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Self-insured plans

Reinsurance coverage

Reinsurance coverage (or excess loss) is insurance for self-funded health plans to guard against unacceptable losses. Excess loss insurance protects self-funded groups against extreme risk. Groups may choose the amount of risk to retain and the amount to cover by excess loss insurance. Excess loss insurance for self-funded health plans has two different parts:

There are two types of excess risk coverage:

  • Specific coverage — This is coverage that insures against a single catastrophic claim by a covered individual. Specific coverage would be used if one of your employees had insurance claims that exceeded the agreed upon dollar limit per person. In this case, the reinsurance carrier would cover all expense above and beyond the dollar limit and protect you as the employer.
  • Aggregate coverage — This is coverage that insures against all the claims from your employees if they exceed a specific dollar limit chosen by you and agreed to by the reinsurance carrier. If all the claims payable exceed the agreed upon dollar limit, aggregate coverage would reimburse you as the employer for claims exceeding the dollar limit. Reinsurance coverage protects your health insurance plan against unforeseen catastrophic claims that would cost more than is budgeted in the plan and place undue financial burdens on you.

BlueAdvantage Administrators of Arkansas can arrange services for groups interested in pursuing excess loss coverage. Through our established relationships with several top-rated excess loss carriers, we can provide competitive excess loss quotes as part of our overall package of services. BlueAdvantage's dedicated Excess Loss Unit coordinates notification, filing and reimbursement activities when contract provisions are met for our clients who use our preferred excess loss carriers.