Strictly speaking, stop loss reinsurance is used by most self-insured employers to reduce exposure to loss with their health benefits. The employer establishes a qualified plan document that becomes their group benefit plan. To this they attach a summary plan description that details the employee's coverage, coinsurance, deductibles and co-pays.
The employer then hires a competent plan administrator to manage the administration of the plan benefits. The administrator also might provide a medical network that offers a discount on medical costs when incurred and they usually arrange a benefit prescription manager to mitigate cost of prescriptions.
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