CHESHIRE – The Board of Education is considering proposals for a stop loss insurance carrier but expressed satisfaction with the member-owned group that Cheshire currently uses.
A request for proposals went out in November for a medical benefits carrier and stop loss insurance, which is coverage that caps the amount the town’s self-insurance fund would pay for health care claims.
Vincent Masciana, the school district’s chief operating officer, said stop loss insurance covers claim expenses in excess of $175,000 per person each year. The town is in its third year with CT Prime, a member-owned company that includes municipalities and the Capital Region Education Council.
The district pays lower premiums with CT Prime than with the companies it had used previously. Masciana said that high claims over the past two years have also resulted in Cheshire saving more through stop loss insurance than it paid in premiums to CT Prime.
November’s request for proposals include the administration of medical benefits and stop loss insurance. Masciana said the town could chose to accept a company’s proposal for one service and not the other, however.
CT Prime is a result of the state encouraging regionalization efforts and the pooling of municipal resources. CREC helped found the organization and provided an initial investment, Masciana said.
During Thursday’s Board of Education meeting, Masciana said an unusually high number of claims came in during CT Prime’s first two years.
Tony Perugini, a board member, said the company is required by state insurance laws to hold reserves.
“It’s still pretty solvent, for the most part?” Perugini asked.
Masciana said the company is, although premiums increased.
“We’ve received more in stop loss reimbursement than we’ve paid in,” he said. “We were part of the actuarial anomaly.”
While CT Prime has gotten off to a “rough start,” Masciana said similar organizations have thrived.
“We hold on to that and we continue to manage through that,” he said.
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