Every broker I talk to has a version of the same story. A client group renews its stop-loss coverage, the carrier prices it based on last year’s claims and then somewhere around month eight or nine, a handful of catastrophic cases blow up the numbers. The carrier raises rates at renewal, sometimes dramatically. The broker is left explaining why the plan that looked stable 12 months ago is suddenly unaffordable. And the employer is left wondering if self-funding was the right decision at all.
This story plays out thousands of times a year across the country. And the frustrating part is that in many cases, the warning signs were there. We just didn’t have the right tools to see them.
