01-20-2009 Regular School Board Meeting
Agenda Item #26


Title
2009 Stop Loss Renewal

Discussion

The School Board of Brevard County, Florida, purchases Stop Loss Insurance for the self-funded group health plan to protect against any individual catastrophic claim. The claims loss ratio for our stop loss insurer over the past two years has been 147 percent and 172 percent, respectively.  This recommendation is based on our desire to maintain the lowest premium possible while providing adequate protection for the health plan. 

The current contract and recommended renewal specifications are as follows: 

1.  Contract type (claims incurred/paid period)
     Current:  12/15; 2009 Renewal:  12/15

2.  Specific Deductible (per individual)
     Current:  $250,000; 2009 Renewal:  $325,000

3.  Advantage Deductible*: 
     Current:  $120,000; 2009 Renewal:  $310,000

4.  Premium:

                  Assumed 
                                     Employee Count     Current      Renewal

Single Monthly:                 4,928                  6.45              6.48
Family Monthly:                2,704                15.74            16.82
Estimated Annual:                                  892,159        928,977**

Percent Increase: 4

*Additional deductible paid by one or more individuals with paid claims exceeding the Specific Deductible before any reimbursement is due. If there are no claims that exceed the Specific Deductible, this amount stays in the self-funded health trust. 

**The renewal amount noted is for the calendar year. 

***The amount noted in the funding source is for the fiscal year.  One half of the amount is taken from 2008 and one half is taken from 2009. 

 



Recommendation
Approve the renewal for specific Stop Loss Insurance with Symetra Life Insurance Company effective January 1, 2009. 

Meeting Date(s)
Information - 12/9/2008
Consent after Information1/20/2009

Authority for Action
F.S. 768.28; 1001.42

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Other Sources

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
08-09$910,568Y72098500010027500772000

Contact
Susan G. Standley, extension 216