Title
Stop-Loss Insurance for Active Employee Medical and Pharmacy Benefits (Ordinance S-49280)
Description
The Human Resources Department requests payment authority in the amount of $2,250,000 for Stop-Loss Insurance for active employee medical and pharmacy benefits.
Report
Summary
Under the Trust Agreement for the Phoenix Health Care Benefits Trust, the Trustee (the Trust Board), appointed by the City, is required to obtain and maintain stop-loss insurance. Effective Jan. 1, 2023, the Stop-Loss Insurance policy will be under The Union Labor Life Insurance Company (Ullico).
Procurement Information
A competitive Request for Quotes was conducted by the contracted benefits consultant Foster & Foster, a licensed insurance broker, and Ullico was selected. The Health Care Benefits Trust Board approved the selection of Ullico for Stop-Loss Insurance.
Contract Term
This Stop-Loss Insurance policy is effective from Jan. 1, 2023 through Dec. 31, 2023.
Financial Impact
The annual insurance premium for the 2023 term is estimated at $2,250,000. The annual premium is based on data submitted by the City relevant to underwriting the risk. There is no impact to the City of Phoenix General Fund since the annual premium is paid through the Health Care Benefits Trust Fund.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.