Sparks City Council Meeting 6/22/2015 2:00:00 PMMonday, June 22, 2015 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks
Consent Items: 8.3
Total Costs: $57,411.00
Fund: Group Insurance Self- Insurance Account: 603085
Program: Provider Contracts in Group Health Fund (050436)
Amount: $57,411.00 Budget Status: Over Budget (See Budget Correction Plan)
A Business Impact Statement is not required because this is not a rule.
The City provides life insurance in the amount of $25,000 to all active employees covered under the City's medical plan; $2,500 for dependents of active employees; and, $10,000 for each City of Sparks Retiree.
Standard Life Insurance Company has been our vendor since 2002, providing life insurance in the amount of $25,000 to all active employees covered under the City's medical plan; $2,500 for dependents of active employees; and, $10,000 for each City of Sparks Retiree. The contract with Standard Life Insurance Company terms on June 30, 2015. Our city’s health insurance broker/consultant – L/P Insurance Services sought bid requests from fifteen (15) companies. Eight (8) declined to quote. Four (4) presented quotes that were not competitive. Three (3) offered competitive quotes: Standard, Symetra and Aetna.
The City's current annual cost for Life Insurance is $57,411. Symetra Life Insurance Company presented a quote at no increase over the current rate and offered a thirty-six (36) month contract. Standard Life insurance requested a 13.16% increase in rates for a thirty-six (36) month contract. Aetna presented a quote of 13.68% over the current rate. Symetra offers identical services to Standard's current policy for $7,554 less over a three (3) year period.
Council could direct staff not to purchase life insurance from Symetra Life Insurance Company or to find other solutions to address this group health benefit.
I move to approve to purchase a group life and accidental death and dismemberment insurance policy with Symetra Life Insurance Company for 2015/16 and authorize for the Contracts and Risk Manager to execute agreements for the policy.
Life Insurance Quotes.pdf