Support That Helps Ensure Success
For planned success, it is critical that the right TPA and medical stop-loss company is chosen to provide administrative support and financial risk management. Both companies should have favorable reputations with compatible corporate philosophies. Each should have a track record of experience and successes.
Stop-loss coverage places a limit on the amount of financial risk an employer assumes and defers this risk to a stop-loss insurance carrier. That is why choosing the appropriate coverage and contract is critical to the financial success of the self-funded plan.
Most stop-loss policies offer two levels of coverage: Specific and Aggregate. Specific coverage caps employers risk on individual catastrophic claims, so no one claim will deplete and employers' financial resources. Aggregate coverage limits the employers' total overall claims liability so that an unusually high number of claims will not deplete employers' financial resources.