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DeKalb County approves new benefits contracts to rein in a projected 28% health renewal; selects PHP/Companion Life and Lincoln
Summary
After hearing that the incumbent stop-loss renewal would raise the county's liabilities by roughly 28%, commissioners approved moving medical administration to PHP with Companion Life (150k specific deductible) and shifting ancillary lines to Lincoln, directing implementation work to begin immediately.
DeKalb County commissioners voted on May 25 to change vendors for major pieces of the county's employee benefits program after consultants presented competitive market quotes that substantially undercut the incumbent renewal.
Benefits consultants told the board the incumbent renewal (Surest/UnitedHealthcare stop-loss) came back with a projected overall increase of roughly 28% on fixed and maximum liabilities; consultants said that renewal would have increased the county's all-in worst-case exposure by more than $1.1 million. The consultant presentation pointed to large increases on both the specific and aggregate stop‑loss lines and said that change drove the need to test the market.
Consultants identified an alternate combination — Physicians Health Plan (PHP) administration with Companion Life stop-loss — that produced a noticeably lower all‑in cost in their modeling, particularly when paired with a $150,000 specific deductible rather than the county's current $125,000. The consultant summarized tradeoffs: higher per‑person deductible reduces fixed premium but increases per‑claim exposure; the broker noted three members currently exceed $125,000 in claims and recommended the $150,000 specific as a reasonable risk/reward decision.
The board also considered ancillary and voluntary coverages (dental, vision, life and disability), and consultants recommended moving those lines to Lincoln, citing multi‑year guarantees and tech credits that would offset an implementation of a new benefits‑administration platform.
Commissioner (speaker 2) moved to accept the PHP/Companion Life proposal with the $150,000 specific deductible; the motion was seconded and carried by voice vote. The board also approved moving ancillary lines to Lincoln and asked staff and consultants to begin implementation and premium-equivalent modeling immediately. Consultants said they would deliver premium-equivalent tables, contribution scenarios and implementation timelines at the next meeting to meet June open‑enrollment scheduling.
What the board approved: - Move medical administration to PHP with Companion Life stop‑loss and a $150,000 specific deductible; begin implementation work and data transfers. - Move ancillary (dental, vision, voluntary life, LTD, short‑term disability) to Lincoln with negotiation on rate guarantees and a planned second open‑enrollment window for guaranteed-issue periods.
Quotes from the meeting included the consultant's summary of the renewal: "The renewal was at 28.3% increase," and a staff recommendation that "taking the fixed cost savings" by raising the specific deductible to $150,000 could be the safer financial bet for the county.
Next steps: Consultants will deliver detailed premium-equivalent modeling, employee contribution scenarios and implementation timelines for the board and for employee education sessions ahead of open enrollment.
