Stop Loss

Stop Loss insurance provides your company catastrophic claim protection against large medical expenses in a self-funded plan. Each time an insured’s annual claims exceed the limit your company chooses, the Stop Loss insurer pays the excess amounts – protecting the plan’s financial integrity.

The level of claims will, of course, vary by individual. In the example graph, with a $3,000 Stop Loss deductible, insured # 2 and 8 trigger the Stop Loss insurance and amounts in excess of $3,000 are paid by the Stop Loss insurer.

Firm size, recent claims experience, and health plan budgets, are all factors employers should consider when choosing Stop Loss limits for their health plan.