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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.
- There are no group size or
premium restrictions in order to purchase this option.
- This option does not apply to aggregate
coverage.
- May not be available in all
states, contact our office for state availability.
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