Removing the risk with Stop Loss Insurance
Any risk of claims exceeding the amount set aside in the healthcare fund can be capped by taking out Aggregate Stop Loss insurance. This will pay for any claims exceeding a specified amount, typically set at around 115% – 125% of the fund value for many Healthcare Trusts in the market.
We can arrange Stop Loss Insurance at Lloyds of London on your behalf and this can be set at a level to suit you so if claims should exceed that amount, the Stop Loss insurance will kick in and cover any further claims.
100% Aggregate Stop Loss
We have the unique facility to also be able to arrange Aggregate Stop Loss insurance at 100% of the anticipated claims fund on our Healix100 Healthcare Funds. This means that employers can rest assured that their claims’ costs are guaranteed not to exceed the value of their fund, eliminating any ‘risk’.
Specific Stop Loss
The whole of the healthcare market has seen a significant uplift in cancer claim costs in recent years. The average cost of a cancer claim three years ago was £50k, but now insurers are regularly seeing cancer claims breaching £100k, £200k and £300k.
These high claims can seriously affect the long term sustainability of any healthcare scheme so to help protect clients’ funds against the impact of individual High Cost Claims, Healix have also added £100k Specific Stop Loss insurance to the contract. This means that for any individual claim exceeding £100k, costs above £100k will be met by an insurance policy rather than the trust fund.
This combination of Aggregate and Specific Stop Loss insurance means that our clients’ healthcare trust funds are not only protected from total claims exceeding the estimated claims fund but also from any individual high cost claims making a big dent in the fund. Furthermore, with the claims fund being less susceptible to spikes from high cost claims, the estimated claims fund required could be reduced for future years.
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