Should You Join The Alliance Stop-Loss Captive Feasibility Study?

The Alliance is launching a study to learn how much members can save by forming a medical self-insurance captive.

The Alliance captive will cover one layer of risk – the most predictable layer – as a way to lower the cost of reinsurance.  Additional coverage is then purchased from a reinsurance vendor.

The study is designed so Alliance members can guide the captive’s development at every stage. The Alliance is partnering with Moreton & Company, Salt Lake City, Utah, to develop the captive.

Stop Loss Captive Graph

Source:  Moreton & Company
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Do you qualify?

Participating employers must:

  • Have 100 or more employees
  • Be willing to make a long-term investment to gain stop-loss savings
  • Spend time now to answer key questions and then provide additional information about stop-loss practices
  • Commit to attend quarterly meetings to guide the captive’s development
  • Submit data by Aug. 1, 2017.

When the feasibility study ends in the fall of 2017, The Alliance hopes to work with a group of committed employers to create its first captive group for medical stop-loss insurance

Key Questions for Learning Whether a Stop-Loss Captive is a Good Fit for You.

Providing answers to the key questions below is the next step in the process.

  • When is your stop-loss insurance renewal date?
  • Who is your current stop-loss insurance vendor?
  • What is your current “specific” deductible?
  • Are you satisfied with the ratio of claims to premium from your stop-loss vendor?
  • Who bids out your stop-loss insurance on your behalf?
  • Are you currently getting discounts from your stop-loss carrier for being an Alliance member?

To get started, send your answers to these six questions to Mike Roche, Member Services Manager, mroche@the-alliance. org. You can call Mike for more information at 800.223.4139, x6645.

“We owe it to ourselves to take the next step.” 

Read Kevin Lamp’s comments about the stop-loss captive study.

Information Needed to Join the Feasibility Study

If you decide to move ahead to explore the captive, you’ll be asked to provide standard stop-loss information by Aug. 1, 2017. Obtaining a quote does not commit you to joining the captive.

These 10 items are required to generate a stop-loss quote for your proposed participation in the captive:

  1. Executed Business Associate Agreement (BAA) between your company and Moreton.
  2. Current and prior year stop-loss contract, which provides rate history, contract types and compensation
  3. Summary Plan Document (SPD), with plan design(s)
  4. 36 months of claims paid by month
  5. 36 months of enrollment by month, including plan(s) and rate tier.
  6. Large Claims Report – All claims at 50 percent of specific stop-loss level with diagnosis and prognosis per claimant
  7. Aggregate Summary Report for current year and two years prior
  8. Contribution strategy and plan eligibility definitions
  9. Census of all employees eligible for the plan, in electronic format. Census includes date of birth or age, zip code, plan election, tier election and date of hire.  If there have been a significant number of employee waivers, it helps to have a reason for waiver (spouse coverage, parent coverage, Medicaid, etc.).
  10. Letter of Access containing contact information for TPA and stop-loss carrier

View The Alliance Stop-Loss Captive Webinar

Get more information about The Alliance captive from this webinar led by Alex Gloeckner, senior vice president at Moreton & Company and Mike Roche, Alliance member services manager.

Stop Loss Webinar

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