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Daviess County approves switch to Berkshire Hathaway for stop‑loss insurance amid rising claim costs
Summary
County commissioners voted to move stop‑loss reinsurance to Berkshire Hathaway after brokers reported higher claim trends and competing carrier quotes; county staff and brokers said the change aims to limit short‑term cost exposure.
Daviess County commissioners voted to move the county’s stop‑loss reinsurance to Berkshire Hathaway after hearing that the county’s claims are running above expectations and several carriers declined to quote.
Paul, a benefits broker for the county, and Amy, a broker working on the account, told the board the county’s stop‑loss insurer had proposed a large renewal and that shopping the market produced a more competitive quote from Berkshire Hathaway. Paul said the county’s “current deductible” is $85,000 and that the plan’s year‑to‑date claims through May were about $2.9 million, up roughly 25% from the same period last year.
Amy reviewed the plan’s claim drivers and said there are 14 claimants this year who have exceeded $42,500, compared with seven at the same point last year. Amy said those 14 claimants represented about $1.36 million, or about 52% of claims for the plan year so far, and that reimbursements already expected to the county for claimants exceeding the specific deductible are about $320,000.
Brokers showed competitive quotes, with Berkshire Hathaway offering the most favorable terms. Paul and Amy said the Berkshire option reduces the county’s additional laser liability compared with the incumbent, though the county’s fixed cost would still rise year over year. Paul told commissioners the worst‑case, fully annualized exposure could reach about $4.46 million but said that figure reflected a maximum aggregate scenario.
Commissioner Keith moved to accept the recommendation to lock in Berkshire Hathaway as the stop‑loss carrier; the motion passed on a recorded voice vote, “Aye,” with the board voting 2‑0.
During discussion Commissioners asked whether the payer can influence where high‑cost patients receive care. Paul and Amy said the county currently lacks a narrow network or financial steerage and that the county could explore options with UnitedHealthcare/UMR or direct contracting with local providers such as Davis Community Hospital, and that staff would return with options. Amy said the IRS minimum embedded deductible for HSA plans means some deductible changes must be made in plan documents for next year.
The board’s action authorizes county staff and brokers to finalize the Berkshire Hathaway stop‑loss renewal; staff will report back with any required plan‑document changes and options to steer high‑cost care.
