Self-insured plan protected with stop-loss coverage.

[Guest kredlin]

To the extent that a self-insured plan is protected by stop-loss coverage, is the plan considered self-insured and still subject to the rules of 105(h)? For example, if there is stop-loss coverage for all benefits over $75,000 annually, is the plan considered self-insured to the extent that benefits exceed $75,000?

[Greg Judd]

Originally posted by kredlin

To the extent that a self-insured plan is protected by stop-loss coverage...

The nub of it is that stop loss protects the sponsor, rather than the plan.

[KIP KRAUS]

I agree with Greg and in some cases stop-loss coverage is considered casualty coverage and not group insurance coverage when purchased separately. Even an ASO product with a group insurance company has stop-loss coverage, but the plan can be considered self-insured.