R-2018-6083 - 11/20/2018 RESOLUTION NO. R-2018-6083
WHEREAS, the City of Round Rock has previously entered into an Administrative Services
Agreement ("Agreement") with Aetna Life Insurance Company ("Aetna") for Stop Loss insurance on
December 7, 2017 by Resolution No. R-2017-4987, and
WHEREAS, the City Council desires to renew said Agreement with Aetna, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the Council hereby authorizes renewal of the Administrative Services Agreement with
Aetna for insurance coverage for the guarantee period of January 1, 2019 through December 31, 2019
as set forth in the Stop Loss Renewal document from Aetna attached as Exhibit "A."
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
RESOLVED this 20t1i day of November, 2018.
Z A /
CRAIGO rck�,
ayor
City of oundexas
ATTEST:
W-AL- KW
SARA L. WHITE, City Clerk
0112.1804;00413161/ss2
EXHIBIT
Stop Loss Renewal
City of Round Rock Aetna Life Insurance Company
January 1.2019 through December 31.2019 Custnmer Number-819919
Firm Stop Loss Quote
-This exhibit outlines your firm renewal rates effective January 1,2019.
-Pricing assumes plan enrollment of 835 employees. If actual enrollment varies by more than 10%in
total and/or the plan design changes we reserve the right to readjust the stop loss premium.
-In an environment where healthcare costs are increasing,maintaining the same deductible shifts more of the claim
cost to the stop loss provider.
-To help reduce the effect of leveraging,it is recommended that a plan sponsor consider increasing their
Stop Loss deductible to keep pace with medical trend.
- Please refer to the stop loss policy for detailed Stop Loss information.
Current Firm Renewal Option$250K ISL Option$300K ISL
STOP LOSS COVERAGE SPECIFICATIONS 1/1/2018 1/1/2019 1/1/2019 1/1/2019
Policy Period Length(months): 12 12 12 12
Number of Employees Covered Under Stop Loss: 812 835 835 835
Producer Compensation: 0.0% 0.0% 0.0% 0.0%
Terminal Liability Option: None None None None
Claims Paid Basis for Medical Coverages: Cleared Cleared Cleared Cleared
Claims Paid Basis for APIvI Rx coverage is on a cleared basis
INDIVIDUAL STOP LOSS COVERAGE SPECIFICATIONS
Individual Stop Loss Level: $200,000 $200,000 $250,000 $300,000
Contract Type: Paid Paid Paid Paid
Coinsurance%: 100% 100% 100% 100%
M/N Claims Apply to ISL(Aetna Administered only): Yes Yes Yes Yes
Ric Claims Applied to ISL(Aetna Administered only): Yes Yes Yes Yes
Individual Specific Stop Loss Limits(Lasering): No No No No
Individual Lifetime Stop Loss Payment Amount: Unlimited Unlimited Unlimited Unlimited
Reimbursement Method: Immediate Immediate Immediate Immediate
AGGREGATE STOP LOSS COVERAGE SPECIFICATIONS
Aggregate Stop Loss Percentage: 125% 125% 125% 125%
Contract Type: Paid Paid Paid Paid
Maximum Annual ASL Payment Amount: $1,000,000 $1,000,000 $1,000,000 $1,000,000
Reimbursement Method: Monthly Budget Feature Monthly Budget Feature Monthly Budget Feature Monthly Budget Feature
Prior Carrier Runoff Cap: $0 50 $0 $0
Total Claims Applied to Aggregate Stop Loss: $10,489,422 $10,087,I75 $10,207,114 $10,290,862
Benefits that apply to ASL-Medical: $7,524,589 $7,380,237 $7,380,237 $7,380,237
Benefits that apply to ASL-Drug: $2,964,833 $2,706,938 $2,706,938 $2,706,938
Lasering Adjustment: $0 $0 $0 $0
Pooling and Coinsurance Adjustment: $0 $0 $119,939 $203,687
FINANCIAL INFORMATION
Stop Loss Premium: $1,275,197 $1,430,656 $1,141,078 $925,447
State Assessment Fee $0 $0 $0 $0
Total Stop Loss Premium: $1,275,197 $1,430,656 $1,141,078 $925,447
Total Premium(PEPM)Composite Rate: $130.87 $142.78 $113.88 $92.36
Individual Stop Loss premium as%of Total Premium: 93.85% 95.98% 94.90% 93.66%
Stop Loss Aggregate Limit*: $13,111,778 $12,608,969 $12,758,893 $12,863,578
Stop Loss Aggregate Limit(PEPM)Composite Factor: $1,345.63 $1,258.38 $1,273.34 $1,283.79
ISL rate: $124.58 $137.04 5108.07 $86.50
ASL rate: $6.29 $5.74 $5.81 55.86
*Minimum Stop Loss Aggregate Limit will be set using the first month enrollment x Stop Loss Aggregate Limit(PEPM)Composite Factor x tl
of contract Months.
Premium rates are billed and Aggregate Factors are administered on a composite basis.
May 2013 www.aetna.com Page 1