Mitigating risk for unanticipated claims is a common objective for most employers, with stop loss protection serving as the primary solution. But how does an employer know if they are purchasing the right amount of coverage to protect them? The stop loss market has become increasingly complex and costly due to the:
- Frequency and severity of $1M+ claims
- Impact of specialty drugs on high-cost claims
- Rapid emergence of gene and cell therapy treatments
We recommend employers follow these steps when managing health plan budgets and determining how to accept, transfer or reduce risk.