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Board of Education Meeting Date: 6/11/2020
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| | | | | | | | Action under consideration
| | The Administration recommends that the Board of Education authorize The School District of Philadelphia, through the Superintendent or his designee, to execute and perform a contract, subject to funding, as follows:
| | | With:
Tokio Marine HCC
| | | Purpose:
Stop loss insurance
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| | | | | | | | | | Start date: 7/1/2020
| | | End date: 6/30/2021
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| | | | | | | | | | Compensation not to exceed: $996,162
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| | | | | | | | | | Location:
All Schools; Administrative Office(s)
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| | | | | | | | | | Description:
Under its self-funded arrangement with Independence Blue Cross, the School District of Philadelphia (SDP) is responsible for claims it incurs and pays. Stop loss insurance is purchased to protect against catastrophic claims, limiting SDP's exposure. The specific stop loss level for the District is $1 million per individual. SDP, with analysis support from its Benefits Consultants Connor, Strong and Buckelew, will continue to purchase a $1 million deductible stop loss insurance policy to manage and avoid the potential for large liabilities related to medical and pharmaceutical claims. This includes costs associated with catastrophic illnesses, premature births and associated complications, along with high cost specialty drugs. The Tokio Marine policy allows for unlimited annual and lifetime maximums. Additionally, in compliance with Health Care Reform, SDP's policy does not restrict dependent eligibility or include a pre-existing conditions clause. Continuing chronic conditions and pharmacy costs for specialty medications can all impact SDP's experience and claims.
| | | Anchor Goal(s) Supported:
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| | | | | | | | | | Related resolution(s)/approval(s):
September 9, 2019; No. 47
June 27, 2019; No. 20
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| | | | | | | | | | Funding Source(s):
FY 20/21 Health Fund |
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| | | | | | | | | | Office Originating Request: Board of Education
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