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District staff says consortium stop‑loss will likely cost Palisades about $250,000 this year
Summary
District finance staff reported the consortium stop‑loss exposure will likely result in about a $250,000 charge to the district this fiscal year but said rebates and stop‑loss reimbursements should limit the net impact on the $1.4 million fund balance.
Dennis, the district’s health‑benefits presenter, told the fiscal committee the consortium’s stop‑loss situation will affect the district but not as severely as headline numbers suggest. "Our portion is going to be about $250,000," he said, adding that the district’s current fund balance is roughly $1.4 million and that prescription rebates and stop‑loss recoveries should help absorb the cost.
Dennis explained the mechanics: at the consortium level the program covers claims up to a shared attachment; amounts above the consortium cap are reinsured by Aetna. He told trustees the consortium covers up to about $600,000 and the district’s chosen attachment point of $75,000 helped secure $1.6 million in stop‑loss reimbursements this year. He also noted that Rx rebates from the plan’s pharmacy vendor typically offset part of monthly claim costs and that a June rebate is expected to improve the picture further.
Trustees asked for clarifications about whether the $250,000 represents a formal deficit for Palisades; Dennis reiterated it is an allocated portion of a larger consortium shortage and that timing (May/June settlements and rebates) could change the net exposure. A board member requested that staff present an updated proforma after fiscal‑year close so the committee can see year‑end impacts and the anticipated fund‑balance level.
The committee took no formal action during the update; staff said they will bring revised proforma figures when available.
