Direct answer
It depends on the company’s cash flow stability and risk tolerance, as small businesses may struggle to absorb unexpected high-cost claims without stop-loss insurance. For many small firms, fully insured plans remain safer because they transfer the financial risk to the insurance carrier.
Actuarial analysis regarding employer-sponsored health plan risk retention strategies. For additional information about employer-sponsored coverage trends, see the Kaiser Family Foundation‘s annual employer health benefits survey.
What this means for you
It depends on the company’s cash flow stability and risk tolerance, as small businesses may struggle to absorb unexpected high-cost claims without stop-loss insurance. For many small firms, fully insured plans remain safer because they transfer the financial risk to the insurance carrier.
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