Minimizing financial exposure to catastrophic health care claims is a priority for employers with self-funded health plans, especially as these types of claims become more common due to rapid cost increases. Stop-loss insurance helps self-funded employers protect themselves from higher-than-anticipated health claim payouts by limiting their exposure to employee medical claims that exceed a predetermined amount.

As health care costs continue to rise, many employers are searching for ways to control costs while keeping benefits affordable and attractive to employees. For some employers, self-funded plans can be an effective strategy for lowering health care costs. Many employers have adopted these plans in recent years.