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Board approves renewal of stop‑loss insurance for district medical plan (RFP 250553)
Summary
After discussion of trade‑offs between premiums and deductibles, trustees approved renewal of the district's specific aggregate stop‑loss insurance (RFP 250553), accepting a higher deductible option that staff said would yield roughly $600,000 in premium savings unless a larger number of high claims occur.
Trustees debated item 8.15f, the district’s recommendation to renew specific aggregate stop‑loss insurance for the self‑funded medical/Rx employee benefit plan (RFP 250553). Benefits staff and consultants described options varying the attachment point (deductible) and summarized a market check of carriers and pricing.
A district staffer explained the trade‑off between paying higher annual premiums for a lower deductible and assuming more risk with a higher deductible. The presenter said moving the attachment point from $200,000 to $250,000 produced an estimated $600,000 premium savings based on current claims patterns, and that the savings would remain unless 13 or more members exceeded the $250,000 threshold in a year. "There's a $600,000 savings by moving," the benefits presenter said while reviewing the RFP options. Trustees asked for contract language ensuring carriers are accountable for claims paid in error and requested copies of the carrier contract; staff agreed to provide the documentation.
Consultants reported that the district solicited market responses and that several potential carriers quoted much higher pricing; the recommendation presented options at $200,000, $225,000 and $250,000 attachment points and noted an industry recommendation for a $300,000–$350,000 level for a district of Weslaco’s size. After questions and discussion, a motion to approve renewal with the recommended adjustment passed on a voice vote; the board recorded "motion carries."
