Product Highlight Stop Loss
Posted on: 3/25/2016 11:30 AM
Product Highlight: Stop Loss
The appeal of a self-funded benefit plan is derived from the access to data and financial advantages it offers. These include improved cash flow, elimination of premium taxes and freedom to invest funds.
There are, however, risks involved in this approach. Increased utilization, inflation and other factors can lead to unacceptable overall plan costs while catastrophic claims can create a “shock loss” which you may not be prepared to handle.
To help stabilize cash flow and protect against extreme fluctuations in paid claim levels, the self-funded benefit plan sponsor can purchase Excess Risk Insurance.
Individual Excess Risk Insurance shields against the threat of shock loss by limiting the claim liability with respect to any one Plan participant. It provides prompt reimbursement if claims exceed a specified per-participant, all-cause deductible amount.