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Board declines purchase of external stop-loss reinsurance after Aon analysis
Summary
Acting on Aon’s recommendation, the Health Service Board voted unanimously to forgo buying external stop-loss (reinsurance) for SFHSS self-funded and flex-funded plans, citing contingency reserves, plan stabilization policy and Blue Shield pooling.
The San Francisco Health Service Board voted on March 8 to follow its actuary’s recommendation not to purchase external stop-loss reinsurance for the system’s self-funded and flex-funded health plans.
Mike Clark of Aon explained that SFHSS’s contingency reserve policy (maintained at a confidence interval and audited externally), the plan-stabilization policy that permits amortization of prior-year…
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