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	<title>New answer on: What Is Stop Loss In Health Insurance?</title>

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		<title>By: Marlin McKelvy</title>

		<link>https://insurancelibrary.com/health-insurance/what-is-stop-loss-in-health-insurance</link>

		<dc:creator>Marlin McKelvy</dc:creator>

		<pubDate>Thu, 31 Jul 2014 01:45:13 +0000</pubDate>

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		<description><![CDATA[Some people use the term &quot;stop loss&quot; to mean &quot;maximum out-of-pocket exposures&quot; which is the point in a person&#039;s health insurance policy when they&#039;ve met their deductible and any co-insurance cost sharing and the health insurance carrier becomes 100% responsible for all health care costs after that point.&#160; 

Technically this is an incorrect use of the term.&#160; Stop loss traditionally refers to reinsurance arrangements within self-insured group health insurance plans.&#160; There are two types of stop loss insurance, specific and aggregate.&#160; Specific stop loss insurance protects the group plan from claims exposure above a certain point for any insured person in the group.&#160; For example, a $50,000 specific stop loss policy means the employer accepts the risk for the first $50,000 in claims on an individual and after that point the reinsurance carrier pays the rest of the cost.&#160; Aggregate stop loss insurance protects the employer from claims liability for the entire insured group above a certain point.&#160; A $1 million aggregate stop loss policy means the employer accepts the liability for the first $1 million in claims for their entire insured group, if the group&#039;s claims exceed this limit then the aggregate reinsurance carrier pays the rest of the cost.]]></description>

		

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