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Results: 2011 Aegis Risk Medical Stop Loss Premium Survey
Our Partner
The annual Medical Stop Loss Premium Survey is done in conjunction with The International Society of Certified Employee Benefits Specialists.
The annual Medical Stop Loss Premium Survey is done in conjunction with The International Society of Certified Employee Benefits Specialists.
About the Survey
The 2011 Aegis Risk Medical Stop Loss Premium Survey, in its fifth year, measured over 100 employers covering approximately 310,000 employees with over $77 million in annual stop loss premium. It is the only employer-based survey focused exclusively on medical stop loss coverage.
Key Survey Findings
Stop loss premiums vary widely due to deductible size. However, when normalized by contract (e.g. Paid, 12/12), an average cost is determined across the range of deductibles.
According to the Survey, average premium (normalized to a Paid contract) ranges from $79.32 per employee per month (PEPM) for a $100,000 Individual deductible to $9.41 PEPM for a $500,000 Individual deductible (see below table).
The Survey includes a worksheet to compare your exact coverage and premium costs against Survey results. It also provides insight on aggregate coverage, individual lifetime and annual maximums, pharmacy coverage and projected 2012 premium levels.
To receive a FREE copy of the 2011 Survey results, provide name, email and organization at this link. We will also notify when the 2012 Survey opens in the Spring. Plan sponsors, as well as brokers and consultants, can submit.
Summary Table: 2011 Aegis Risk Medical Stop Loss Premium Survey
Our ongoing observations on the stop loss market include:
The 2011 Aegis Risk Medical Stop Loss Premium Survey, in its fifth year, measured over 100 employers covering approximately 310,000 employees with over $77 million in annual stop loss premium. It is the only employer-based survey focused exclusively on medical stop loss coverage.
Key Survey Findings
Stop loss premiums vary widely due to deductible size. However, when normalized by contract (e.g. Paid, 12/12), an average cost is determined across the range of deductibles.
According to the Survey, average premium (normalized to a Paid contract) ranges from $79.32 per employee per month (PEPM) for a $100,000 Individual deductible to $9.41 PEPM for a $500,000 Individual deductible (see below table).
The Survey includes a worksheet to compare your exact coverage and premium costs against Survey results. It also provides insight on aggregate coverage, individual lifetime and annual maximums, pharmacy coverage and projected 2012 premium levels.
To receive a FREE copy of the 2011 Survey results, provide name, email and organization at this link. We will also notify when the 2012 Survey opens in the Spring. Plan sponsors, as well as brokers and consultants, can submit.
Summary Table: 2011 Aegis Risk Medical Stop Loss Premium Survey
Our ongoing observations on the stop loss market include:
- Amplified medical trend in large claimants. Includes organ transplant expense and the increased frequency of multiple births due to fertility treatments.
- Leveraged effect of trend on specific deductibles. In example, a $250,000 claimant at 10% trend becomes $275,000 the next year. On a $200,000 deductible, this produces a payment of $75,000, an increase of 50% from the prior year payment of $50,000.
- Continued softness in the reinsurance markets. 2011 premiums, as measured by the Survey, remained consistent to 2010 levels, perhaps reflecting continued 'soft' reinsurance market pricing.
- Impact of Unlimited Maximums. Health care reform required the removal of any individual lifetime maximums on the underlying health plan - further increasing the liability covered by medical stop loss. In response, fully 82% of Survey respondents report an unlimited lifetime maximum, and increase from just 13% in 2010 (before health care reform requirements).
- Unsophisticated purchasers and their advisors. A continuing issue, many employers and advisors are not aware of the data points to leverage with underwriters, nor fully understand the impacts of health care reform on stop loss coverage.