Title
Resolution Approving City's Reinsurance Provider for 2013
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Consider resolution approving Optum as the City's reinsurance provider for 2013.
SOURCE OF FUNDING:
Please provide the amount requested: _n/a___________
Is this a budgeted item? Yes
Please provide the budgeted amount: $_2,451,754.45___ Account No. _01-660-10xx_(includes both health claims and reinsurance premiums)_________________
If budgeted, is this a capital purchase, capital project, or special fund? n/a _________________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No n/a
If yes, please provide the amount included in Capital Projects Plan: $__n/a_________
Body
APPROVING CITY'S REINSURANCE PROVIDER FOR 2013
WHEREAS, the City obtained quotes for reinsurance coverage for health care claims, and
WHEREAS, the City's current provider for reinsurance is Optum Health who has carried reinsurance for the City since the City became fully self insured in 2009, and
WHEREAS, the City's current annual fixed rate with Optum is $296,014.20 and the annual renewal fixed rate quote is $307,632.60, a difference of $11,618.40, and
WHEREAS, Human Resources has budgeted sufficient funds to cover the new renewal rates for 2013.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: The City accepts Optum's 2013 quote for reinsurance coverage as shown on the attached spreadsheet.
SECTION 2: No budget adjustment is required for this action.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.