Commission for Case Manager Certification (CCMC) Exam 2025 – 400 Free Practice Questions to Pass the Exam

Stop loss or reinsurance is specifically designed to cover expenses that exceed a specified threshold for high-risk claims. This financial tool acts as a safety net, protecting insurers from catastrophic losses that could occur when claims exceed what is typically manageable. By implementing stop loss provisions, insurers can limit their risk exposure and ensure that they remain solvent even in the event of unusually high claims.

In the context of case management and healthcare services, this approach is crucial for managing costs effectively, particularly when facing unpredictable and substantial medical outlays. It provides a layer of financial protection that allows organizations to continue to offer coverage while minimizing their risk concerning high-cost claims.

The other choices do not align with the primary purpose of stop loss or reinsurance. They either suggest aims that are not directly related to the mitigation of high-risk claims or involve aspects like reducing premiums and reimbursing medical expenses, which are not the central focus of stop loss agreements.