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CONSENT <br />INDIAN RIVER COUNTY <br />MEMORANDUM <br />TO: Jason Brown <br />County Administrator <br />FROM: Suzanne BoyII I/1 <br />Human Resources Director <br />DATE: September 6, 2017 <br />SUBJECT: Approval of Agreement with Florida Blue for the County's Excess Loss/Reinsurance <br />Policy <br />BACKGROUND: <br />The County is self-insured in its Group Medical Insurance Program and we carry a policy that <br />reimburses the County for claims that exceed a specific limit. This type of policy is called a stop <br />Toss policy, excess loss policy, or reinsurance policy. The County's current excess Toss/reinsurance <br />policy is with Florida Blue and has a specific deductible of $300,000 for individual claims and an <br />aggregate stop loss deductible of $148,750. The current annual premium for this policy is <br />$497,193. <br />ANALYSIS: <br />Florida Blue provided renewal options on August 2, 2017. Each of the renewal options included <br />a 10% broker commission. <br />Option <br />Specific <br />Deductible <br />Aggregate <br />Specific <br />Deductible <br />Annual Fixed <br />Premium <br />Increase/ <br />(Decrease) <br />from Current <br />% Increase / <br />Decrease <br />Current <br />$300,000 <br />$148,750 <br />$497,193 <br />N/A <br />N/A <br />Renewal <br />$300,000 <br />$148,750 <br />$553,509 <br />$56,316 <br />11.3% <br />Option 1 <br />$350,000 <br />$148,750 <br />$468,015 <br />($29,178) <br />-5.9% <br />Option 2 <br />$400,000 <br />$148,750 <br />$405,574 <br />($91,619) <br />-18.4% <br />The renewal options were reviewed by our new broker/consultant Lockton Companies. Based <br />on Lockton's analysis of projected claims experience, they are recommending we renew with the <br />current specific deductible of $300,000. The premium savings of increasing our specific <br />deductible would not outweigh the increase in the deductible based on projected claims <br />experience. <br />Lockton also solicited proposals for reinsurance from other carriers and no other proposers were <br />able to match Florida Blue's renewal proposal. The Florida Blue proposal is very competitive. <br />P256 <br />