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).

This ordinance ratifies and authorizes 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. The contract has a not-to-exceed amount of $5,811,278.00 for a one-year term.

Key Details:

• Purpose: To provide stop-loss insurance for employee health claims, capping individual claims at $185,000 and the aggregate plan costs at 25% above expected costs (with a $1,000,000 annual cap).
• Contractor: United Healthcare Insurance Company.
• Contract Amount: Not-to-exceed $5,811,278.00 for one year.
• Funding: Account 850500.6712. The budgeted amount matches the not-to-exceed amount.
• Background: The city previously contracted with Stealth Partner Group, LLC, which administered coverage through United Healthcare. After the contract with Stealth's broker (McGriff) ended, the city now directly pays United Healthcare, with Lockton-Dunning serving as the new benefits consultant. This ordinance ratifies the expenditure and continues coverage while a new solicitation is prepared.
• Effective Date: Immediately upon passage and approval.