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Stop-loss comes in two forms: specific and aggregate.
Lasers, in insurance, are common in self-funded plans, where the company takes on an additional claim risk in exchange for lower premiums. So in this case, the company pays the first $400,000 of claims before their stop-loss carrier picked up the rest of the claims.
No new laser with rate caps: A laser assigns a higher specific deductible to plan members with a higher predisposition for illness or healthcare costs, rather than raising the deductible for all. A no new laser contract protects against new lasers being placed on the contract at renewal.
Lasers are typically applied when the self-funded employers claims experience exceeds certain thresholds or triggers set by the insurance carrier, as well as in situations where the stop loss premium may be inadequate for the carrier to profitably cover the members potential claims experience during policy period.