What Is Health Insurance Stop Loss? 
A stop loss means exactly what it implies , `` it stops your loss '' and the insurance carrier picks up all other costs during that calendar year . For individuals that have health insurance a stop loss is also known as the annual out-of-pocket maximum . After you reach the out-of-pocket maximum in a calendar year the insurance carrier pays the rest of the claims . In a self-insurance situation where a company pays the claims up to a certain dollar amount the `` stop loss '' is the most the employer will pay in any year after which the insurance carrier will pay the remaining claims . 