Placing Benefits | Stop Loss Risk

Step 1: Data Collection

The broker gathers:

Census data (age, ZIP code, dependents)
Claims reports (if available)
Current plan details
Contribution structure
Renewal terms

For self-funded placements, detailed reporting and large claims reports are essential.

Step 2: Market Submission

The broker submits the group to selected carriers.

For fully insured groups:

Carriers underwrite based on census and history.

For self-funded groups:

Underwriters review detailed claims data.
Stop-loss carriers evaluate risk exposure.

Each carrier returns a formal proposal.

Step 3: Comparative Analysis

The broker prepares a side-by-side comparison showing:

Rates
Funding projections
Network differences
Disruption analysis (which employees lose providers)
Contract terms
Stop-loss structure

This is typically presented to executive leadership or ownership.

Step 4: Negotiation

Brokers negotiate:

Administrative fees
Stop-loss rates
Renewal caps
Performance guarantees
Rate holds
Contract language

Experienced brokers leverage competitive pressure to improve terms.

Step 5: Selection & Implementation

Once a carrier is selected:

Broker coordinates implementation meetings
Finalizes plan documents
Oversees enrollment setup
Aligns payroll deductions
Ensures ID cards and eligibility feeds are correct

Your broker serves as the project manager through the go-live date.

Step 6: Ongoing Stewardship

After placement, brokers:

Monitor claims trends
Conduct quarterly reviews
Assist with large claims
Prepare strategy ahead of renewal
Explore cost-containment strategies

The relationship is ongoing, not transactional.