What Is A Group Captive?
A group medical stop loss captive is a form of self-insurance where a group of employers join together to create a shared risk pool for catastrophic or high-cost medical claims that exceed their standard group health plan coverage. The employers contribute premiums to the captive, which then acts as an insurance provider, covering claims that exceed the group's predetermined attachment point (the threshold where the stop loss coverage kicks in).
What Are The Advantages Of A Group Captive?
- Pooled risk: By joining the captive, employers can spread their risk across the entire group, protecting themselves from the financial impact of unpredictable, high-cost claims.
- Cost savings: Captives can often provide stop-loss coverage at a lower cost than purchasing it individually on the open market.
- Flexibility: Captives allow employers to customize their stop-loss coverage to meet the specific needs of their employee population.
- Potential profit-sharing: If the captive experiences favorable claims experience, employers may receive dividends or profit-sharing distributions.
- Increased control: Employers have more control over the stop loss coverage plan design, claims management, and other administrative aspects.
How It Works
- Join the Captive: Become part of a select group of progressive organizations committed to innovative risk management.
- Pool Resources: Share risk with other members while maintaining individual plan control and customization.
- Customize Coverage: Tailor your stop-loss coverage to your specific needs, with options for specific and aggregate coverage.
- Access Insights: Leverage our advanced analytics and reporting tools for informed decision-making and proactive risk management.
- Implement Cost Containment: Utilize our suite of cost containment solutions, including pharmacy benefit management and telemedicine services.
- Reap Rewards: Benefit from potential dividends, long-term cost stabilization, and improved cash flow.