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Stop-loss Report Shows Employer Deductible Preferences

04/30/14

  11:34:35 am, by MedBen5   , 228 words,  
Categories: News, Health Plan Management, Stop-loss

Stop-loss Report Shows Employer Deductible Preferences

The Self-Insurance Educational Foundation recently released a new report containing some interesting information about employer medical stop-loss (ESL) coverage in 2013.The report, prepared by actuarial and consulting firm Milliman, used data from eight of the country’s largest stop-loss carriers, representing approximately 50% of the market.

The report’s findings included the following:

  • Employers with 100 or fewer covered employees represent approximately one-quarter of the ESL market if the market is measured by count of employers. If measured by covered employees, however, that same segment represents only 2% of the ESL market.
  • A majority of ESL purchasers obtain both specific and aggregate stop-loss. However, most employers with over 1,000 employees purchase specific stop-loss without aggregate. The number of employers purchasing aggregate coverage without specific stop-loss is very small.
  • The data included employers that purchased specific deductibles ranging from $5,000 to $2,500,000. However, 80% of employers purchased deductibles of $50,000 or greater.
  • The median specific deductible found in the calendar year (CY) 2013 data across all plans was $85,000. For groups with 50 or fewer covered employees, the median deductible in CY 2013 was $30,000. For groups of 51-100 employees, the CY 2013 median was $45,000.
  • Approximately 0.3% of specific stop-loss policies with effective dates in CY 2013 had a specific deductible of less than $20,000.
  • The data included employers that purchased aggregate corridors ranging from 85% to 200% of expected claims. By far, the most common corridor (found on nearly 90% of policies with aggregate coverage) was 125% of expected claims.

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