Renewal of Third Party Administrator for Medical Claims and Reinsurance/Stop
Loss Carrier (SOUND BORING? READ ON, WE ARE SAVING MONEY!)
The School District of Janesville (SDJ) received the administrative services renewal for our health insurance program from our Third Party Administrator, UMR, and our reinsurance carrier for Stop Loss Coverage, Sun Life. The estimated increase was a whopping 21% of their total cost.
Our new Insurance Consultants, the Boyds, came to the rescue. After an extensive review of the proposals received, Boyd consultants recommended that the District move these services to Professional Benefit Administrators (PBA) for Third Party Administration services and Zurich Life Insurance for reinsurance (Stop Loss) coverage. They also recommended that the School District of Janesville increase our “Stop Loss” deductable to $375,000. The Superintendent approved this recommendation and as a result, the District will realize an annual savings of $438,193 when compared to the renewal quotes from UMR/Sun Life. This is an estimated 41% savings.
This change will go into effect on September 1, 2012.