Alpha Specialty is launching of a new specialty product designed to assist mid-sized businesses control the cost of employee benefit health insurance plans. The product is a group medical stop-loss captive insurance program designed for businesses with 100 to 500 covered individuals, especially those employers currently utilizing self-insured plans.
Under a self-insured medical plan an employer contracts with a claims TPA that has access to a cost-efficient provider network, and with an insurer for "stop-loss" coverage. The stop loss policy covers individual claims exceeding a specific amount (such as $50,000) and annual aggregate claims over a specified amount. The employer generally funds its retention on a pay-as-you-go basis.
A group medical stop-loss captive enhances the self-insured arrangement described above into a much more efficient structure. The "group" consists of a number of mid-sized self-insured employers joining together to share a layer of risk between the individual employer’s claim retention and a much higher attachment point for the stop-loss coverage purchased from the stop-loss insurer. Each member of the group contracts with the captive for the sharing process. Key advantages of this structure are:
The captive will utilize SIU’s affiliated Green Mountain Sponsored Captive Insurance Company, a facility currently hosting a number of individual and group stop-loss captives. A major "A" rated insurer provides the stop loss coverage.
For more information about SIU’s group medical stop-loss captive program, contact Hugh Nelson, Senior Vice President at 678-498-4801, or hnelson@siuins.com.
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