Stop-loss Insurance
We understand self-funded programs have a lot of moving parts and an essential element is shopping for stop-loss. Through our proprietary secure platform, we give you access to dozens of stop-loss vendors, ensuring you see the best quoting for your unique plans.
What is Stop-loss Insurance?
Self-funding is a proven way for employers to regain control of their healthcare spending. With every self-funding plan, employers have safeguards in place to ensure they are not taking on the entirety of financial risk. Stop-loss is the safety net for employers to have added protection against any large claims that would leave their business financially liable. The healthcare independence offered by self-funding is simply augmented with an added layer of risk management.
Stop-loss coverage helps self-insured employers manage unexpected health costs, such as severe accidents, organ transplants, or terminal illness. The key difference is that stop-loss insurance is business liability insurance, so it insures the employer and not individuals.
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There are two forms of stop-loss insurance: specific and aggregate. Each choice has its advantages, and, depending on the need of a given employee population, either or both stop-loss options can supplement a self-funded plan.
Specific stop-loss
Coverage in case of a catastrophe. This policy prevents any individual claim from exceeding an acceptable amount outlined in the healthcare plan, and limits financial exposure to any one individual.
Aggregate stop-loss
Protects against a higher-than-average frequency of claims. Caps financial liability for the whole group if total claims exceed an agreed-upon amount.
Under either model, stop-loss will take over and cover costs that exceed a predetermined amount. With this safeguard, employers reap the benefits of self-funding without taking on extra financial exposure. Contact us today to start saving on your stop-loss quotes.
Are you ready to
self-fund your plan?
Novo Connection can help you find the right funding arrangement for your plan. Our benefit experts have been in the self-funding space for over 20 years and can guide you through a multi-year approach to manage costs and protect your company assets.