How Lasers Work
A laser is a higher specific attachment point applied to a specific member. For example, if the standard specific attachment point is $100,000, a member with cancer may be lasered at $500,000 — meaning the employer pays the first $500,000 of that member's claims before stop-loss triggers. Lasers protect the stop-loss carrier from known high-cost claims — at the employer's expense.
Laser Negotiation
- Negotiate laser amounts: Push back on laser amounts that are disproportionate to expected claims
- Request laser caps: Negotiate a maximum laser amount (e.g., no laser above $500,000)
- Request laser removal: If a member's condition has resolved, request removal of the laser
- Shop the market: Get quotes from multiple stop-loss carriers — laser amounts vary significantly
- Consider laser buydown: Some carriers offer laser buydown — paying an additional premium to reduce the laser amount
Proactive Health Management
IQ Insight
Proactive health management for lasered members can reduce laser amounts at renewal. A member who is lasered due to cancer may have their laser reduced or removed if they complete treatment and are in remission. A member who is lasered due to uncontrolled diabetes may have their laser reduced if they enroll in a diabetes management program and improve their HbA1c. Document health management efforts for lasered members and present them to the stop-loss carrier at renewal.