A lower expected cost is not better if the group cannot carry the risk.
Risk comes before the projected saving in how we present funding options.
What can go wrong.
Three things to size before comparing savings.
Claims Volatility
A few large claims can swing a year. Smaller groups feel it more.
Cash Timing
Claims are paid as they occur, so cash needs rise and fall.
Renewal of Protection
Stop-loss is repriced each year and can change with your experience.
What stop-loss does.
It limits exposure. It does not remove it.
Specific Coverage
Limits what a single large claim can cost the plan.
Aggregate Coverage
Limits total claims for the year above a set level.
The Fine Print
Contract terms and individual limits change what is actually covered.
How we check fit.
We model the bad year first.
A Realistic Bad Year
We show what a bad year costs after protection.
What You Would Owe
The cash the employer would need in that year.
Whether to Proceed
If the group cannot carry it, we say so and show other options.
Questions Employers Ask About This
Do you recommend self-funding?
Only where the numbers and the group’s appetite support it.
What is a laser?
A provision that sets a higher limit for a named individual. It is one of the terms to read carefully in a stop-loss contract.
Does stop-loss cover everything?
No. It covers what the contract says, so the terms matter.
Related guides.
From Renewals to Results: The Broker Playbook
The full playbook.
Fully Insured, Level-Funded and Self-Funded Plans Compared
Three funding structures.
Choosing a Funding Arrangement: Size, Claims and Cash
What fits which group.
Want this applied to your renewal?
Send us the renewal and we will run it through DATUM and show you where the number comes from.
Your renewal letter
Your census
Your current plan documents
Your renewal date
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
Employee Benefit News: Renewals to Results — Opinion piece on brokers moving from plan shopping to data-driven advisory work.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
Cookies on This Site
We use cookies to keep the site working properly and to understand how it is used. You can decline anything that is not essential. See our Privacy Policy for the detail.
- Essential — needed for the site to load and for you to move around it. These cannot be switched off.
- Analytics — tell us which pages get read, so we know what is worth writing more of.
- Advertising — set by third parties such as ad and social platforms to measure and target campaigns.