City's "Stop Loss" Wager Results Unclear

San Angelo's City Council increased the amount the city would pay before stop loss insurance coverage would kick in from $125,000 to $150,000  The minutes from January 8, 2013 are less than clear on this change. 

APPROVAL OF MATTERS RELATED TO REQUEST FOR PROPOSAL HR-01-12:  DISCUSSION OF PROPOSALS SUBMITTED FOR REQUEST FOR PROPOSAL HR-01-12 FOR INDIVIDUAL AND AGGREGATE STOP LOSS INSURANCE 

SELECTION OF AMWINS FIDELITY AS THE BENEFIT PROVIDER RELATED TO REQUEST FOR PROPOSAL HR-01-12, AUTHORIZING STAFF TO NEGOTIATE A CONTRACT, AND AUTHORIZATION FOR THE CITY MANAGER TO EXECUTE SAID CONTRACT AND ANY RELATED DOCUMENTS 

Human Resources Director Lisa Marley presented background information.  A copy of the presentation is part of the Permanent Supplement Record.  Motion, to approve and select AmWins, including changing terms and related increased cost, as presented, was made by Councilmember Adams and seconded by Councilmember Hirschfeld. 

General discussion was held on the extension of the terms and analyzing the costs and terms for future years. A vote was taken on the motion on the floor. Motion carried unanimously.

Slides from the meeting reveal the missing details.

HR's Lisa Marley stated on January 8, 2013:

"We recommend increasing the deductible to $150,000. We've only hit stop loss seven times in the last five years. In the claim year for 2012 we had one claim that hit stop loss." 

Now that the year has nearly passed, how did Council and Marley do?  Lisa stated on December 3rd:

"This year we've had one of the biggest years in a long, long time in the number of people hitting stop loss."  

They cost the city $25,000 per head.  Also, the city's consultant Holmes Murphy helped negotiate down the huge stop loss increase for 2014 to 10%.  This is the same consultant who said the city would benefit by taking more risk in the stop loss arena.  It's not clear if Holmes Murphy's prediction came true.  That wasn't reported:

Last year's ten slide presentation on stop loss was reduced to a single slide for 2014.  I'm not ready to declare Holmes Murphy the "stop loss" hero yet, especially given they brought ACAP Health and their ridiculous cost sharing model into the mix.  Too little information has been shared to make that determination on both counts.