Health Insurance Underwriting with Over 100 Employees Part 1

So, if you’re an employer with over 100 employees, and let’s say maybe between 100 and 500 lives, I think still the most popular way to buy coverage in this market is fully insured, especially in the state of Florida. But more and more, the larger you get, more and more, you’re credible for your own claims experience.

So as you have more employees on your plan, an underwriter is going to look at you and determine more of your rate based on your own employee’s claims and less of your rate based on the performance of their overall book of business. So as you become a larger employer and add more team members. That claims experience is going to account for more of your cost.

And as you get larger, it’s also more advantageous to look into different kinds of funding options. So we talked about level funding. There’s also self-insurance. So a lot of larger employers are going to the self insurance model where they’re just paying for the medical claims as they come in and buying stop loss coverage for large claims and aggregately for the group.

Leave a Reply

Your email address will not be published. Required fields are marked *