A&H Intermediaries L.L.C. has created the Medical Excess Experience Pool, an entity that will help carriers cope with the new federal ban on lifetime medical insurance benefits caps.
MEEP also can provide unlimited coverage immediately, before lifetime limit ban takes effect, according to A&H, Minneapolis.
ACA – the legislative package that includes the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act – will ban lifetime health insurance limits and ban or sharply restrict use of annual limits starting Jan. 1, 2011.
MEEP can help participants spread the risk from incurred claim expenses that exceed $5 million per covered person, A&H says.
“The coverage will apply to both group and individual major medical insurance and specific excess of loss insurance or reinsurance of self-funded plans,” the firm says.
Instead of imposing a risk charge, the pool will require participants to pay a relatively low entry fee and an annual service fee, A&H says.
A&H is a life and health reinsurance brokerage and consulting firm.