775-353-5555
431 Prater Way Sparks, NV United States
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Sparks City Council Meeting 6/22/2020 2:00:00 PM
Meeting Link: https://zoom.us/j/93096918084Meeting Dial-in #: 1-669-900-6833 Meeting ID: 930 9691 8084
General Business: 9.5
Total Costs: $72,500.00|
Fund: Group Insurance Self- Insurance Account: 603085 Program: Provider Contracts in Group Health Fund (050436) Amount: $72,500.00 Budget Status: Budget Exists |
A Business Impact Statement is not required because this is not a rule.
The City, under the Group Health Plan, provides life insurance and accidental death and dismemberment insurance. The benefit is provided through our current vendor, Symetra Life Insurance.
The benefit level is $25,000 to all active employees covered under the City's Group Health Plan; $2,500 for dependents of active employees under the City’s Group Health Plan; and $10,000 for each City of Sparks retiree covered under the City’s Group Health Plan. Symetra is the current vendor for this service.
The current agreement with Symetra expires on June 30, 2020.
Background:
Life and Accidental Death and Dismemberment Insurance is a benefit offered to employees and retirees through the City’s Group Health Plan.
Our current provider, Symetra Life Insurance Company provides this service. The benefit amount is $25,000 to all active employees covered under the City's Group Health Plan; $2,500 for dependents of active employees covered under the City’s Group Health Plan; and, $10,000 for each City of Sparks Retiree covered under the City’s Group Health Plan.
To maintain this benefit for employees and retirees when the current agreement with Symetra expires on June 30, 2020, the City’s health insurance broker – L/P Insurance (LP) sought bid requests.
Analysis:
LP received quotes from two (2) life insurance vendors: Symetra and Standard Life Insurance companies.
The City's current annual cost for Life Insurance is $88,061. Symetra Life Insurance Company, our current provider, presented a renewal quote representing a 0% increase to the current annual premium and a rate guarantee for twelve (12) months.
However, Standard Life Insurance provided a quote decreasing our annual payment to $72,500 – a 17.67% reduction over the present rate and Standard Life provided a rate guarantee of thirty-six (36) months – which will represent a savings to the City of $46,683 over three (3) years.
We have contracted with both Standard and Symetra for several years and Standard is our current vendor for Long-Term Disability insurance. Both agencies provide good customer service. However, staff is of the opinion that the savings as well as the benefit of a thirty-six (36) month agreement for our Life Insurance services outweighs the renewal option from Symetra Life Insurance.
Should the Council approve this vendor change, beginning July 1, 2020, Standard Life Insurance will provide claims processing and customer service for all life insurance claims to employees and retirees.
Alternatives:
1. Council may choose to approve the proposed participation agreement with Standard Life Insurance as outlined by staff and allow the City Manager to execute policy documents.
2. Council may direct the City Manager to provide alternatives to staff.
Recommended Motion:
I move to approve participation in an agreement with Standard Life Insurance and authorize the City Manager to execute policy documents.
Attached Files:
COS Life - Final Renewal Analysis.pdf
