Montgomery County commissioners approve Gerber stop-loss renewal at 12/15 contract

Montgomery County commissioners voted unanimously Thursday to select Gerber as the county's stop-loss insurer under a 12/15 contract, choosing the option with the lowest projected maximum aggregate cost on staff's renewal worksheet.

The vote came after staff reviewed four carrier options and two contract-duration choices, and recommended the Gerber 12/15 option based on projected bottom-line costs. Commissioner Mary moved to adopt the recommendation; the motion received a second and passed with Commissioners Beaver, Cordray and Klubine voting yes.

Why it matters: the stop-loss policy limits the county's exposure to very large employee health claims. Staff said the recommendation balances near-term premium and the county's historical claims experience and that the county must finalize the provider before open enrollment later this week.

Staff presentation and recommendation: staff member Jonathan summarized the quotes and said the main differences among options were contract length (12/15 versus 12/18) and projected aggregate exposure. Jonathan told commissioners that, while the cheapest Gerber option showed a maximum aggregate around $3.76 million, actual costs would depend on claims activity and the county's other negotiated services that reduce downstream expenses. "I don't anticipate us hitting 3.5. We're gonna be lower and saving taxpayer dollars by going this route," Jonathan said.

Benefits staff member Katie reviewed the comparison matrix and the premium differences between carriers and contract lengths. Katie said the county historically chose 12/15 contracts to lower upfront rates and that pushing coverage further out (12/18) raises the premium. She noted staff preference to retain Aetna for network access and that both Access and Gerber were acceptable stop-loss carriers.

Vote and next steps: Commissioner Mary moved to approve Gerber under the 12/15 contract (motion), a second was recorded, and the commission approved the motion by roll call: Commissioner Beaver yes; Commissioner Cordray yes; Commissioner Klubine yes. Staff said open enrollment is scheduled this week and the decision was time-sensitive.

Budget context and risk: staff said the county budgets to the maximum aggregate as a worst-case scenario but expects the final result to fall between roughly $3.1 million and $3.7 million depending on final claims and other negotiated savings. Staff also said the stop-loss carrier chosen will replace the prior stop-loss provider while third-party administrator functions will continue with EBMS.

Commissioners did not request additional delay; staff will proceed to implement the selected stop-loss contract and finalize paperwork before open enrollment.