Title:
Consider and take action on a resolution authorizing an amendment to the existing agreement with Blue Cross Blue Shield for employee stop loss insurance for the period October 1, 2022, through September 30, 2023 (Director of Human Resources and Civil Service)
Background:
Approval of this item will authorize an amendment to the existing agreement with Blue Cross Blue Shield for employee stop loss insurance for the period of October 1, 2022, through September 30, 2023 and authorize the City Manager to execute all contracts related to this program.
Loss Ratio History
Through August 2022 the City has 7 claimants in excess of the $125,000 Specific deductible totaling $2,193,744 in claims. The loss ratio for Stop Loss premium versus claims for the current plan year is 190.4% for 2020-2021 plan year the loss ratio was 120.2% and for 2019-2020 it was 40.4%.
Stop-Loss Insurance
Blue Cross Blue Shield renewal proposed an increase of 15.8%, from $1,244,385 to $1,438,435. This is due to poor claims experience of the City’s plan and two ongoing large claimants. Additionally, there are 5 other large claimants with claims more than $75,000 for the current plan year. The specific deductible and aggregate maximum remain unchanged.
Plan Year Specific Deductible Specific Reimbursements Collected Premium Loss Ratio
2019-2020 125,000 428,923 1,060,954 40.4%
2020-2021 125,000 1,216,538 1,011,698 120.2%
2021-2022 125,000 2,193,744 1,152,022 190.4%
Budgetary Impact
The stop loss premiums fall in line with the City’s proposed 2022-2023 budget.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. STOP LOSS REINSURANCE RENEWAL EXHIBIT
FUNDING
{x} Funds are available from Employee Benefit Fund Health Insurance account 40301650-54650
STRATEGIC PLANNING
{x} NOT APPLICABLE