stop-loss insurance

Stop-loss insurance is a type of coverage designed for organizations, like self-insured employers, to protect against unexpectedly high costs from claims. Essentially, it kicks in when total healthcare expenses exceed a predetermined amount, shielding the organization from large, unforeseen expenses. For example, if an employer's claims surpass a set threshold, the stop-loss insurer covers the excess costs. This helps organizations manage financial risk while maintaining control over healthcare decisions. It acts as a safety net, ensuring that large or unexpected claims don't jeopardize the organization’s financial stability.