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Blue CroSS ~,. ~. ' <br />' Blue'Shield <br /> <br /> December 9, 1980 <br /> <br /> Page 2 <br /> <br /> (1) Quoted rates are calculated to pay estimated claims and carrier <br /> administration only. Any funding of reserves would be at the <br /> discretion of the County but we will provide actuarial advise in <br /> this report. <br /> <br /> (2) The County would be refunded all unused funds on a quarterly basis. <br /> <br /> (3) In moving to a NRA effective 02-01-81, we are prepared to "forgive" <br /> any deficit charged to the County as of 01-31-81. As of August l, <br /> 1980, this deficit amounted to $29,048.25. <br /> <br /> (4) The obvious disadvantage of self-funding is that the County is at <br /> risk for all claims and administrative expense. This disadvantage <br /> is minimized through the purchase of "stop loss" insurance which <br /> places a limit on the County's l~ability at a pre-determined. <br /> point. We normally provide this insurance with claims expense <br /> limited to either 115% or 125% of expected claims. Exhibit l, <br /> enclosed, reflects the financial liability of the County under MRA <br /> contract and with both 115% and 125% stop loss insurance. <br /> <br /> Again, we would be happy to discuss this matter at length and answer any <br /> guestions you may have. <br /> <br /> Your attention is invited to the Life, AD&D and Dependent Life rates quoted <br /> by American Bankers Life. Even at present participation levels, a substantial <br /> reduction Ps offered. Reductions are increased as participation percentage <br /> increases making it highly desirable to move toward a 100% enrollment. <br /> <br />To reinforce the participation requirements contained in the enclosed Dental <br />Proposal, a minimum of 75% of employees and 75% of dependents must enroll in <br />order to install the program. <br /> <br />Thank you for giving us the opportunity to bid on your program. It has been <br />our pleasure to serve the employees of Cabarrus County for many years and we <br />are most anxious to continue this relationship. <br /> <br />I will call you early next week to arrange an appointment to discuss our <br />proposals further. <br /> <br />Very~/uly yours, <br />Ke~o~l e~/~-~ <br />Group Sales Representative <br /> <br />Enclosures <br /> <br /> <br />