stop loss insurance
Stop loss insurance is insurance coverage that is purchased by a health plan or self-funded employer to provide protection from losses resulting from claims over a specific dollar amount per member per year (calendar year or illness to illness).
Types of stop-loss insurance:
Specific or individual
Reimbursement is given for claims on any covered individual which exceed a predetermined deductible, such as $50,000 or $100,000.
Aggregate
Reimbursement is given for claims which in total exceed a predetermined level, such as 125% of the amount expected in an average year.