Medical Stop Loss Insurance – Protection against Unexpected Loss
Some employers wish to offer health insurance to their employees without having to pay for a costly group insurance plan. A way to do this is by self-insuring. This typically refers to a fund established by the employer which is used to pay the workers’ and their families’ medical expenses. Other way is that the employer pays the health expenses as and when they arise, from a current cash flow. This can become a cost-effective option as compared to traditional insurance but can also be risky. If a large number of employees fall unexpectedly ill, their medical expenses can sweep off the entire health fund or need payments beyond the capability of the employer. If medical bills remain unpaid, the employer will have to face court cases from other employees with unpaid bills of their own. In some situations, it may even bankrupt the organization. This risk can be eliminated with medical stop-loss insurance. Visit medical stop loss insurance Florida who provide excellent services in medical stop-loss insurance with top standards of professionalism.
If you are a business owner and have chosen self-insurance, medical stop-loss insurance can protect you against the risk of bankruptcy. This type of insurance pays the medical bills of your employees after you have paid a particular predetermined amount. Certain policies are designed to safeguard you against huge claims by any one employee or family member. Once you pay the specified amount (say, $10,000), the insurance company pays the rest of the medical expenses of that person, up to the coverage limits of the policy. Other policies safeguard you against an unpredictably large amount of total claims. In that case, the coverage starts once you pay a specific amount towards the medical bills of all your employees (coverage limits apply).
Medical stop-loss insurance can be an excellent means of monetary protection. However, you will have to compare the costs against the potential advantages to decide if this sort of insurance really makes sense for your business. If you have a relatively low exposure to risk (for example, if your workers are young and healthy) you may want to choose self-insurance without getting medical stop-loss insurance for extra protection. Or, after taking into account the estimated claims you may need to pay and the premium for the medical stop-loss coverage, you may come to know that purchasing a group insurance plan is better for you to cover your workers and their families.
If you think that medical stop-loss insurance is right for your company, you will have to seek an insurance provider who provides this specialized product, because all do not provide it. And also compare coverage and costs. Medical stop-loss insurance policies vary widely most of the times; therefore it is essential to select one that fulfills both your requirements and your budget.