Recommend approval to procure Contract Modification No. 2 for Medical and Pharmacy Stop Loss Insurance Service with International Assurance of Tennessee, Inc. (IAT) in the amount not to exceed $1,318,000.This contract is used by the City of Savannah to provide for catastrophic claims reinsurance coverage for the City’s self-funded medical and pharmacy plans. The coverage for FY26 monthly rates has increased to $30.94/single coverage monthly rate and $64.21/family coverage monthly rate. The premium coverage is calculated based on member enrollment in the City’s self-funded medical and pharmacy plans. Member enrollment is estimated to be 1,261 members with single coverage and 1,103 members with family coverage. The increase is due to a significant amount of high dollar medical claimants and number of reimbursements that IAT has paid to the City of Savannah. The City’s current benefits consultant, USI Insurance Services, conducted a market assessment of multiple vendors and determined this is the most competitive and cost-effective plan. ​This contract was originally approved by Council on December 19, 2019, in the amount of $716,797. The first modification was approved December 7,2023 for $884,082. The total amount of this contract, including the modification, is $1,318,000.

B.P. International Assurance of Tennessee, Inc. (Franklin, Tennessee) (D) $1,318,000

(D) Indicates non-local, non-DBE-owned business.

Approval