The stop loss insurance market has been affected by COVID-19, but the biggest impact has come from indirect and delayed effects. COVID-19 can lead to health conditions like heart disease, cancer, and inflammation in multiple organs, which may not be immediately diagnosed, and delayed treatment has caused some cases to become more severe. Additionally, the postponement of medical treatments due to the pandemic has led to a surge in claims for carriers. Mental health has also become a high-cost claim. With all these factors combined, stop loss insurance has certainly been affected as a result of the global pandemic.
And Still – Stop Loss Insurance is Growing
Despite the pandemic, group-funded insurance has been a top area of growth in the industry. Research indicates that the number of health claims exceeding $1 million increased by 21% from 2020 to 2021, while such claims rose by 37% from 2018 to 2021. Into 2022 and 2023, similar growth trends were examined. This shift has some employers revisiting whether aggregate stop-loss insurance is needed to help limit their health claims liabilities.
Is Change On the Way?
In the US, there have been some regulatory changes in the past year that could impact self-funded plans and stop-loss coverage. The Home Dialysis Act aims to make less expensive dialysis options more accessible, while the No Surprises Act eliminates unexpected or unbalanced billing for out-of-network emergency treatments. Although these changes can help lower plan costs, they are just a small part of addressing the larger issue of healthcare expenses.
The InCap® Solution for Group Life Insurance
In today’s fast-paced and highly competitive healthcare industry, group captives are the ideal solution for modern companies seeking flexibility, agility, and control over their health benefit plans.
At Clark & Lavey, a Hilb Group Company, we have developed the InCap® Solution as a replacement for conventional insurance plans. By joining our program, you can lower your premiums, minimize your risks, and reduce your tax payments.
If you’re ready to start saving, we invite you to join InCap® today.