Council selects Redwood Empire Municipal Insurance Fund to avoid an employee coverage lapse

Staff told council that FRMS, the city's prior self‑insured pool, experienced roughly "$11,000,000 in claim losses" and that members were facing clawbacks; staff said FRMS had signaled termination of medical coverage effective Dec. 31 and a projected rate increase of about 60% if continued. To avoid a lapse in coverage for employees, staff solicited multiple quotes from private brokers and self‑insured pools and recommended participation in the Redwood Empire Municipal Insurance Fund (REMF) as a near‑term option.

City staff reviewed differences between EPO and PPO plan designs, enrollment timing constraints and the tradeoffs between a private broker (higher, fixed premium but lower assessment risk) and participation in a self‑insured pool (lower near‑term premium but potential exposure to assessments). A council motion to "approve the selection of the Redwood Empire Municipal Insurance Fund" and authorize the city manager to execute the participation agreement passed by voice vote.

Council members asked staff to include employees in enrollment conversations and to confirm that no coverage gap will occur Jan. 1. Staff described a short timeline for implementation and said they would coordinate enrollment support for employees.

Direct vote information: a motion to approve REMF was made, seconded by Council Member Napier, and passed by unanimous voice vote in the meeting record.