Title
Human Resources Department, Risk Management Division, recommending the Board accept the renewal offer from Symetra Life Insurance Company at the current specific stop loss level of $175,000; and authorize the Human Resources Director to sign all required implementing insurance documents to maintain continuous insurance coverage for the Blue Shield Health Plan, noting the estimated annualized premium cost is $1,211,187 and is comprised of individual stop loss of $1,180,268 and aggregate excess of $30,919.
RECOMMENDED ACTION: Approve.
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BUDGET SUMMARY:
Total Estimated Cost $1,211,187
Funding
Budgeted $1,230,118
New Funding $
Savings $
Other $
Total Funding Available $
Change To Net County Cost $(18,931)
Fiscal Impact/Change to Net County Cost: The FY 08/09 health program budget included $1,230,118 for stop loss premium payments. The $1,211,187 renewal proposal is $18,931 less than budgeted.
Background/Reason for Recommendation: The proposed renewal policy represents an increase in costs of 12% over the previous year, almost 50% less than the 20-25% increases Aon, our health benefits consultant, is seeing on average this year with other clients. Aon explored the possibility of increasing the individual deductible to $200,000, and found that it would be more beneficial to renew the current Stop Loss policy at the $175,000 Specific Stop Loss level for the 2008/2009 plan year.
The policy will protect the County's self-insured medical and pharmacy benefit program for specified excess losses during the policy period August 1, 2008 through July 31, 2009. Three kinds of coverage are included and described as follows. The first coverage, individual stop-loss, reimburses the health benefit sub-fund for all costs above $175,000 per individual member of the Blue Shield Plan when those costs are paid by the County during the policy period. The second, aggregate excess insurance, reimb...
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