Monthly Archives: December 2011

The Pooling Problem

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Pooling, as far as Benefits programs go, is not a very sexy topic.  A pooling provision is kind of like insulation in your house – it’s there, it’s important, you don’t see it, and you’d probably rather spend money on something splashy and fun, like a plasma TV or granite counters.

Large Amount or Stop Loss pooling provisions are arrangements with an insurer where excess claims beyond a predetermined threshold become the responsibility of the insurer rather than the plan sponsor.  Including one of these provisions on any self-insured health benefit to cap your liability is a very good idea.