SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize a contract for the purchase of Medical Stop Loss Insurance for claims above $225,000 from Voya Employee Benefits for one (1) year in an amount not to exceed $857,561.
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FISCAL IMPACT:
Funding for this action is in the FY2025 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☐ 1. Customer ☐ 2. Community
☐ 3. Workforce ☒ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☐1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☐ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☐ 3.3 Expand Highly Skilled Workforce
☒ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☐ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: Purchase of stop loss insurance for high-cost health claims supports fiscal responsibility by mitigating CapMetro’s risk if employees or family members covered by CapMetro’s self-insured health care plan experience annual claim costs exceeding $225,000 annually per claim.
BUSINESS CASE: Each year CapMetro works with Gallagher Benefits Services to assess the level of stop loss insurance recommended based on our large claims history. Gallagher then works with the insurance market to obtain quotes for the recommended stop-loss insurance. For Calendar Year 2025, CapMetro recommends increasing the stop loss limit from $200,000 to $225,000, based on the analysis of large claims history compared to the cost of stop loss insurance.
COMMITTEE RECOMMENDATION: The item was presented and recommended for approval by the Finance, Audit and Administration Committee on November 13, 2024.
EXECUTIVE SUMMARY: Gallagher Benefits Services has obtained quotes for stop loss insurance from United Healthcare, Voya Employee Benefits and High Mark (HM) Insurance Group. The price quote from Voya for $225,000 individual stop loss insurance is $310,887 less than the current stop loss insurance with Highmark Insurance Group and the lowest of the quotes received from bidders at the $225,000 individual stop loss level. The Stop Loss coverage provided by Voya Employee Benefits is underwritten by ReliaStar Life Insurance Company, a member of the Voya family of companies. Both Voya Financial and ReliaStar Life Insurance Company have an AM Best rating of A (Excellent). Voya Employee Benefits is an industry leader and one of the nation’s largest direct writers of excess risk (stop loss) insurance for more than 40 years. Voya Employee Benefits, a division of ReliaStar Life Insurance Company, also offers group life, voluntary and disability income insurance products through employers.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: CapMetro’s Procurement and Acquisition Policy lists insurance as an expense that does not require a Purchase Agreement
RESPONSIBLE DEPARTMENT: People and Culture
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
A1-2024-1327
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management recognize the fiscal responsibility to mitigate risks associated with large medical claims.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize a contract for the purchase of Medical Stop Loss Insurance for claims above $225,000 from Voya Employee Benefits for one (1) year in an amount not to exceed $857,561.
____________________ Date: ____________________
Secretary of the Board
Becki Ross