By now, it’s no secret that self-funded health insurance in the workplace is gaining popularity due to the need for increased healthcare options and savings for companies. Of course, along with self-funded healthcare come added risks. Each employer is different, and whether an individual employer needs stop-loss insurance depends on a number of different factors.
Is Stop-Loss Right for My Business?
In order to determine if stop-loss insurance is right for your business, a number of different questions need to be asked. First, how large is your workforce? If there are fewer than 50 employees, there is a good chance that stop-loss insurance will be beneficial for your business in the long term. Whether stop-loss insurance is advantageous to an employer or will bring with it unnecessary costs depend on each employer. If you are on the board of a large corporation, it could mean that the risk assessments and plan management for your self-insured medical coverage might be better of being handled internally. Other factors to consider include the age and overall health of your employees. Older workers tend to require more healthcare, such as prescription drugs, surgeries, and so on.
Stop-Loss Insurance Continues to Gain Popularity
Did you know? More than 60 percent of employers who use self-funded insurance now have some form of stop-loss programs. The reason why stop-loss insurance continues to gain popularity is because self-funded healthcare plans are also on the rise. This is due to the fact that employers have been searching for options after the implementation of the Affordable Care Act.
Self-Funding Minimizes Risks While Increasing Plan Options
Self-funding can save a significant amount of money while opening up many different options that don’t come with traditional health care plans. Adding a stop-loss policy to a self-funded healthcare plan is the best way to minimize risk and ensure that all of the benefits of self-funding come to the employer. Traditional insurers can legally conduct a practice called lasering, which means that higher deductibles are put on specific employees – or individual employees might be excluded from coverage altogether. Self-funded plans can help employers avoid lasering and also provide their valued employees with the healthcare that they deserve.
Stop-loss insurance comes in two main forms – aggregate and specific. Aggregate takes into account the total amount of claims of an organization, while an individual focuses on one specific employee. Most self-funded employers tend to use a combination of both aggregate and specific stop-loss.
Trust the Stop-Loss Professionals
There are many different factors that play into whether adding a stop-loss insurance policy to your self-funded healthcare plan is right for your organization. At Prodigy, we have many years of experience with minimizing risks for self-funded employers and we aim to continue to do that while saving our clients money and helping to expand options. If you have any questions as to whether stop-loss is right for your business, don’t hesitate to contact our experts anytime!