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County broker moves to flat fee as stop-loss renewal cuts premiums, Horton Group says
Summary
The county approved an amended stop-loss renewal under a broker engagement that moves compensation to a $15 per-employee monthly fee; staff and broker said the renewal lowers stop-loss premium exposure from $2.4 million to $2.1 million.
Saint Joseph County commissioners approved an amended renewal for the county’s stop-loss reinsurance under the employee health plan and heard the county’s broker describe a transparency-focused change to broker compensation.
Ryan Carlson of the Horton Group told the board the Horton Group became the county’s benefits broker June 1 and proposed replacing the previous commission arrangement with a $15 per-employee-per-month flat fee. Carlson said that under the amended stop-loss arrangement the county’s aggregate exposure reflected in the presentation decreased from $2,400,000 to $2,100,000 and that premiums would drop about 19.5 percent compared with the prior commission structure.
Carlson described the broker fee change as intended to provide transparency. He said previous compensation had been paid as a percentage commission (previously about 15 percent and variable by enrollment and premiums) and that the new compensation will be the $15 per-employee monthly fee, with the county’s invoice reflecting that amount.
Commissioners had no questions and voted to approve the Berkeley stop-loss insurance renewal proposal as amended.
