Quick Answer: What Is Minimum Attachment Point?

What is a specific deductible?

Specific Deductible: The dollar amount to be paid by the plan on each covered individual before the stop loss policy kicks in to reimburse expenses incurred during the contract period..

What is the difference between aggregate and specific stop loss?

Specific Stop-Loss is the form of excess risk coverage that provides protection for the employer against a high claim on any one individual. … Aggregate Stop-Loss provides a ceiling on the dollar amount of eligible expenses that an employer would pay, in total, during a contract period.

Is reinsurance the same as stop loss?

If the primary payer is itself an insurance plan, this protection is known as reinsurance, while if the primary payer is a self-insured employer, it is commonly known as stop-loss insurance.

What is an aggregate limit?

An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims. … Health insurance plans often carry aggregate limits.

What is a stop loss attachment point?

Attachment Point Specified limit when a stop-loss insurance contract will pay for an individual or claim. The dollar amount above which specific stop-loss protection begins to pay is called the specific attachment point.

How much does stop loss insurance cost?

When it comes down to it, the cost of stop-loss insurance coverage can vary widely among businesses, but usually, premiums range from $15 per month to $100 per month, according to a survey by Aegis Risk.

What is attachment point?

Attachment Point — the point at which excess insurance or reinsurance limits apply. For example, a captive’s retention may be $250,000; this is the “attachment point” at which excess reinsurance limits would apply.

What is a 12 15 stop loss contract?

12/15 – An increasingly popular contract, claims incurred during the 12-month period and PAID by the end of the 15th month are covered. This gives the employer three months of coverage beyond the plan year to pick up incurred, but not yet paid claims.

What are attachment and detachment points?

The attachment point indicates the minimum of pool-level losses at which a given tranche begins to suffer losses. In turn, the detachment point corresponds to the amount of pool losses that completely wipe out the tranche.

What are stop loss claims?

Stop-loss insurance (also known as excess insurance) is a product that provides protection against catastrophic or unpredictable losses. … Specific Stop-Loss is the form of excess risk coverage that provides protection for the employer against a high claim on any one individual.

What is aggregate stop loss?

Aggregate Stop-Loss provides a ceiling on the dollar amount of eligible expenses that an employer would pay, in total, during a contract period. The carrier reimburses the employer after the end of the contract period for aggregate claims. A number of variations are available for each of these two products.

What is leveraged trend?

Leveraged Trend is the effect of first-dollar medical inflation, which, as mentioned earlier, can average anywhere from 6% – 10% per year, on stop-loss claims. A simple illustration: assume an employer with a self-insured health plan has stop loss coverage with a $50,000 specific deductible.