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December 15, 2020 School Board Meeting
The School Board's Medical Stop-Loss Insurance policy Renewal
Meeting Date(s)
Consent w/o Information - 12/15/2020
Consent Type
Without Information

The School Board's stop-loss insurance policy with Cigna is set to expire on December 31, 2020. The district’s current stop-loss policy was procured in 2019 at a rate of $1,300,587. current policy has an aggregate limit of $387,000 excess a $425,000 per claimant deductible. Aon Health & Benefits, the district’s broker of record, issued a solicitation to renew the coverage as is currently in place with options to replace the coverage using an increased per claimant deductible of $450,000 and $475,000, respectively. Nine stop-loss carriers initially responded to the solicitation. Six carriers declined to provide a quote indicating their pricing would not be competitive or stating the risk was not in line with their underwriting practices. three carriers that provided a quote are Cigna, Tokio Marine HCC, and Voya. All three carriers provided a renewal for the current coverage as well as pricing with increased per claimant deductibles as requested. most competitive carrier for renewal and replacement was Cigna as they provided the lowest annual premium and the best terms for all three options.


Due to current market conditions, the district feels that the current policy should be replaced with the following terms, a $387,000 aggregate excess a $450,000 per claimant deductible for a premium cost of $1,689,569. This is an increase in deductible in the amount of $25,000 per large claim, but is more in line with market conditions. Though the per claimant deductible with this policy has increased, the premium cost is $196,486 less than renewing the current expiring policy.


Grant the Superintendent authority to bind the School Board's Medical Stop-Loss insurance policy for a premium cost of $1,689,569.

Authority for Action
Board Policy 8710
Involves Expenditure of Funds Directly in the Classroom
Source of Funding

Operating - Other
Financial Impact
FY Amount Budgeted Fund Cost Center Project Function Object Program
2021 TBD YES 731 9850 001002 7730 772 000
Legal Counsel Review
Mark Langdorf, Director, Office of Employee Benefits and Risk Management, ext. 11620 Dr, Beth Thedy, Deputy Superintendent/Chief Human Resources Officer, ext. 11200
2021 Aon Stop Loss Marketing Analysis - 12-15-2020.pdf
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