To: Board of Supervisors
From: Executive Office
Meeting Date: December 14, 2021
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Department Contact: |
Cherie Johnson |
Phone: |
463-4441 |
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Department Contact: |
Emma Saucedo |
Phone: |
463-4441 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Agreement with Granular Insurance in the Estimated Amount of $1,582,000 to Provide a Stop-Loss Reinsurance Policy, Which Includes Specific Excess Loss and Aggregate Excess Loss Insurance Coverage for the County’s Self-Funded Health Plan for the Period of January 1, 2022 through December 31, 2022
End
Recommended Action/Motion:
recommendation
Approve Agreement with Granular Insurance in the estimated amount of $1,582,000 to provide a Stop-Loss Reinsurance Policy, which includes Specific Excess Loss and Aggregate Excess Loss Insurance Coverage for the County’s Self-Funded Health Plan for the period of January 1, 2022 through December 31, 2022; and authorize Chair to sign same.
End
Previous Board/Board Committee Actions:
On February 23, 2021 the Board approved Agreement No. 21-032 with Coefficient Insurance Company.
Summary of Request:
Each year, Keenan & Associates (Keenan), the County’s consultant to the self-funded health plan, markets the stop-loss reinsurance coverage on behalf of the County. Reinsurance protects the County on any claim over the attachment point. Specific stop-loss provides protection against catastrophic or unpredictable losses above the $250,000 individual deductible. For any individual claim exceeding the $250,000 deductible, the reinsurance company pays 100% of the remaining claim.
Only two proposals for reinsurance were received. Four other carriers declined to quote due to uncompetitive rates. The incumbent, Granular Insurance, formerly Coefficient Insurance Company, submitted the most cost effective proposal of the two.
Granular Insurance (Granular) is the new name for the carrier formerly known as Coefficient Insurance Company (Coefficient). Coefficient had previously purchased General Fidelity Life Insurance Company and the policy documents reflect the General Fidelity name due to the time it takes for the State to approve the name change to the documents but the reinsurance policy is in actuality being provided by Granular.
The Granular excess loss insurance policy includes both specific and aggregate reinsurance coverage. Aggregate reinsurance provides a maximum on the dollar amount of eligible expenses that an employer would pay, in total, during a contract period. The Granular aggregate reinsurance policy will pay up to $1,000,000 over the aggregate attachment point of $18,537,896.00.
The monthly premium is calculated on a per-employee per month (PEPM) basis and according to the type of health plan coverage the employee is enrolled in. The Specific Stop-Loss premium is $84.62 PEPM for single coverage and $183.07 PEPM for family coverage. The Aggregate Loss premium is $$1.45 PEPM. A definitive amount for the contract cannot be accurately determined as the monthly premium amount is based on the number of employees enrolled in the health plan and the type of plan the employee is enrolled in. The premium amount will vary from month to month.
Alternative Action/Motion:
Return to staff with further direction.
How Does This Item Support the General Plan? N/A
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: 0715 |
budgeted in current f/y: Yes |
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current f/y cost: $1,539,278 (est.) |
if no, please describe: |
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annual recurring cost: $1,626,000 (est.) |
revenue agreement: No |
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budget clarification: Calendar year contract budgeted over two fiscal years. |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Darcie Antle, Assistant CEO |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Deputy Clerk II |
Final Status:Approved |
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Date: December 14, 2021 |
Executed Item Type: Agreement Number: 21-226 |
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Note to Department Number of Original Agreements Returned to Dept: 0 Original Agreement Delivered to Auditor? No |
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