Consider the following questions:
Do you have an employee benefit plan that you self-fund?
Are you responsible for purchasing stop-loss coverage to protect your employer interests?
Is your broker experienced with hundreds of cases that provide you comfort they know what they’re doing?
Are you a broker who is trusted by a client but need an expert to help you keep that trust?
Is the person purchasing stop-loss for your business relying upon an inexperienced agent, broker, or consultant to make the right recommendation?
Are you assuming how you bought stop-loss last year will protect your interests next year?
Stop-loss Purchasing is Still a Mind-field
Stoploss purchasing continues to be a mind-field of pitfalls for brokers and buyers of coverage. In a recent survey, the authors make this statement after examining successes and failures of plan sponsors who purchase employer protection.
A less experienced advisor can cost your plan hundreds of thousands in premium costs if not in uncovered claims. AEGIS 2017 Survey
If your broker makes recommendations for purchasing stop-loss like you purchase a fully insured health plan or TPA services you are likely to be led into trouble. Stop-loss coverage protects the business but too often buyers miss this very important distinction. This oversight will put you and your firm at risk.
PEO health plans
PEO’s are HR outsourcing services that specialize in all the services an HR department might provide. This includes things like payroll, work comp., benefits, unemployment, taxes and many other services. I like PEO’s because as specialists they bring expertise employers need.
The bad news is, smaller PEO’s often play a game with their benefit plans, they will show unsuspecting employers what looks like great rates on healthcare. But, if you peel back the details you likely will find out they’re offering a non-compliant self-funded plan.
If your PEO is offering a self-funded plan you should run away, quickly.
Former Underwriter for Hire
I’m experienced as a former underwriter of stop-loss and can help you make a better decision. As an underwriter, I saw first-hand thousands of policy failures made by unsuspecting buyers and brokers.
It doesn’t matter if your broker or consultant is a big-house broker or a PEO you need expert advice before buying a stop-loss policy to protect your company.
Finding the right policy, carrier, and provisions in a policy and weighing the costs to fit your risk tolerance will help you sleep at night.
I can help you no matter where you’re located, please do not put yourself or your business at risk call and get the help you need.
BTW, you can find Alice In Wonderland, the image used, at Disney, here: http://movies.disney.com/alice-in-wonderland-2010 or the website that had the image here, https://goo.gl/images/vMejkJ.