SPLIT-FUNDED OR AGGREGATING SPECIFIC OPTION
Healthcare costs for employers continue to climb in
double-digit increments as a result of medical trend and market
fluctuation. SLG Benefits feels it is important to offer pricing
alternatives designed to help Policyholders manage premium increases.
These innovative products offer the Policyholder the ability to take a
limited risk position on their specific premium. The Policyholder
remits a discounted monthly premium rate during the course of the
Policy period. If there is an individual(s) that exceeds the Specific
Attachment Point, the Policyholder forgoes reimbursement until a
predetermined risk corridor has been satisfied. The minimum premium
amount plus the corridor will typically match the traditional premium
charged.
This premium methodology can be a valuable tool for Policyholders to
reduce fixed premium costs, especially for those with favorable loss
experience and solid cash flow. Based on the level of risk assumed by
the Policyholder, this product provides the opportunity to keep their
fixed costs flat during subsequent renewals.
Producers interested in presenting this alternative funding
arrangement should notify their SLG Benefits underwriter. SLG Benefits
offers discounts from 5% to 35% off of the traditional stop-loss
premium. Variables contributing to the discount level selected are
premium and deductible minimums, along with the Policyholder’s risk
tolerance.
If there is a specific claim(s) the Policyholder is responsible for
claims over the Specific Attachment Point until the pre-determined
corridor amount has been satisfied. Once the corridor amount has been
satisfied, all eligible claims become the responsibility of the
carrier for reimbursement to the Policyholder. It is important that
the Policyholder submit all specific claims during the Policy Period
to SLG Benefits even if they are still within the corridor for record
keeping purposes.
A sample
Split-Funded Agreement can be found in the
Forms Section of this Guide.
|
