How does Stop-Loss insurance work?
Employers assume part of the risk under a self-funded plan by taking the responsibility to pay part of the plan’s claims. Employers tell us what amounts they want to accept as risk. We realize employers want security, which is why we offer Stop-Loss Insurance underwritten by a variety of highly rated insurance carriers. Stop-Loss Insurance puts a cap on the employer’s medical claim payment risk. This cap is based on the amount employers must pay for an individual’s claims (specific coverage) as well as the combined amount of all claims which employers must pay in a given period (aggregate coverage). When purchasing both specific and aggregate stop-loss insurance, employers are protected from both high individual medical claims and high claims volume.
