Strengthening Your Stop-Loss Strategy
With stop-loss premiums surging in 2025, strategic purchasing is essential to protect the integrity of self-funded plans. Brokers play a pivotal role in guiding employers toward smarter decisions in three key areas:
Choosing Optimal Attachment Points
Setting the right specific deductible—the amount the employer pays before stop-loss kicks in—is a balancing act. Too low, and premiums skyrocket. Too high, and risk exposure grows. Employers should assess historical claims data, projected utilization, and employee demographics to find their “Goldilocks zone.” Many are now adjusting attachment points annually to stay aligned with shifting claims volatility.
Exploring Layered or Captive Models
To offset rising costs, mid-sized employers are joining group captive arrangements, pooling resources to gain purchasing power and spread risk. Others are implementing layered coverage, purchasing multiple levels of protection (e.g., $250K, $500K, $1M) with different carriers. These alternative funding models offer tailored solutions while improving overall stop-loss efficiency.
Monitoring Claims Volatility
Tracking high-cost claims—especially outliers like cancer treatments or complex surgeries—has become mission-critical. Brokers are helping employers build real-time dashboards, run predictive analytics, and implement early intervention programs. These tools help employers detect potential spikes early and adjust coverage or wellness offerings accordingly.
Stop-loss isn’t just an expense—it’s an opportunity to engineer resilience. With the right strategy, employers can protect their plan, their people, and their bottom line.
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Strengthening Your Stop-Loss Strategy
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