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| January 9, 2025 City Council Regular Meeting | |
| Title 27. Authorize The City Manager To Execute A Contract Modification No. 2 and Renewal For Medical and Pharmacy Stop-Loss Insurance Services With Assurance of Tennessee, Inc. in an Amount Not To Exceed $1,123,923. The City of Savannah uses the contract to provide catastrophic claims reinsurance coverage for the City’s self-funded medical and pharmacy plans. (Human Resources) | |
| Strategic Priority Good Government | |
| Description This is for a Renewal and Contract Modification No. 2 for Medical and Pharmacy Stop-Loss Insurance Services with Assurance of Tennessee, Inc. in the amount of $1,123,923.
The City of Savannah uses the contract to provide catastrophic claims reinsurance coverage for the City’s self-funded medical and pharmacy plans. 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 1120 members with single coverage and 1000 members with family coverage. The contract reflects an increase of approximately 6.2% from the prior year. 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. The new rates per month will be $26.31/single coverage and $60.98/family coverage.
This contract was originally approved by Council on December 23, 2021, in the amount of $841,141. Contract Modification No. 1 and renewal was approved by Council on January 12, 2023, in the amount of $870,000. | |
| Recommendation Approval | |
| Contact Jeff Grant, Senior Director, Human Resources | |
| Financial Impact Expenditure of $1,123,923 from the Risk Management Fund | |
| Review Comments | |
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Attachments Exhibit 1: Funding Verification- Medical and Pharmacy Stop-Loss Insurance Services.pdf Exhibit 2: Purchasing Notes-Medical and Pharmacy Stop-Loss Insurance Services.pdf |
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