From the December/January 2012 issue of Treasury & Risk magazine

Stop-Loss Coverage May Grow

Changes resulting from healthcare reform may encourage more companies to buy stop-loss insurance.

Healthcare reform requires that companies eliminate annual and lifetime limits on their coverage, a development that may encourage more self-insured employers to buy medical stop-loss insurance to guard against having to pay too much in claims.

Ed Kaplan, national health practice leader at consultancy Segal Co., says companies that are considering buying such coverage should look at the volatility of their healthcare claims over the last three to five years, their cash flow and the amount of reserves they’ve set aside for healthcare.

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