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Why Group Medical Stop-Loss Captives and Level-Funded Plans Don’t Mix
McDermott Will & Emery Link to more items from this source
[Guidance Overview]
June 27, 2024

"There is now broad agreement that the group medical stop-loss captive rests on a sound legal and regulatory foundation ... Critical to their operation, however, is that the group medical stop-loss captive itself does not traffic in plan assets. This means that participant contributions, which are always plan assets, must never be applied to the purchase of stop-loss coverage."

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