The reality is that the stop-loss insurance market is undergoing significant changes.Voya Financial is already signaling that it’s prepared to lose customers in 2025 to drive prices back to profitability. They warned the public in August 2024 that claims costs were rising, and now, their CFO is confirming that stop-loss premiums for January 2025 renewals will see rate hikes twice as high as those from January 2024.
Sun Life Financial is in the same boat. A surge in high-cost claims—driven by advanced cancer cases, pricey cancer drugs, and more premature births—hit them hard in the fourth quarter of 2024. Dan Fishbein, president of Sun Life US, responded by raising premiums 14% and tightening coverage for plans with big claims.
In short, if you’re sticking with a low specific deductible, you’re not prepared for what’s coming. The market is shifting, costs are rising, and you need to rethink how you’re managing your health plan. It’s not about whether you want to change; it’s whether you can afford not to.
Let’s not beat around the bush—if you’re sticking with a low specific deductible on your self-funded plan, you’re shooting yourself in the foot. Too many businesses think a lower deductible is the “safe” choice, but all it really does is create higher fixed costs and more headaches. If you want to make smart, strategic decisions for your company, it’s time to rethink your approach.
