Issue
This school district left a fully insured health insurance arrangement in favor of a self-funded plan and administrative services only (ASO) agreement. Following the district’s shift to a self-funded plan, Stealth Partners Group, an Amwins company and CBIZ partner, was engaged to review alternative options to the client’s carved-in stop-loss approach with their current carrier.
Solution
- In partnership with Stealth Partners Group and Amwins, our team transitioned the school district from their carved-in stop-loss strategy to a carved-out stop-loss arrangement.
- Our actuarial specialists conducted a Monte Carlo analysis to evaluate the most cost-effective risk transfer for the district’s stop-loss deductible.
- Stealth Partners Group and Amwins continue to provide the district with audit services for every large claimant that has hit the specified deductible limit.
Outcome
- Since moving to a carved-out stop-loss arrangement, the district has averaged a 2% decrease per year in their stop-loss insurance fixed costs.
- The district’s stop-loss insurance now represents only 8.3% of their total spend.
- The district’s annual stop-loss premium now amounts to approximately $3M annually.
| Company Information | |
|---|---|
| Industry | Education |
| Geographic Footprint | Wyandotte County, Kansas |
| Number of Employees | 4,000 |
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