As health plans look for opportunities to grow their business, many see employer stop-loss as an opportunity.
Over the past decade, submitted financial filings suggest the employer stop-loss (ESL) market has nearly tripled, growing from roughly $7 billion in premium in 2008 to over $21 billion in 2018. As this growth has occurred, a significant share of it has accrued to health plans rather than traditional ESL carriers. While there can be hurdles for a health plan to overcome when trying to enter the ESL market or grow an existing stop-loss block, the market can provide meaningful opportunities. Milliman's Rob Bachler and David Sipprell, Senior Vice President of RGA, provide a data-rich historical view of the stop-loss market and considerations for entry. For health plans that can commit the necessary resources and are willing to accept the inherent risks, ESL can be a growth opportunity that complements their fully insured business.