In this post we’ll pick up where we left off and cover the first bucket, the “CLAIMS fund”.

As previously stated, a portion of the total monthly premium goes into an actual bank account that’s opened and maintained by the TPA for the group. In the example from our first blog post with the group of $400 in total monthly premium, $200 would be deposited into the group’s claims fund each month. These funds would be used to pay the group’s claims as they are processed. If the total amount of processed claims ever exceeds the total amount in the claims fund, then the stop-loss coverage purchased (bucket #2) steps in to provide coverage. We will discuss this function in our next post, please stay tuned!

If you have any questions, please don’t hesitate to contact us anytime at support@carepathbenefits.com or at 1-888-750-0953.