What is a Laser in stop-loss insurance?

What is a Laser in stop-loss insurance?

A laser in stop-loss insurance refers to an additional attachment that may be added to a stop-loss insurance policy. A laser is a form of underwriting that targets a specific high-risk individual or group within the policy’s coverage. The attachment is used to limit the insurer’s liability for claims made by the high-risk individual or group by specifying a lower level of stop loss coverage or a higher attachment point for those individuals or groups.

For example, if an employer-sponsored health plan has a high-risk individual or group with significant medical expenses, the insurer may add a laser attachment to the stop-loss policy. The laser would specify a lower level of stop loss coverage or a higher attachment point for that individual or group, effectively limiting the insurer’s liability for their claims.

Laser attachments are typically used when the insurer has identified a high-risk individual or group, based on their medical history, claims history, or other factors. By adding a laser attachment, the insurer can manage their risk and provide more competitive pricing for the overall policy. However, it can also result in higher out-of-pocket costs for the high-risk individual or group.

It is important to note that the use of lasers in stop-loss insurance is subject to state regulations and may vary depending on the insurer and policy terms. Employers should consult with their insurance or legal advisor to fully understand the potential impact of a laser attachment on their stop-loss coverage.  Do you have any questions on how to leverage a laser in Stop Loss, contact BenefitsDNA for more information.

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