrier reporting fees assessed by the PBM or TPA,which are directly associated with the claims information we require to administer our Policy. • Coverage is included for eligible retirees up to age 65 only. • No fully insured lives are covered. • Rates are firm until 11/15/2019. The individual stop loss ren wal Is based upon the current leveraged trend factors, market conditions, plan designs and current demographic factors.The aggregate ren �al is based upon the experience of the group and current trend. Any plan changes may affect this renewal and need to be disclosed prior t the renewal acceptance. \ 1 1 R 0 Aut riz Sig ature Date y of Fort Worth 68412-1 01/01/2020 Excess Risk Insurance is underwritten by ReliaStar Life Insurance Company. Policy form RL-SL-POL-2013(may vary by state). Exclusions and limitations are described in the policy. Page 3 PLAN Issued by ReliaStar Life Insurance Company INVEST A member of the Voya•family of companies PROTECT FINANCIAL 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. Joanne Hinton Name of Employee/Signature _Benefits Manager Title ❑ This form is N/A as No City Funds are associated with this Contract Printed Name Signature Jotm B. Stung, MY Attorney M&C: x 00+4 of asfao Atteswd FORT 95: zlq-57aa71 Ma J. Ka r, ity Secretary' PEXP � OFFICIAL.RECORD CITY SECRETARY FT. WORTH,TX M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoR°>i 110RTIi �. , r, DATE: 1/28/2020 REFERENCE ""M&C 20- LOG NAME: 14VOYASTOPLOSS2020 NO.: 0044 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Agreement with ReliaStar Life Insurance Company in an Amount not to Exceed $420,000.00 for Stop Loss Insurance for the City's Health Benefits Plan with an Effective Date of January 1, 2020 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council authorize the execution of an Agreement with ReliaStar Life Insurance Company in an amount not to exceed $420,000.00 for Stop Loss Insurance for the City's Health Benefits Plan with an effective date of January 1, 2020. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to seek authorization from the City Council to enter into an Agreement with ReliaStar Life Insurance Company (ReliaStar), a member of the VOYA family of companies, for Stop Loss Insurance for the City's Health Benefits Program for 2020. ReliaStar has provided the City of Fort Worth's (City) Stop Loss Insurance coverage since April 2014. On April 8, 2014, (M&C C-26750) the City Council authorized the City to enter into an Agreement with ReliaStar to provide Stop Loss Insurance coverage through December 31, 2014. On January 6, 2015, M&C C-27136 was approved to provide Stop Loss Insurance coverage through December 31, 2015. On December 15, 2015, M&C C-27557 was approved to provide Stop Loss Insurance coverage through December 31, 2016. On December 6, 2016, M&C C-27998 was approved to provide Stop Loss Insurance coverage through December 31, 2017. On December 5, 2017, M&C C-28485 was approved to provide Stop Loss Insurance coverage through December 31, 2018. On December 11, 2018, M&C C-28964 was approved to provide Stop Loss Insurance coverage through December 31, 2019. The specific Stop Loss coverage caps the City's liability for annual claims on a per member basis. The City pays for all claims for each participant up to a specified dollar amount with the Stop Loss Insurance coverage paying for any claims beyond $1 M per-participant threshold at a cost of$6.05 per employee per month (PEPM) for each active employee and non-Medicare retiree who is a member of the City's self-funded health plan. Funding for the balance of terms of these contracts will be requested as part of the Fiscal Year 2021 budget process. M/WBE OFFICE -A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Human Resources Department and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services from source(s) where subcontracting or supplier opportunities are negligible. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the Group Health Insurance and Retiree Healthcare Trust Funds. Prior to an expenditure being incurred, the Human Resources Department has the responsibility to validate the availability of funds. TO A http://apps.cfwnet.org/council_packet/mc review.asp?ID=27613&councildate=l/28/2020 2/2/2020 M&C Review Page 2 of 2 Fund Department Account Project Program Activity Budget Reference# Amount I ID ID I Year (Chartfield 2) FROM Fund Department Account Project Program Activity Pudget I Reference# Amount ID I ID Year Chartfieid 2 Submitted for City Manaaer's Office by: Jesus Chapa (5804) Originating Department Head: Brian Dickerson (7783) Additional Information Contact: Brian Dickerson (7783) ATTACHMENTS http://apps.cfwnet.org/council_packet/mc review.asp?ID=27613&councildate=l/28/2020 2/2/2020