Protection for the self-funded employer
Self-funding is a safe, viable alternative to conventional medical plans. Employers set aside money to use to reimburse the medical expenses of their employees. The amount of risk is based upon the employer's comfort level. Anything beyond that risk is protected by stop loss insurance. Stop loss insurance, therefore, eliminates catastrophic risk for those employers who choose to self-fund their employee benefit plans.
Self-funded plans allow the employer to lower its medical expenses if group claims experience is good. Additionally, self-funded employers can avoid the excessive overhead costs frequently associated with fully insured plans. Stop loss insurance protects the self-funded employer from losing money due to devastating or catastrophic claims. "Specific (individual) stop loss" protects the employer from any single large claim. "Aggregate stop loss" protects the employer from an unusual accumulation of smaller claims.
Contact IMG-Stop Loss for an easy-to-understand alternative to review your plan.