Approves the award of a contract to Aetna Life Insurance Company for Medical Stop Loss coverage. Aetna Life Insurance Company submitted the only proposal to the Request for Proposal and was found to be a responsive and responsible bidder. The contract provides Medical Stop Loss coverage for Lee County and its participating entities beginning January 1, 2022. The initial contract is for one year with three one-year renewal options.

Anticipated savings for the new contract are $276,248 or a reduction of 10.4%. Current contract is employer paid at an annual premium of approximately $2,663,163 or $51.48 per employee per month. The submitted proposal is $2,386,914 annually or $46.14 per employer per month.

Stop Loss Insurance provides protection for the County's self-funded employee benefit plan against catastrophic or unpredictable losses. Aetna assumes liability for losses arising from medical events with costs in excess of $425,000.

On the established deadline of October 19, 2021 for Request for Proposal No. RFP210494CJV, a single proposal was received. As part of the due diligence process, Procurement reached out to the two plan holders who did not submit proposals. One firm was a broker, and the other a provider with only private sector experience.  The single proposal submitted by Aetna Life Insurance Company was considered by the Evaluation Committee on November 2, 2021.  On the basis of the information submitted by the firm in their proposal, the Committee unanimously voted to enter into negotiations with Aetna Life Insurance Company. The initial contract agreement term will be for one year, beginning January 1, 2022, with three one-year renewal options upon mutual agreement by both parties. Staff to negotiate the agreement/contract to be reviewed and approved by County Administration, the County Attorney and Human Resources Director before presenting to the Chair for execution.

Current contract  is employer paid at an annual premium of approximately $2,663,163 or $51.48 per employee per month. The submitted proposal is $2,386,914 annually or $46.14 per employer per month. Anticipated savings for the new contract are $276,248 or a reduction of 10.4%.

Stop Loss Insurance provides protection for the County's self-funded employee benefit plan against catastrophic or unpredictable losses. Aetna assumes liability for losses arising from medical events with costs in excess of $425,000.