For many plan sponsors, their annual medical stop loss renewal rate increase is one of their benefit plan's most costly requests. Unfamiliarity with the coverage, whether by themselves, their advisor, or both, often leads to greater frustration.

With a more rigorous renewal approach, many plan sponsors can realize greater premium savings. Furthermore, stop loss is largely invisible to employees and plan participants - it has little, if any, impact to annual enrollment and employee coverage decisions. As a result, it is an attractive, low-impact source of further benefit plan savings.

With its dedicated focus on medical stop loss, Aegis Risk helps its clients and partners avoid frustrating outcomes and excessive premium increases. Below are some of our recommendations to obtain a cost-efficient renewal:
 

• Leverage data. Stop loss underwriters fear uncertainty. Provide updated claims data. Confirm their PPO discount assumptions. Refer to competitive premium data like the Aegis Risk Medical Stop Loss Premium Survey.

 

• Time it well. A renewal completed too early will likely be loaded with additional premium margin (due to the increased uncertainty). Finalization around 60 days prior to renewal is optimal.

 

• Find the right underwriter. Certain carriers favor certain populations. Learn who's favorable to your ASO/TPA and network. Consider the pros/cons of an MGU vs. a direct writer.

 

• Index your deductible. The size of your stop loss deductible should increase with underlying medical trend. Otherwise you over-insure and overpay.

 

• Be aggressive. You don't get what you don't ask for.

 

• Use a strong advisor. Knowledge and relationships help. Candidly, we think we add strong value - just ask our clients!

 

Contact us today to discuss our approach, market observations, and to obtain a complimentary review of your coverage. We'd be excited to assist on your upcoming renewal.

 

We partner with employers as well as other brokers and consultants.