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 $1,406,294 and is comprised of individual stop loss of $1,375,735 and aggregate excess of $30,559.
FUNDING: Risk Management Cost Applied Fund.
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BUDGET SUMMARY: |
|
|
Total Estimated Cost |
|
$1,406,294 |
|
|
|
Funding |
|
|
Budgeted |
$1,406,294 |
|
New Funding |
$ |
|
Savings |
$ |
|
Other |
$ |
|
Total Funding Available |
$ |
|
Change To Net County Cost |
|
$1,406,294 |
Fiscal Impact/Change to Net County Cost:The FY 09/10 health program budget included
$1,406,248 for stop loss premium payments.
Background/Reason for Recommendation: The proposed renewal policy represents an
increase in costs of 17.5% over the previous year, less than the 25% increase Aon, our health benefits consultant, expected due to some large claims we are experiencing.
The policy will protect the County's self-insured medical and pharmacy benefit program for
specified excess losses during the policy period August 1, 2009 through July 31, 2010.
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, reimburses the health
benefit sub-fund up to $1 million in the event total costs for self-insured claims exceed
projections by 125% during the policy period. Finally, the third type of coverage, terminal
liability, will provide the health plan with protection against individual and aggregate losses
which occur through July 31, 2009, and which are invoiced and paid by the Blue Shield plan
during the months of August, September and October 2009.
It should be noted that the estimated amounts included in the attachments to this item are different than the budgeted amounts shown above. Symetra's estimates were based on 1200 employees, while current enrollment is only approximately 1164 employees. When the rates are applied to the actual number of enrolled employees, the annual premium is within the budgeted amount above.
Action to be taken following Board approval: Symetra will issue a renewal policy, the
Human Resources Director will sign all required implementing insurance documents in
order to maintain continuous insurance coverage for the Blue Shield Health Plan, and our
current excess insurance will remain in effect for the Blue Shield self-funded plan.
Contact: Lisa Hoaas x5576
Concurrences: Human Resources, CAO