Item Description:
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Agmt PR00005605 to purchase reinsurance protection from catastrophic medical claims as required by contracts between Hennepin Health and the Minnesota Department of Human Services, 01/01/24-12/31/24, NTE $4,000,000
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Resolution:
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BE IT RESOLVED, that Agreement PR00005605 for the provision of reinsurance services to Hennepin Health as required by contracts between Hennepin Health and the Minnesota Department of Human Services during the period January 1, 2024, through December 31, 2024, in an amount not to exceed $4,000,000, be approved; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the Agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
To mitigate financial risk for catastrophic losses, Hennepin Health contracts with reinsurance vendors annually to purchase reinsurance protection from catastrophic medical claims.
Because of the nature of service provided, reinsurance providers will not agree to terms for contracts longer than 12 months due to rapidly changing medical trends that can occur. Agreements are instead negotiated on an annual basis so the most recent medical claims experience/trends can be included into the following-year rate build up. To allow for enough medical experience to occur, these contracts are not typically negotiated until the beginning of October each year. The timing of this agreement, when ready to be executed, does not line up with the board schedule at the end of the year. This makes it difficult to obtain approvals and signatures prior to the beginning of the year, which would be the effective start date of the agreement.
For the above-stated reasons, board approval and delegation is now requested. After review and approval by the County Attorney's Office, the Chair and County Administrator are authorized to sign the agreement on behalf of the county and the Contr...
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