To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Matt Gohl, Assistant Town Manager
Title
Resolution Accepting the Offer from Symetra Life Insurance Company to the Town of Castle Rock for Stop Loss Insurance Coverage for Calendar Year 2026
Body
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Executive Summary
As part of the Town’s total compensation package, Castle Rock provides a health care plan for Town staff. The Town has successfully utilized a self-insured business model to provide health coverage and is continuing this practice for 2026. Being self-insured has many benefits, two of which are having greater flexibility and control over our health plan and having the ability to manage plan dollars when we are having both good claims years and challenging claims experience.
As part of its self-insured plan, the Town purchases “stop loss” coverage, also referred to as “reinsurance,” to protect the organization from large-dollar claims. This provides the Town a guarantee, or “safety net,” from bad years, which happen from time to time.
The Town’s 2026 individual stop loss deductible is set at $120,000 per covered individual, the same as in 2025. Any medical claims exceeding that amount are covered by the stop loss insurance. Our 2026 quote for stop loss coverage with Symetra totals $2,695,444, an amount requiring Town Council approval. This represents coverage for an estimated total maximum cost of $14,063,421 for the Town’s 2026 health plan, a 19.7% overall increase from 2025.
Discussion
In 2025, in collaboration with Novo Benefits, Town’s benefits consultant, conducted an RFP related to the Town’s historical dollars spent on claims and Symetra came back with the lowest overall quote based on claims experience and laser liability. Symetra provided the most competitive quote to earn the Town’s business.
The 2025 contract rate for stop loss coverage with Symetra was $1,768,188. The contract amount for stop loss coverage with Symetra for 2026 will not exceed $2,695,444.
Moving forward with stop loss coverage with Symetra for 2026 allows the Town to continue to manage its health care plan in a manner that realizes the best overall stop loss renewal rate for the 2026 plan year, which protects the Town and its employees from large catastrophic claims costs.
Budget Impact
The expenditure will come from the Employee Benefits Fund in an amount not to exceed $2,695,444 for stop loss (reinsurance) coverage for the 2026 benefits plan year.
Proposed Motion
“I move to approve a Resolution authorizing Town staff to execute a contract with Symetra Life Insurance Company for stop loss insurance services.”
Attachments
Attachment A: Resolution
Exhibit 1: Symetra Stop Loss Quote
Exhibit 2: Stop Loss Schedule of Benefits and Stop Loss Rate Cap Endorsement