The Alliance is taking the next step toward helping members capture stop-loss savings by creating a medical stop-loss captive.
In 2017, The Alliance held a feasibility study to examine whether Alliance members were interested in forming a captive. The answer was clearly “yes.”
Taking the Next Step
While there was interest in forming a captive, some members were not ready to commit for 2018. Some were coming off a bad plan year; some wanted more information; and some wanted to wait and see what Alliance members who are captive participants had to say.
So for 2018, members in ShareCap are participating in the Salubrious medical stop-loss captive created by Moreton and Company. This is a good interim step because Moreton and Company has also worked with The Alliance to develop ShareCap, which includes selecting Berkley as the fronting carrier.
We’re continuing to work with members to lay the groundwork for launching a members-only stop-loss captive in 2019.
As part of this process, you’ll see ongoing blog posts, webinars and other activities that will help educate members about stop-loss insurance and stop-loss captives. We want members to feel they are making an informed decision to use their cooperative power in a new way through an insurance captive.
Topics that we’ll address in the months ahead include:
- Risk philosophy
- How captives work
- Risks and rewards of captive participation
- Experience of Alliance members who have participated in a stop-loss captive
Analyzing Your Stop-Loss Ratio
We want this education to have a personal component for each member, so we’re also offering a no-obligation captive proposal for each member. This proposal includes a free analysis of your medical stop-loss ratio.
Sign this Letter of Authorization and we’ll do the rest of the work, which includes talking to your third-party administrator (TPA) to get claims data. When the analysis is complete, we’ll share the results with you and your broker.
If you have questions about the process, please contact me at 800.223.4139 x6645 or email@example.com.
Get the Answers You Need
We recognize that medical stop-loss captives are a complicated concept. It’s our goal to use videos, graphics, frequently-asked questions (FAQs) and other tools to make it easier to understand the pros and cons.
Medical stop-loss captives will never be the right choice for every member in every plan year. But for a strong segment of Alliance members, we expect that exploring a medical stop-loss captive may be the next step toward capturing more savings from self-funding.
Mike has a strong background in health benefits and self-funding. He previously served as a regional sales advisor for Digital Benefits Advisors in Madison, Wis., where he managed the health benefits for more than 160 credit union clients across 14 states. Prior to that position, Mike worked at CUNA Mutual Group in their employee benefits division for almost 10 years as an employee benefits sales specialist.
Mike has a bachelor’s degree with a double major in marketing and business administration and is licensed in both health and life insurance in Wisconsin, Illinois, Iowa, Minnesota, Nebraska and Montana.
Read blog posts by Mike.
Latest posts by Mike Roche
- Diving into the Details: Captive Comparison, Analysis & Value - June 5, 2018
- What’s Your Risk Appetite? - May 22, 2018
- Video Aims to Answer Key Captive Questions - April 10, 2018