12-07-2010 Regular School Board Meeting
Agenda Item #24


Title
2011 Medical Plan Stop-Loss Contract Renewal

Discussion

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 per-claimant Specific Deductible for expiring plan year 2010 is $350,000 per individual with an additional one-time annual deductible (Advantage Deductible) of $350,000.  The current annual fixed premium is approximately $996,000.   

 

The current stop-loss insurance is provided through Symetra Financial. A renewal quote for the existing deductible levels would require an 11% rate increase.  Based on the size of our population and the improvement in our large claims activity, we are recommending to keep the fixed premium rates at the current levels and increase the Specific Deductible to $375,000 per individual.  Year-to-date 2010 for the current plan year, we have one individual with paid claims at $354,000. 

 

The stop loss contract currently covers claims incurred during the plan year (January through December) that are paid by March 31st of the following year (this is called a 12/15 basis).  For 2011, our stop loss carrier will cover claims incurred in the twelve-month plan year; however, claims will be eligible for reimbursement if they are paid through June of the following year, which is a three-month enhancement to our current arrangement. 



Recommendation

Renew the stop loss coverage with Symetra Financial effective January 1, 2011 as follows:

  

 

Current                 

(12/15 Basis)

2011 Renewal

(12/18 Basis)

Specific Deductible

$350,000

$375,000

Advantage Deductible

$350,000

$350,000

Employee Only Premium

$6.48

$6.48

Family Premium

$16.82

$16.82

Financial Impact

 

Current                

2011 Renewal

Total Fixed Premium

$996,287

$996,287

Maximum Cost with Advantage Deductible

$1,346,287

$1,346,287

Fixed Cost Inc

 

0%

Overall Inc

 

0%

 



Meeting Date(s)
Information - 11/16/2010
Consent after Information12/7/2010

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
10-11$0Yes7XX98500010027500772000

Contact
Susan Standley, Director, Compensation & Benefits, x. 216