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CONSENT <br />INDIAN RIVER COUNTY <br />MEMORANDUM <br />TO: Jason Brown <br />County Administrator <br />FROM: Suzanne Boyll 4 �_ <br />Human Resources Director <br />DATE: August 29, 2018 <br />SUBJECT: Approval ofAgreementwith Florida Blue for the County's Excess Loss/Reinsurance <br />Policv <br />BACKGROUND: <br />The County is partially self-insured in its Group Medical Insurance Program and we carry a policy <br />that reimburses the.County for claims that exceed a specific limit. This type of policy is called a <br />stop loss policy, excess loss policy, or reinsurance policy. The County's current excess <br />loss/reinsurance policy is with Florida Blue and has a specific deductible of $300,000 for <br />individual claims and an aggregate stop loss deductible of $100,000. The current annual premium <br />for this policy is $635;146. This is based on a monthly composite & aggregate rate of $31.77 per <br />1,666 lives. <br />Lockton has provided information regarding the current stop loss market. The trend reflects that <br />high cost medical and Rx claims continue to be more frequent and severe with an increase of <br />87% from 2014 to 2017. Additionally, employers have a 63% likelihood of having a stop loss claim <br />that includes high cost specialty injectable prescription drugs. <br />Currently, the medical plan has five (5) ongoing high cost claims that are estimated to have an <br />impact on the plan of $350K - $975K for the remainder of the current stop loss policy. Lockton <br />Companies marketed the stop loss and received 2 firm quotes, with 10 carriers declining to quote <br />due to being uncompetitive and/or historical losses. The firm quotes are from Florida Blue <br />(Highmark) and Anthem. The various renewal options included maintaining the aggregate <br />deductible at $100,000 and retaining the individual deductible at $300,000 or increasing the <br />individual deductible to either $350,000, $400,000 or $425,000. <br />ANALYSIS: <br />Our broker/consultant Lockton Companies evaluated and reviewed the Florida Blue (Highmark) <br />and Anthem quotes. The most competitive quote was from our current stoploss carrier Florida <br />Blue. Florida Blue presented four coverage options. Three options included increasing the <br />specific deductible from $300,000 to either $350,000, $400,000 or $425,000. Lockton used a <br />Monte Carlo analysis to evaluate cost and risk. The results of the analysis indicate that although <br />an increase in deductible would result in a premium savings; however, the premium savings <br />190 <br />