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November 16, 2021 Organization of the Board/Regular School Board Meeting
The School Board's Medical Stop-Loss Insurance Policy Renewal or Replacement
Meeting Date(s)
Consent w/o Information - 11/16/2021
Consent Type
Without Information


The School Board's stop-loss insurance policy with Cigna is set to expire on December 31, 2021. The district’s current stop-loss policy was procured in 2020 at a rate of $21.88 per employee per month (PEPM), with an estimated annual premium of $1,624,459 based on 6,187 covered employees.  The current policy has an aggregate limit of $387,000 excess a $450,000 per claimant deductible.   Lockton, the district’s broker of record, issued a solicitation to renew the coverage as is currently in place with alternative options to replace the coverage using an increased per claimant deductible of $500,000.  Ten stop-loss carriers responded to the solicitation.  Eight carriers declined to provide a quote indicating their pricing would not be competitive. One carrier, Sun Life, declined to quote firm. The only carrier that provided a firm quote was Cigna. Cigna provided a renewal for the current coverage as well as pricing with increased per claimant deductibles as requested.  This also included $1.6 million laser coverage.  

Due to current market conditions, the district feels that the current policy should be replaced with an alternative option with the following terms, a $387,000 aggregate excess a $500,000 per claimant deductible for a premium cost of $23.63 PEPM, an estimated $1,754,386 in annual premium based on 6,187 covered employees. This represents an 8% increase to current stop loss rates.  Though the per claimant deductible with this policy has increased, the premium cost is $354,886 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 $23.63 PEPM, an estimated annual premium of $1,754,386 based on a current count of 6,187 covered employees.

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
2022 $1,754,386 No 731 9850 001002 7730 772 000
Legal Counsel Review
Antonia Scipio, Director, Office of Employee Benefits and Risk Management, ext. 616 Dr. Beth Thedy, Deputy Superintendent/Chief Human Resources Officer, ext. 200
2021 Board Agenda Item Stop Loss Insurance - 11.16.2021.pdf
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