Agenda Item #47
The School Board's Employee Stop-Loss Insurance Policy Renewal
The School Board’s current stop-loss insurance agreement is set to expire on 12/31/2015. The Employee Benefits and Risk Management department engaged Willis Consulting and Brokerage to solicit a bid seeking insurance carriers interested in providing health insurance stop-loss coverage for the district’s health insurance trust fund. Ten carriers responded to the original solicitation. Nine of the ten carriers were not competitive with our current carrier’s renewal pricing, as the closest premium increase was nearly 25% higher then the pricing offered by Sun Life Financial. Sun Life Financial was the most competitive proposer with a price increase of 15.1% from our current pricing. The current proposal maintains the current deductible per claim of $425,000 with a premium cost of $577,979. This is a $75,671 increase from last year as the same deductible of $425,000 required a premium cost of $502,308. The attached documentation from Willis Consulting and Brokerage outlines the proposal as well as the pricing offered by all ten carriers that submitted a proposal along with Sun Life Financial’s offer. We are still evaluating our deductible levels to see if an increase in the deductible will create an issue with the trust fund. Should we select a higher deductible in order to lower our premium cost I will make that recommendation at the Board meeting set for December 8, 2015. The current proposed pricing is based on the same deductible in effect for 2015.
Approve the 2016 Health Insurance Stop Loss Insurance with Sun Life Financial insurance.
Information - 11/17/2015
Consent after Information12/8/2015
Authority for Action
Board Policy 3420
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 620
Dr. Debra Pace, Associate Superintendent, Office of Human Resources Services, ext. 200
Dr. Desmond K. Blackburn, Superintendent
Attachment: BPS 2016 Stop Loss Marketing Analysis - FINAL.pdf