Specific stop-loss insurance This is also called individual stop-loss insurance. It protects a self-insure employer from unique serious or disastrous claims against an individual. An example could be an employee with a rare cancer who needs a new drug (with a very high cost) to have a chance of survival. There is also generally a deductible for aggregate duties, which applies to all claims paid. For all damages reaching or below their specific stop-loss level, the insurer reimburses the difference to the insured if the sum of these rights is greater than the aggregate stop-loss level. As part of a specific stop-loss directive, an employer can choose a maximum liability per person in its performance plan. If the rights exceed this point, the stop-loss policy reimburses the employer for the rights that exceed this amount. For example, when an employer decides that their maximum liability per person in their benefit plan for that insurance year is US$100,000 and a particular claimant exceeds that liability and their total claims amount to $US 102,000, the stop-loss policy reimburses them for rights in excess of that amount, which is $US 2000. Stop-Loss Insurance Coverage is defined as a layer of coverage that provides self-insuring employers with reimbursement for disastrous rights exceeding the predetermined level. This coverage is acquired by employers who fund their employee pension plan themselves, so they do not have to assume full responsibility for losses resulting from extremely high medical requirements. Health insurance for medical stop-loss helps companies by adding an additional protective barrier against abnormally high demands.
Stop-loss insurance is insurance that protects insurers against significant damage. Stop-loss policies come into effect after a certain threshold has been exceeded in the event of injury. Suppose the stop-loss plan uses a value of $200 USD. This value would then be multiplied by the stop-loss attachment multiplier, which is normally between 125% and 175%. With a damage estimate of $200 and a stop seizure multiplier of $1.25, the monthly deductible would be $250 per month per employee ($200 x 1.25 = $250). Of course, these two types of stop-loss insurance are just the tip of the iceberg. There are of course many options that go hand in hand with these two forms of stop-loss insurance. At present, the most common thing is that employers decide to add both aggregated and individual stop-loss coverage. However, some employers will meet their needs by simply adding individual coverage. Stop-loss insurance is available either separately or as an add-on to each employer`s current health plan. All of these benefits can make a big difference to a company`s end result….