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MedBen Captives Enable Smaller Employers To Take Advantage Of Reinsurance Opportunities

06/23/15

  10:48:00 pm, by MedBen5   , 281 words,  
Categories: Health Plan Management, Stop-loss, Cost savings

MedBen Captives Enable Smaller Employers To Take Advantage Of Reinsurance Opportunities

stethoscope and dollar

Midsize and smaller employers are increasingly making the switch to self-funded health care coverage due in part to greater reinsurance availability, says a leading stop-loss carrier... and at MedBen, we're helping these employers benefit from the opportunity.

“Historically, there’s been some reluctance from stop-loss carriers to insure the smaller organizations that are moving to self-insured plans, as they typically don’t have sufficient claims data to use for pricing and evaluating risk,” says Brad Nieland, vice president of stop-loss at Sun Life Financial. “But stop-loss carriers now see the growth potential of the smaller-market segment, and in wanting to capitalize on it, many are finding ways to open their programs and offer competitive coverage.”

One such way that carriers can make stop-loss coverage more accessible to smaller employers is through reinsurance captive programs. MedBen introduced its first captive in January 2014, and participating employers are realizing a level of savings not available through fully-funded insurance.

Self-funding through a MedBen captive reinsurance program affords employers the opportunity to get part of their reinsurance premium back, by spreading risk among multiple groups. A portion of the collective premium is pooled into a “captive” layer owned by all participating groups -- and any funds remaining in this layer at the end of the plan year go back to the participants.

For employers who have considered self-funding but have been reluctant to make the switch from traditional insurance, a captive offers an ideal means of transition. And with MedBen as your health benefits manager, you get access to cost containment tools that can save you even more money!

Learn more about the reinsurance captive advantage by contacting MedBen Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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