Excess Reinsurance Solutions
A single catastrophic claim can strain even a well-managed health plan’s balance sheet. We offer excess of loss reinsurance, gene therapy protection, and cost containment solutions that help Blue Cross Blue Shield plans reduce risk exposure, increase actuarial credibility, and gain the collective buying power of the Blue System.
What Is Excess Reinsurance?
Excess reinsurance — also called excess of loss reinsurance — protects a health plan from the cost of individual claims that exceed a set retention amount. Instead of absorbing a catastrophic claim alone, a plan cedes the risk above that retention to a reinsurer, capping its exposure and stabilizing its balance sheet. For Blue Cross Blue Shield plans, BCS Financial pools this risk across the Blue System, turning the collective scale of the Blue plans into negotiating leverage and actuarial credibility that no single plan could reach alone.
BCS has provided risk solutions to Blue Cross Blue Shield plans for more than 75 years, supporting a network of more than 22 million insured customers across all 50 states.
Over 75 years providing innovative solutions
22 million
insured customers
A (Excellent) rating by A.M. Best Company
Licensed in all 50 states with our affiliates
Excess Reinsurance Solutions from BCS
Three complementary ways to protect a health plan’s balance sheet, built for Blue Cross Blue Shield plans and the partners that support them.
Excess of Loss
For Blue Cross Blue Shield plans. Protection against disruption from large, unpredictable high-cost medical claims, leveraging the collective scale of BCBS companies to reduce volatility and strengthen actuarial credibility.
Gene Therapy Reinsurance
For health plans. A reinsurance pool product that covers gene therapy ingredient costs, protecting plans against large, catastrophic claims — with back-end management services included.
Cost Containment Solutions
For plans and employers. Partnerships with specialty vendors and service providers supporting clinical intervention and cost-saving initiatives that manage exposure to high-cost claims.
Who We Serve
| Audience | Fit |
|---|---|
| Blue Cross Blue Shield Plans | Excess of loss reinsurance that caps exposure to catastrophic individual claims and pools risk across the Blue System for greater actuarial credibility and negotiating power. |
| Plans Managing Gene Therapy Exposure | Dedicated gene therapy reinsurance alongside excess of loss coverage, protecting against $2M–$4M single-treatment claims. |
| Plans Seeking Cost Savings | Access to BCS’s cost containment vendor network for clinical intervention and claims cost reduction. |
| Brokers & Consultants | Guidance structuring excess reinsurance programs for Blue plan clients, alongside stop loss and cost containment options. |
How It Works
1. Assess your risk profile
Share your plan’s claims experience, retention levels, and risk tolerance.
2. Structure your program
Choose excess of loss for broader coverage, or gene therapy for specific gene therapy ingredient only coverage for your plan.
3. Strengthen your balance sheet
Cap catastrophic claim exposure and gain the collective negotiating power of the Blue System.
Why BCS Financial
- More than 75 years providing risk solutions to Blue Cross Blue Shield plans and the broader market.
- Supports a network of more than 22 million insured customers, licensed in all 50 states with affiliates.
- A (Excellent) rating from A.M. Best Company.
- Expanded RiskNavigator’s solution set through the acquisition of Medical Risk Managers (MRM).
Excess Reinsurance FAQs
Excess reinsurance (or excess of loss reinsurance) protects a health plan from the cost of individual claims above a set retention amount, capping the plan’s exposure to catastrophic losses.
Excess reinsurance is typically structured plan-to-plan — for example, between BCS and a Blue Cross Blue Shield company — while stop loss is typically purchased by self-funded employers. Both work the same way: capping claim exposure above a retention point.
Actuarial credibility refers to how statistically reliable a claims data set is for pricing and reserving. Pooling claims experience across multiple Blue plans creates a larger, more reliable base than any single plan could generate alone.
BCS offers dedicated gene therapy reinsurance that can complement excess of loss coverage, protecting against $2M–$4M single-treatment claims.
BCS acquired Medical Risk Managers (MRM) to expand its RiskNavigator solution set, broadening the underwriting and insurance capabilities available to Blue plans.
Strengthen Your Plan’s Balance Sheet Before the Next Large Claim
Talk with a BCS specialist about excess of loss and gene therapy reinsurance options for your plan.
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Excess Reinsurance Insights & Resources
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Cost Containment Solutions
Cost containment solutions can help identify cost-savings and improve health outcomes and experiences