Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Stop Loss topic
No spam. Unsubscribe anytime.
District reports higher stop-loss pricing after multi-year claims; staff says coverage is required by state law
Summary
Staff told trustees two stop-loss carriers responded to the RFP and that recent high reimbursements have pushed market pricing up; staff described stop-loss as a required element of self-insured plans under state law and said pricing was not as bad as anticipated.
Dustin Garz told trustees the district received two stop-loss carrier proposals and that offers showed a sizable price gap between vendors.
Garz said the district's stop-loss reimbursements in recent years have exceeded premiums, which has pushed pricing higher in the market. "We've actually the reimbursements that had the last 3 years have exceeded by a long shot the premium we've paid them," Garz said, describing the strain on stop-loss underwriting.
Garz also noted that stop-loss insurance is required for self-insured school plans under the Texas Education Code; staff described the market as improving somewhat from what was feared earlier in the renewal cycle. He told the board the price increases were "not as bad as I thought we were gonna see" and that staff will continue to evaluate carriers and negotiate terms.
The board asked questions about frequency of plan changes and monitoring; Garz said the district treats major insurance items as annual renewals and will return with negotiated contract details before the Aug. 11 meeting.
