Reduce Financial Risk With Stop Loss Coverage

The Self Insurance Institute of America, Inc. (SIIA) states that “while the largest employers have sufficient financial reserves to cover virtually any amount of health care costs, most self-insured employers purchase what is known as stop loss insurance to reimburse them for claims above a specified dollar level. This is an insurance contract between the stop loss carrier and the employer, and is not deemed to be a health insurance policy covering individual plan participants.”

Self-insurance policies may have lower premiums and free up a company’s cash flow, but there is risk involved in the event of catastrophic expenses associated with medical claims. And, in 2014, it was reported by Insurance NewsNet that “individual health claims of $1 million or more have increased tenfold over the past four years due to new medical technologies, advanced drug therapy and more Americans insured under health care reform.”

Stop loss coverage protects self-funded entities in the event of unforeseen or significantly large medical and prescription claim amounts made by an employee or their dependents that are above the stop loss coverage limits that best suit your self-funded plan risk needs.

Because of our experience and expertise in procuring, consulting, and servicing stop loss policies for our clients, SA Benefit Services is knowledgeable in researching products that are most beneficial for each client and obtaining competitive quotes.


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