Group stop-loss captives can help employers boost their control and transparency of their healthcare insurance, according to Fairfax benefits consultants at Business Benefits Group.
In a recent blog post, the Fairfax consultants outlined the advantages of using a group stop-loss captive to protect their company.
According to the consultants, group stop-loss is a smart strategic solution for employers who have self-funded insurance to add another layer of protection against unpredictable or catastrophic losses and unforeseen expenses.
Employers that cover their employees’ healthcare expenses using self-funded insurance have the option to purchase stop-loss insurance.
Medical stop-loss offers a more affordable option to commercial insurance but carries a higher level of risk.
The Fairfax consultants emphasise the flexibility stop-loss captives offer, allowing employers to customise their plan rules, coverage levels, and details such as deductibles and copays.
Additionally, they noted that employers must comply with federal laws that govern self-funded insurance policies.
Employers can choose their own provider networks and third-party administrators and members are connected through a stop loss programme purchased through a medical excess insurer.
The consultants stated: “With group stop-loss captives, employers are able to obtain more predictable claims up to a specified amount, while for catastrophic claims, the costs are covered by a separate insurance company which helps protect against healthcare claims that exceed the annual cap.”
“If you are looking to boost your control and transparency, group stop-loss captives may be right for you”
