HomeMy WebLinkAboutExhibit 1 - Agenda Information Sheet AmendmentCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Christine Taylor
DATE: March 3, 2026
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
ratifying the expenditure of funds and authorizing the City Manager to execute a contract with United
Healthcare Insurance Company, for Health Individual and Aggregate Stop Loss Insurance for the Human
Resources Department; providing for the expenditure of funds therefor; and providing an effective date
(RFP 8339 – for the one (1) year not-to-exceed amount of $5,811,278.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
Individual Stop Loss (ISL) insurance provides a cap on an individual member basis (employee, retiree,
dependent) at a pre-determined amount (the City’s current threshold is $185,000). Therefore, after an
individual plan member’s medical claims exceed $185,000 in a calendar year, the stop-loss company begins
reimbursing the City for covered expenses. The City’s current ISL rate is $273.34 per employee per month
(PEPM).
Aggregate stop loss (ASL) provides a cap for the health plan in totality. If the total health care costs for all
members exceed the expected plan costs (as calculated by the stop-loss insurance company based on month-
by-month enrollment levels) by 25%, then the stop-loss insurance company reimburses the City for those
costs, up to a maximum of $1,000,000 in a calendar year. The City’s current ASL rate is $5.78 PEPM.
In 2023, the City awarded the Individual and Aggregate Stop Loss Insurance contract to United Healthcare
(UHC), based on a proposal submitted through Stealth Partner Group (Stealth). At that time, McGriff,
Seibels, & Seibels & Williams (McGriff) served as the City’s benefits broker, and Stealth acted as the stop-
loss consultant supporting McGriff.
In November 2024, the City’s contract with McGriff ended. With the end of that contract, Stealth should
no longer have been associated with the City. In March 2024, the Human Resources Department entered
into a new agreement with Lockton-Dunning Series of Lockton Companies, LLC (Lockton) to serve as the
City’s benefits consultant. Under this agreement, Lockton provides stop-loss consulting services and
manages the purchase of Stop Loss Insurance and Aggregate Stop-Loss Insurance directly through United
Healthcare to help mitigate the risks associated with large claims.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
The City is requesting to ratifying the expenditure of funds and contract authority to UHC.
RECOMMENDATION
Award a contract with United Healthcare Insurance Company, for Individual and Aggregate Stop Loss
(Reinsurance) Insurance for the Human Resources Department, for the one (1) year not-to-exceed amount
of $5,811,278.
PRINCIPAL PLACE OF BUSINESS
United Healthcare Insurance Company
Minnetonka, MN
FISCAL INFORMATION
These services will be funded from account 850500.6712. Requisitions will be entered on an as-needed
basis. The budgeted amount for this item is $5,811,278.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Ordinance
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Sara Kjos, 940-349-7864.
Legal point of contact: Leah Bush at 940-349-8333.