When should a group purchase stop-loss insurance?
Employers with self-insured medical plans put their assets at risk in the event of catastrophic claims. Stop-loss insurance offers protection against catastrophic or unpredictable losses by covering losses that exceed pre-specified limits called attachment points.
Through Midwest Assurance Company, a wholly owned subsidiary of HealthPartners Administrators, Inc., we offer self-insured employers two forms of stop loss coverage.
Specific stop-loss coverage limits the employers risk to high expenses on each covered family unit rather than the entire population. Specific-only or specific/aggregate coverage is available for groups of 50 or more.
Aggregate stop-loss coverage sets a maximum dollar amount employers would pay for all covered individuals during a contract period. This is referred to as the aggregate attachment point. The stop-loss carrier reimburses employers for amounts paid in excess of this attachment point after the end of the contract period. Aggregate-only coverage is available to groups of 1,000 or more.
