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What is Stop Loss Insurance?

Medical stop loss insurance is designed to help limit an employer's liability on catastrophic or high-cost claims. The general assets set aside for the self-funded health plan are insured against unforeseen risks. Medical stop loss insurance provides a ceiling against individual costly claims or higher-than-expected healthcare expenses across the employee population.

Types of Stop Loss Insurance:

Specific Stop Loss

  • A specific pre-determined amount per individual.
  • The employer funds claims up to stop loss amount, then reinsurance pays any claims above that.

Aggregate Stop Loss

  • Pre-determined claim amount on the entire group.
  • Claims over the specific stop loss amount don't track towards aggregate stop loss.

For more information about self-funding, or to obtain a quote, contact a Diversified Group Sales Representative at 888-322-2524 today.