[fa icon="plus-square"] Is captive insurance a new concept?

No. For decades, large companies have used captives, which are designed to take advantage of greater risk diversification across a larger pool, for property and casualty coverage. Use of captives by small and mid-sized employers for health insurance purposes is a more-recent trend, but this type of partial self-insurance utilizing captives has been used successfully in the United States for more than 10 years now.

[fa icon="plus-square"] Is switching to a captive program time consuming and cost prohibitive?

No, this program is turnkey; your company can enroll into a heterogeneous group within 30 days of receiving a proposal.

  • The feasibility study is done at no cost to you.
  • The program does not require a Department of Labor exemption.
  • Working with a quality third party administrator alleviates your HR department’s possible concerns about additional workloads.
[fa icon="plus-square"] How do I control the claims and costs of a partially self-funded program?

Historically, 75% of health insurance claims are the result of chronic (eg. controllable) diseases. In this program, your company will now have the data to respond to your organization’s specific health issues. But because your company is also a member of the much larger captive group, you will be able to negotiate fixed insurance costs based upon thousands of employee lives.

[fa icon="plus-square"] Aren’t captives just for large employers?

No, employer deductibles can be as low as $10,000 and the program includes other unique cash flow features such as:

  • A simultaneous reimbursement feature, which allows your company to have immediate access to the reinsurance for large claims.
  • Aggregate accommodation, which allows you to have monthly cash flow max caps for cash flow management, much like a fully insured plan.
[fa icon="plus-square"] Will I have to change our coverage and networks to access this Captive Initiative program?

No, most captive members elect to keep their current plan, including the same benefits to their employees, and their current network in year one and beyond. It is your choice. Participating in the captive buying coalition will give you full access to claims data, which will allow us to work more closely with you to design an offering that covers your company’s specific needs.