Connors Company self-funds the medical expense benefits that it provides to its employees.Connors Company has a contract with a commercial health insurance company providing that the health insurance company will pay all claims in excess of $250,000.The arrangement with the health insurance company is called

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The arrangement between Connors Company and the commercial health insurance company, where the health insurance company pays all claims in excess of $250,000, is called stop-loss insurance. This type of insurance is used to limit the financial exposure of self-insured companies like Connors Company, by transferring the risk of high-cost claims to an insurance company.

Connors Company Self-Funds the Medical Expense Benefits That It Provides