Employers can secure a maximum cap on their specific stop loss rates for the next policy year and also eliminate any new individual underwriting (lasers) by paying a premium surcharge of 9.5%. This option confines the maximum specific excess rate increase for the next policy year to 39%. Note, this is a maximum rate increase and not a guaranteed rate action, since the group could still qualify for a significantly lower rate increase based on their actual experience and history.

• This option must be selected at the inception of a policy period (initial or subsequent years).

• The 39% Spec Rate Cap does not take into consideration any coverage changes (12/12 going to a paid contract) nor demographic changes (new locations or enrollment changes outside the policy norm).

• Higher specific excess deductibles can be applied to individuals in the first initial policy period, which can be carried over into future policy periods for these same individuals.

• Claim disclosure information is still required for each new policy period.

• The 9.5% premium surcharge is applicable for each year that this option is selected. The 39% rate cap does not include the cost of continuing the Spec Rate Cap Option. If the 39% increase is activated and the group wants to buy the Spec Rate Cap Option for the next policy period, then their effective rate increase is 52%.

• This option does not apply to aggregate coverage.
  
  
• May not be available in all states.