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I <br /> Board of County Commissioners <br /> Page 2 of 2 <br /> September 15, 2015 <br /> Analysis: <br /> The Gehring Group obtained proposals from the existing carrier (Sun Life), as well as Florida Blue and <br /> Symetra for the renewal. Pricing was provided by each carrier for two options. First is a renewal with <br /> no change in the Specific Stop Loss deductible ($275,000) or the Aggregate Specific deductible <br /> ($148,750). It should be noted that the Specific Stop Loss deductible ($275,000) per covered individual i <br /> and the Aggregate Specific deductible ($148,750) must be met before the County is eligible for <br /> reimbursement. All claims paid in excess of $275,000 are counted towards the Aggregate Specific <br /> deductible whether it is one claim or several claims. Additionally, each carrier provided pricing for <br /> coverage with an increase in the Specific Stop Loss deductible by $25,000 to $300,000 while <br /> maintaining the Aggregate Specific deductible of$148,750. <br /> Option 3, from Florida Blue provides the lowest fixed premium for the plan year. The proposed <br /> premium of$451,008 is a decrease of$15,936, or 3.4% from the current year. This option comes with <br /> an increase in the Specific Stop Loss deductible from $275,000 to $300,000. In the event that the <br /> County has two (2) or fewer large claims, this option provides a savings over Option 2 (the second <br /> lowest premium). In the event that the County has three (3) or more claims, this option results in a <br /> higher potential exposure to the County. However, this additional exposure can be absorbed by the <br /> Health Insurance Trust Fund in the event of several large claims. Also, the County typically has fewer <br /> than three (3) large claims in a year, meaning that in most years, this choice would result in the lowest <br /> total cost. For these reasons, staff recommends approval of Option 3. <br /> Recommendation <br /> Staff recommends the Board authorize the County Administrator to execute the agreement for Option 3 <br /> with Florida Blue for the County's Excess Loss/Reinsurance Policy for plan year 2015/16. <br /> Attachments <br /> Agreement with Florida Blue Approval Date <br /> Indian River County Reinsurance Analysis — Administration 9A 7 5 <br /> 2015/16 <br /> Legal <br /> APPROVED FOR AGENDA: Budget 6 <br /> Human Resources <br /> By: <br /> Joseph A. Baird, County Administrator <br /> .I <br /> For: September 22 2015 <br /> Date <br /> 53 <br />