☰Medical stop-loss coverage protects a self-funded employer health plan from severe claims: the plan pays claims up to a threshold, and stop-loss responds above it. A medical stop-loss captive moves that coverage into a captive, either your own or a group captive formed with other employers, so the premium that would have gone to a commercial stop-loss carrier stays in a company you own or co-own.
Stop-loss comes in two layers, specific coverage that responds when one person's claims pass a threshold, and aggregate coverage that responds when the whole plan's claims do, and both can move into the captive. The fit is natural because self-funded employers have already accepted the underlying risk; the captive changes who profits from the protection layer. Good claims years build surplus instead of a carrier's margin. For many companies this is the first captive conversation, since the health line is where the spend and the frustration both live.