Agenda Item #24
2013 Healthcare Trust Stop-Loss Renewal
Brevard Public Schools purchases stop-loss insurance coverage for the self-funded group health plan to limit the financial exposure for any individual member incurring a catastrophic claim. The Specific Deductible for expiring plan year 2012 is $400,000 per individual, with an additional one-time annual deductible (Advantage Deductible) of $387,000.
The current stop-loss insurance coverage is provided through Symetra Financial. A renewal quote for the existing coverage was provided with a 14.6% rate increase. However, after identifying and removing all broker commissions paid and increasing the Specific Deductible by $25,000, we are able to renew coverage at a slight decrease in premiums.
Based on our analysis, we believe the District has the potential to save money by taking additional risk on the claims. The following represents the number of claimants over $400,000 for the past four (4) plan years:
Renew the stop-loss coverage with Symetra Financial effective January 1, 2013 as follows:
*If there are no claimants over $425,000, then the maximum premium is $607,124.
Contingent upon actual claims experience in 2013, the District has the potential to save up to $55,252. If there are more than 3 individuals with paid claims in excess of $425,000, there is a potential cost up to $25,000 for each of those individuals.
Information - 12/11/2012
Consent after Information1/22/2013
Authority for Action
F.S. 768.28; 1001.42
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Susan Standley, Director of Compensation & Benefits x216