What is Stop-Loss?

Stop-Loss is an unsung hero of the self-funding success story. Just as insurance companies buy re-insurance to absorb unexpected large losses from claims, most self-funded plans or sponsors ask their TPAs to arrange Stop-Loss. 

Stop-Loss is a term that means exactly what it says – it is a policy that stops unexpected loss. Self-funded plans often include some sort of stop-loss insurance that will take effect after a predetermined amount has been reached in annual claims payment. This helps avoid risk and protect employers from the expense of catastrophic claims.

For many years, SPBA has had Stop-Loss Service Partners as an active part of the association.  It is a great advantage for client plans and employers to have Stop-Loss Partners learning alongside TPAs through SPBA's educational offerings.