Hackensack council renews Sun Life stop-loss coverage after multi‑year spike in claims

Hackensack City Council on Dec. 29 approved Resolution 508‑25 to renew the city’s stop‑loss (reinsurance) contract with Sun Life, a decision council members said was necessary to preserve health coverage continuity after several years of unusually high claim payouts.

The vote, taken at a special meeting, was 4–0 with Councilman Carroll abstaining. Deputy Mayor Toomey, Councilwoman Clark‑Collins, Councilman Diaz and Mayor Gaines voted yes. The resolution, amended on the record before the vote, clarifies that the city’s $175,000 retention applies per claim (per medical condition/occurrence), not “per employee.”

City officials and the city’s insurance broker described the background for the renewal. Jim Mangan, who led the staff briefing, said Hackensack is self‑insured: the city pays claims up to a set retention and a stop‑loss carrier reimburses amounts above that threshold. He told council the city’s health benefits trust fund, established in 2018, peaked at about $1.5–$1.6 million but has been drawn down over multiple bad years and currently holds roughly $300,000.

“Because the budget…