RESO 1985-20 - Medical Benefit Plan-TrustRESOLUTION NO. 85 -20
A RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS, AUTHORIZING
THE CITY TO SELF -FUND HEALTH AND DENTAL INSURANCE FOR THE
EMPLOYEES AND DEPENDENTS OF THE CITY OF HUNTSVILLE AND
APPOINTING SMITH ADMINISTRATORS AS THE SELF - FUNDING ADMIN-
ISTRATOR
WHEREAS: Significant increases in insurance rates for employee and
dependent coverage generated a need to research reduced
coverage and self - funding as means of keeping premiums
affordable; and
WHEREAS: Under the self- insurance plan, an administrator examines and
pays the claim for the City and stop loss insurance policies
are purchased by the administrator to cover the individual
stop loss and the aggregate stop loss; and
WHEREAS: These policies are less expensive since the City is paying
the claims to the stop loss level and all claims over this
level are funded by the insurance carrier and the administrator
charges a fee for handling the city's policies and paying claims;
and
WHEREAS: Self- insurance plans are advantageous since the excess in premium
funds above the fixed cost and claims cost are returned to the
city;
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of
Huntsville, Texas, that the City self -fund health and dental
insurance for the employees and dependents and that SMITH
ADMINISTRATORS be appointed as the self- funding administrator,
based on the least amount of exposure or liability for the
City in the event of the worst possible claims; and that
Smith Administrators utilize the pre - approval of elective
benefits paid out 100% and that they pay at 50% of the
normal and customary level for failure to obtain pre -
approval.
PASSED AND SIGNED on this the day of
985.
THE CITY OF HUNTSVILLE, TEXAS
e Monday, Mayor