R-00-10-26-13F3 - 10/26/2000 RESOLUTION NO. R-00-10-26-13F3
WHEREAS, the City of Round Rock has duly advertised for bids for
stop loss reinsurance, and
WHEREAS, Mega Life and Health Insurance Company has submitted the
lowest responsible bid, and
WHEREAS, the City Council wishes to accept the bid of Mega Life
and Health Insurance Company, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the bid of Mega Life and Health Insurance Company for stop
loss resinsurance is hereby accepted as the lowest responsible bid.
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended, and the Act .
RESOLVED this 26th day of October, 2000 .
Z.
4ROAV6STLUKA, Jltl, Mayor
ATTEST: City of Round Rock, Texas
&LAND, City SecretaryJ
K:\WPMCS\RESOLUTI\R01026F3.WPD/sc
_ i f
DATE: October 18, 2000
SUBJECT: City Council Meeting—October 20, 2000
ITEM: 13.17.3. Consider a resolution accepting the bid of Mega Life and Health
Insurance Company for stop loss reinsurance. The stop loss
reinsurance provides coverage for the City's health benefit plan
claims payments,which exceed limits the City has chosen to self-
insure. This coverage protects the City's self-funded plan from
catastrophic financial losses.
Funding:
General Fund, Water/Wastewater Utility Fund
Cost:
The cost of this insurance is a function of the number of employees and dependent units
covered. For 460 employees and 160 dependent units the cost is $423,979.
Benefit:
Reinsurance protects the City from catastrophic financial loss.
History:
The City's self-insured medical plan has three principal components: a health care provider
(St. David's Health Network and Round Rock Hospital), claims administration(HealthFirst),
stop loss reinsurance (Mega Life). The City has no prior history with Mega Life.