By Bill Rusteberg
Imagine backing your self-funded health plan through capital markets instead of an insurance carrier.
A credit-backed large claim line of credit is basically “stop-loss” without the premium. A financial institution or reinsurer provides a line of credit for large claims above a chosen trigger. Employer repays only what they use—along with financing costs.
- Zero or minimal fixed premiums
- No lasering
- True pay-as-you-go mechanism
- Incredible for groups with strong cash flow or reserves
Ideal candidates are groups with moderate to high risk tolerance and groups who enthusiastically and without reservation embrace Risk Manager’s proven and time-tested risk management strategies.
Bonus Read: There’s No Such Thing As A Million Dollar Claim
