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Council authorizes city manager to join Jefferson Health Plan consortium for stop‑loss coverage (Res. 25‑83)
Summary
Council approved Resolution 25‑83 authorizing an intergovernmental membership agreement with Jefferson Health Plan to participate in a consortium for stop‑loss coverage. Staff said the arrangement should lower stop‑loss premiums by about 5% and smooth year‑end claim volatility that previously required supplemental funding.
Delaware City Council on Oct. 27 approved Resolution 25‑83, authorizing the city manager to sign an intergovernmental membership agreement with Jefferson Health Plan to participate in a self‑insurance consortium providing stop‑loss coverage.
Staff described the change as a recommendation from the city’s new broker intended to lower the city’s stop‑loss premium cost and reduce volatility in year‑end claims funding. Under the agreement, the city would maintain its self‑insured status but participate in a pooled stop‑loss program that staff said would decrease the premium by an estimated five percent and mitigate delays in reimbursement for large claims.
Finance and HR staff said the consortium structure will replace the previous practice where the city paid large claims upfront then awaited reimbursement, sometimes months later, and that the new approach creates a reserve mechanism. Council voted to approve the resolution by roll call.
