11-22-2016 Organization of the Board with Oath and Regular School Board Meeting
Agenda Item #44


Title
The School Board's Medical Stop Loss Insurance Policy Renewal

Discussion

The School Board's stop loss insurance policy is set to expire on December 31, 2016. We are currently negotiating the new policy to replace the expiring policy. We anticipate negotiations for this policy will be completed before the November 22, 2016 Board meeting, but pricing is unknown at this time.

A request for proposal was issued to the following Stop Loss carriers: AIG, CIGNA, HM Insurance, MunichRe, and Symetra.
Of the five carriers approached, only two provided a stop loss quote: AIG and CIGNA.The remaining carriers were not competitive and declined to quote. The current stop loss carrier, Sun Life, has provided a renewal offer and options.

The current annual premium paid for the 2016 plan year was approximately $579,555. We anticipate for the 2017 plan year renewal pricing to vary from a low of $509,834 to a high of $865,529. Once the policy is fully negotiated, we will bring the final pricing and terms including the deductible to the Board for consideration.



Recommendation

To grant the Superintendent authority to bind the School Board's Medical Stop Loss insurance policy once all pricing and terms are finalized.



Meeting Date(s)
Information - 11/22/2016
Consent after Information12/13/2016

Authority for Action
Board Policy 8710

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Operating - Other

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
2017UndeterminedYes73198500010027730772000

Contact

Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 620
Dr, Carol Kindt, Deputy Superintendent/Chief Human Resources Officer, ext. 200