ASO Plans for 50-99

[ABC]

These groups cannot stand on their own (self-funding), so you need them to aggregate within a Captive, or some similar type of vehicle.

"captive or similar type vehicle"

Can you explain?

 

[somarco]

AmWINS - There's a better way.

 

[leevena]

"captive or similar type vehicle"

Can you explain?

Yes, these types of small groups cannot stand on their own when self-funding...too small, lack credibility, cash flow, etc. If you put them in a captive with other similar size groups, you can aggregate them to a larger number.

 

[ABC]

Yes, these types of small groups cannot stand on their own when self-funding...too small, lack credibility, cash flow, etc. If you put them in a captive with other similar size groups, you can aggregate them to a larger number.

Ok you are talking about self funding a association plan.
There are plenty of examples of how these types of associations have gone bust. 9 times out of 10 the members end up with medical bills they have to pay.

It would be very interesting if you can get re insurance to back that type of paper.

 

[somarco]

They have reinsurance, and an issuing carrier and a TPA.

 

[leevena]

Ok you are talking about self funding a association plan.
There are plenty of examples of how these types of associations have gone bust. 9 times out of 10 the members end up with medical bills they have to pay.

It would be very interesting if you can get re insurance to back that type of paper.

No, not an association plan. Each employer within the captive has their own stop loss contract independent of the other groups.

 

[ABC]

No, not an association plan. Each employer within the captive has their own stop loss contract independent of the other groups.

Do you have an example of this type of plan?
What carrier, TPA, Re insurance is active in this market?

 

[leevena]

Do you have an example of this type of plan?
What carrier, TPA, Re insurance is active in this market?

There are many carriers/tpa's etc. that have been using Captives for years. We have a few running now, as do many other agents/consultants.

 

[somarco]

I believe Wm Mercer still owns a TPA in the midwest and uses captives.

 

[ABC]

Well, I really don't understand the concept of Captives with regards to the small group market.

I have never heard of a Captive chasing this size business.

Leevna since you are unwilling to give any exact info on this market I have to assume this is not a realistic option currently.