What is STOP-LOSS INSURANCE? | In less than 3 Minutes
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4 سال پیش
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Selfinsuredreporting.comMany businesses across the country
Selfinsuredreporting.com
Many businesses across the country are finding themselves with the same problem, rapidly rising health plan costs. Every year employers loath having to price new health plans for their employees. The employer gets a ton of quotes from carriers, they end up going with the least expensive which usually isn’t very good for the employee, and then next year that rate jumps up even more.
Because of this never-ending cycle of rising health insurance costs, more and more employers are moving to Self-insured healthcare plans (Otherwise known as Self-funded). Under this type of plan style, employers themselves are the ones who pay for the health benefits being provided to the employees. The employer assumes the risk of paying the claims rather than using the more traditional model of letting the insurance company take on that risk.
This type of Healthcare plan option became popular back in 1974, after a new law exempted Self-Funded plans from State regulation. Ever since then the model has moved down market to smaller and smaller companies.
Due to Healthcare Reform among other things, companies are wanting to take more control over their Healthcare spend. By setting up these types of plans, employers are now able to control more readily the costs associated with offering group health insurance.
How Can a Self-Funded Employer Protect Themselves Against Large Medical Claims?
In order to protect themselves against large unforeseen and unpredictable claims, Self-Funded employers purchase what is known as Re-insurance. This is also referred to as Stop-Loss insurance and is designed to reimburse employers for large claims that go above a pre-determined dollar level. This is not a health insurance policy but rather a legal contract between the stop loss carrier and the employer.
Many businesses across the country are finding themselves with the same problem, rapidly rising health plan costs. Every year employers loath having to price new health plans for their employees. The employer gets a ton of quotes from carriers, they end up going with the least expensive which usually isn’t very good for the employee, and then next year that rate jumps up even more.
Because of this never-ending cycle of rising health insurance costs, more and more employers are moving to Self-insured healthcare plans (Otherwise known as Self-funded). Under this type of plan style, employers themselves are the ones who pay for the health benefits being provided to the employees. The employer assumes the risk of paying the claims rather than using the more traditional model of letting the insurance company take on that risk.
This type of Healthcare plan option became popular back in 1974, after a new law exempted Self-Funded plans from State regulation. Ever since then the model has moved down market to smaller and smaller companies.
Due to Healthcare Reform among other things, companies are wanting to take more control over their Healthcare spend. By setting up these types of plans, employers are now able to control more readily the costs associated with offering group health insurance.
How Can a Self-Funded Employer Protect Themselves Against Large Medical Claims?
In order to protect themselves against large unforeseen and unpredictable claims, Self-Funded employers purchase what is known as Re-insurance. This is also referred to as Stop-Loss insurance and is designed to reimburse employers for large claims that go above a pre-determined dollar level. This is not a health insurance policy but rather a legal contract between the stop loss carrier and the employer.
4 سال پیش
در تاریخ 1399/02/24 منتشر شده
است.
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