Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 9/13/2022
ALL
Item Creation Date: 8/25/2022

ARA – Medical Professional Liability Insurance

Agenda Item#: 14.


 
                               
Summary:

ORDINANCE accepting the proposal from EVANSTON INSURANCE COMPANY (MARKEL) and approving and authorizing purchase of Medical Professional Liability Insurance - 1 Year - $75,539.02 - Property & Casualty Fund

Background:

The Administration & Regulatory Affairs Department (ARA) and the Houston Health Department (HHD) recommend that City Council approve the annual Medical Professional Liability Insurance policy proposed by Evanston Insurance Company (Markel). The annual policy term begins October 3, 2022. The proposed policy provides Medical Professional Insurance for the Houston Health Department, Nurse Practitioners, and Physicians providing general medical care to the citizens of the city.

 

Medical Professional Liability Insurance is required by the Texas Medicaid and CHIP Managed Care Organization (Medicaid MCO). Therefore, the Houston Health Department must maintain Medical Professional Liability Insurance to participate in the Medicaid MCO Program and bill for the medical services provided to the citizens of the city.

 

The recommended funding of $75,539.02 includes the premium of $52,793.02 for the policy term and $22,746 as contingent premium for coverage of Medical Professionals added during the policy year.

 

The City’s Insurance Broker of Record, McGriff, Seibels and Williams, Inc. (McGriff), solicited proposals from insurance carriers in the global insurance marketplace. The recommended Medical Professional Liability Insurance policy proposed by Evanston Insurance Company (Markel), is the only proposal that meets the minimum policy specifications.  Terms of the proposed policy are:

 

  • Term: October 3, 2022 to October 3, 2023
  • Insurance Carriers: Evanston Insurance Company (Markel)
  • Total Premium Cost: $75,539.02 ($52,793.02 Premium + $22,746 Contingency Premium)
  • Insured Limit: $1,000,000 (Claims Made)
  • Aggregate Limit: $3,000,000
  • Deductible: $5,000 Each Claim
  • Type of Coverage: Medical Professional Liability Insurance for third party liability claims made against the Houston Health Department and specified Medical Professionals.

 

Fiscal Note:

Funding for this item is included in the FY23 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

 

Estimated Spending Authority:

Department

FY 2023

Out Years

Total

Administration & Regulatory Affairs

$75,539.02

$ -

$75,539.02

 

Departmental Approval Authority:

 

  

 

__________________________­­­­­­­­­_____________ __________________________________________

Tina Paez, Director                                          Stephen Williams, Director

 Administration & Regulatory                         Houston Health Department

Affairs Department

Amount and Source of Funding:

$52,793.02 Policy Premium

$22,746.00 Contingency Premium

$75,539.02 Total Proposed Premium -- Property / Casualty Fund: 1004

Contact Information:

Naelah Yahya               Phone: (832) 393-8530

Tina Paquet                  Phone: (832) 393-8792

Stephen Williams          Phone: (832) 393-5001

ATTACHMENTS:
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