From: Captive.com/IRMI
Editor’s Note: This article, provided by Captive Resources, LLC, examines the rising demand for medical stop loss (MSL) group captives. It explores how these captives help employers manage healthcare costs, control claims volatility, and leverage collaborative strategies to enhance the self-funding experience.
Medical stop loss (MSL) insurance has become increasingly vital for companies that currently self-fund their health benefits plans and those looking to transition to self-funded plans. According to a report from Oliver Wyman, stop-loss insurer premium volume increased to $35.5 billion in 2023, an 11.9 percent increase from 2018.
As the popularity of self-funded health plans and MSL coverage continues to rise, it’s important for employers to understand how MSL coverage supports self-funded employers, what’s driving demand for MSL coverage, and how MSL group captives are helping employers realize the benefits of self-funding.
Why MSL Coverage Is Vital for Self-Funded Employers
Self-funding gives employers more control and visibility over healthcare costs than traditional health plans; however, it can also increase employers’ exposure to high-cost claims. MSL coverage helps mitigate this concern by covering claims exceeding a predefined stop-loss deductible, serving as a safety net against unexpected or catastrophic expenses.
