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Captive Insurance and Medical Stop Loss, Controlling Healthcare Costs

Mark Sims
January 31, 2019

A new Captive Thought Leader Video featuring Mark Sims, vice president of business development for Captive Alternatives, titled "Controlling Healthcare Costs: Medical Stop Loss and Captive Insurance" has recently been added to the video library.

Mr. Sims advises that health insurance is one of an employer's biggest expenses. Many businesses are looking to use their captive insurance company to help control healthcare costs. With captive insurance, the employer can prefund, into their captive, premium to cover their claims responsibility within the "specific deductible."

The benefit to the employer is as follows.

  • The employer pays the premium to the captive insurance company, which may be tax deductible.
  • The premium goes into the captive insurance company as reserves to pay claims.
  • If the employer has a better-than-expected claims year, the premium paid to the captive that was not used to pay claims may be retained as underwriting profit inside the captive insurance company.

If this is done over a number of years, a surplus of funds can be built inside the captive insurance company, leading to greater control over healthcare cost dollars.

There is no cost to view the videos, and you will find them in the Captive Thought Leader Videos section of More videos will be added in the future.

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