Sparks City Council Meeting 6/11/2018 2:00:00 PMMonday, June 11, 2018 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV
General Business: 9.5
Total Costs: $79,704.00
Fund: Group Insurance Self- Insurance Account: 603085
Program: Provider Contracts in Group Health Fund (050436)
Amount: $79,704.00 Budget Status: Budget Exists
A Business Impact Statement is not required because this is not a rule.
The City provides life insurance and accidental death and dismemberment 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.
Symetra Life Insurance Company has been our vendor since July 2015, providing life insurance in the amount of $25,000 to all active employees covered under the City's group health plan; $2,500 for dependents of active employees; and, $10,000 for each City of Sparks retiree.
The current contract with Symetra Life Insurance Company terminates on June 30, 2018.
Our City’s health insurance broker/consultant – L/P Insurance Services sought bid requests from sixteen (16) companies. Twelve (12) declined to quote. Two (2) presented quotes that were not competitive. Two (2) offered competitive quotes: Symetra and Standard.
The City's current annual cost for Life Insurance is $62,387. Symetra Life Insurance Company, our current provider, presented a quote representing a 26.84% increase over the current rate and offered a twenty-four (24) month contract.
Standard Life insurance provided a quote of a 13.16% increase over our present rate, also for a twenty-four (24) month contract.
The Standard Life quote is 13.68% less than Symetra Life Insurance. However, we have contracted with both Standard and Symetra for several years and Symetra's customer service and claims processing is far superior. Staff is of the opinion that the additional $8,599 in expense for Symetra’s coverage is well worth the expense because of the superior customer service and claims handling.
1. The Council may choose to approve the purchase from Symetra Life Insurance Company as outlined by staff and approve the Contracts & Risk Manager to execute policy documents.
2. The Council may choose to direct the City Manager to purchase from Standard Life and approve the purchase.
3. The Council may direct the City Manager to provide alternatives to address providing this type of insurance to employees, dependents and retirees on the City's group health plan.
I move to approve the purchase of group life and accidental death and dismemberment insurance with Symetra Life Insurance Company for Fiscal Year 2019 and Fiscal Year 2020 in the amount of $79,704 per year and authorize the Contracts and Risk Manager to execute policy documents.
Analysis Life Insurance Renewal 6-11-2018.pdf