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Meeting Date:
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5/24/2022 - 5:00 PM
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Category:
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Adoption of Consent Agenda
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Type:
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Action
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Subject:
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Approval of Supplier Spend Estimated to Surpass Board of Education Threshold Specified in Policy DJ - Sun Life Stop Loss Coverage
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End Statements:
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End Statement V Financial Well-Being Financial Well-Being
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Enclosure
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File Attachment:
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Summary :
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On behalf of the District, Lockton Companies, LLC solicited bid responses for Stop Loss coverage for the self-funded medical plan’s large claims. Request for proposals were sent to twelve (12) carriers, seven (7) vendors declined to quote. Of the Five (5) vendors who provided a bid, the three (3) most competitive carriers were: Sun Life (incumbent), TM HCC, Swiss Re as follows -- Sun Life: $913,965 (23% increase from current); TM HCC: $986,121 (33% increase from current); and, Swiss Re: $996,116 (34% increase from current). The medical underwriting used to budget for the July 1, 2022 plan year factored in a 20% increase. After final negotiations and comparisons, awarding to Sun Life at the current stop loss deductible level of $550,000 would result in a savings of $72,000 over moving to TM HCC and $82,000 over moving Swiss Re. Increasing the deductible to $650,000 would yield $139,625 of fixed cost savings from the Sun Life renewal (4% increase from current). However, we predict the plan would be subject to an average additional claims liability of ~$130,000, bringing the net value change deductible to $10,000 of potential savings. Please note, high cost claims could increase higher than $130,000, resulting in increased costs over current.
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Funding:
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Recommendation:
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That the Board of Education approve the supplier spend whose spend is expected to surpass the purchasing threshold specified in Policy DJ under adoption of Consent Agenda.
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Approvals:
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Recommended By:
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Signed By:
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Kate Kotaska - Chief Financial Officer
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Signed By:
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Amanda Thompson - Chief Human Resources Officer
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Signed By:
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Mary Kay Klimesh - General Counsel
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Signed By:
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Erin Kane - Superintendent
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