Lafayette Parish committee reviews proposed rise in stop-loss deductible, notes budgeted impact and open-enrollment shifts to Humana

At a meeting of the Lafayette Parish School System Insurance and Finance Committee, committee members reviewed Gallagher's stop-loss (specific reinsurance) renewal proposal, discussed its impact on the district's Fund 85 budget and received an update on open-enrollment transitions to the Humana Medicare Advantage plan.

Melanie, a Gallagher presenter, told the committee that specific reinsurance (often called stop loss) is purchased to protect a self-funded plan from catastrophic individual claims and to stabilize premiums. "The reinsurance, the stop loss, we we use those terms interchangeably, is to cover anything over a certain amount. Currently, as of yesterday, it was a half a million dollars," she said.

Melanie described a proposed renewal design that would raise the individual specific deductible to $600,000 and add a separate $325,000 layer that must be satisfied before reinsurer reimbursement. She said the change is intended to reduce the district's premium and limit the compounding effect of premium increases year to…