Trust hears detailed presentation on self-insured medical plan proposal with stop-loss protection; decision deferred

City employee benefits consultant Lance Penley and benefits staff presented a recommendation Thursday to switch the city's medical and pharmacy coverage to a self-insured arrangement administered by UnitedHealthcare, with specific and aggregate stop-loss insurance (attachment point recommended at $200,000). Trustees removed the medical/pharmacy item from the package for separate consideration and recessed the special meeting until the following day to allow additional analysis on premium impacts and plan design.

The recommendation and rationale: Lance Penley, senior vice president for employee benefits at McGriff Marsh McLennan Agency, explained the difference between fully insured and self-funded health plans and said the recommendation is to move to a self-funded program with UnitedHealthcare effective Oct. 1, 2025. "A self insured health plan is a funding arrangement in which the employer assumes direct responsibility for cost enrolled, cost of enrollees in the medical in medical…