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AGENDA ITEM REVIEW FORM
3.B.
Special Employee Benefit Trust Board Meeting
Meeting Date:
05/04/2023
Department Head:
Adela Cortez
Submitted By:
Maria Barajas Gutierrez, Human Resources Coordinator, Human Resources Department

ITEM:

Discussion and possible action on any and all matters regarding the final Stop Loss Insurance carriers' quotes. (Susan Posada, Broker, and Consultant)
 

SUMMARY:

During this last fiscal year, there have been several large claims that have impacted the renewal cost of Stop Loss Insurance.  Our current Stop Loss Insurance carrier, Symetra Financial, provided the following proposed quotes:
  1. Policy with Laser of $605,000 – Specific deductible of $50,000 with an annual premium of $898,002.72.  Percentage of increase over current 19.76%.
  2. Policy without Laser – Specific deductible of $50,000 with an annual premium of $1,163,065.56.  Percentage of increase over current 55.11%.
  3. Policy with Laser of $605,000 – Specific deductible of $75,000.  Total annual premium of $697,116.36.  Percentage of increase over current 15.86%.
  4. Policy with Laser of $605,000 – Specific deductible of $100,000.  Total annual premium of $590,364. Percentage of increase over current -1.88%.
Research was conducted to see if we could find a more cost-efficient policy.  Matrix Group Benefits, LLC presented the following options:           
  1.  Policy with a Laser of $185,000.  Specific deductible of $50,000.  Total annual premium of $703,480.68.  Percentage of increase over current -6.18%.
  2.  Policy with a Laser of $185,000.  Specific deductible of $75,000.  Total annual premium of $669,575.16.  Percentage of increase over current -10.71%.
  3.  Policy with a Laser of $185,000.  Specific deductible of $100,000.  Total annual premium of $590,450.76.  Percentage of increase over current -34.25%.
Due to the increased rates of our current Stop Loss Insurance carrier, it is our recommendation to switch our Stop Loss Insurance to Matrix Group Benefits, LLC.  We are specifically recommending Option 5 as that provides the lower Specific Deductible. (Note: On the attached proposal says option 1, but it has the terms of option 5).
 

RECOMMENDATION / SUGGESTED MOTION:

I MOVE TO APPROVE THE STOP-LOSS INSURANCE CARRIER TO MATRIX GROUP BENEFITS, LLC AND START NEW POLICY -WITH OPTION #5- AS PRESENTED, AND DIRECT THE EXECUTIVE ADVISERS TO TAKE ALL FURTHER ACTION NECESSARY TO OBTAIN THE POLICY.
 

Fiscal Impact

Fiscal Impact:

Fiscal impact as shown in the summary and attached proposal.

Attachments