When normalized by contract type (e.g. 12/15, Paid), stop loss premiums are highly variable by size of deductible, yet remain predictable.

According to the Survey, average normalized (to a Paid contract) premium ranges from $51.08 per employee per month (PEPM) for a $100,000 Individual deductible to $7.51 PEPM for a $500,000 Individual deductible (see below table). 

The Survey provides additional insights on aggregate coverage and premiums, individual lifetime maximums, pharmacy coverage and projected 2009 premium levels.

The Survey allows users to fully compare their coverage and premium to the Survey responses. To receive a free copy of the 2008 Survey, submit data on your 2008 coverage or provide contact data for inclusion in next year's Survey at the link to the left. Plan sponsors, as well as brokers and consultants, can submit.

Summary Table: 2008 Aegis Risk Medical Stop Loss Premium Survey



Further Market Observations
Our ongoing observations on the continued high rate of increase include:

Underlying medical trend in large claimants, including transplants and the increased frequency of multiple births affected by fertility treatments

Leveraged effect of trend on specific deductibles. For instance, a $250,000 claimant at 10% underlying trend becomes $275,000, or a payment of $75,000 on a $200,000 deductible. An annualized increase of 50% from the prior year payment of $50,000

A market belief that traditional managed care approaches have run their course - when in fact, PPO network discounts have gotten larger.

Profit objectives restricting underwriter rate discounting in a 'soft' coverage market, further heightened by turmoil in the financial markets.

Unsophisticated purchasers and their advisors not fully aware of the unique dynamics in the stop loss market  - a continuing issue.

Aegis Risk helps its clients and partners gain competitive positioning against these dynamics through comprehensive, data-focused and knowledgeable approaches to the medical stop loss market.