Employee Benefits

This has been an area of growth for captives over the past decade, especially for the non-risk manager staffed mid-marketed sized companies. Our experience in employee benefits covers the use of both single parent captives writing medical stop loss or ERISA benefits and group or agency captive programs which may not be subject to ERISA.

Green Mountain can create employee benefit captive solutions for:

  • Single Parent
  • Groups and Associations
  • Agency and Programs

Medical Stop Loss

Writing medical stop loss coverage in a captive is a growing solution for both large companies and small to mid-size employers. It allows its owner to potentially reduce fixed expenses and retain underwriting profits that the carrier otherwise keeps. Combined, the captive owner can reduce year-over-year costs.

Single Parent

With the evolution of the Patient Protection and Affordable Care Act many larger employers who currently self-fund their medical plans have either considered writing this coverage in their existing captive or including it as they develop a captive insurance company. In addition to retaining underwriting and fix costs profits, writing medical stop loss allows for diversifying the captive’s risk portfolio. The addition can provide short-tail stability versus many of the other lines covered in a captive, which tend to me long tail coverages.

Group Medical Stop Loss Captive

Whether heterogeneous (dissimilar industries) or homogeneous (similar industries), the objective of a group captive is to enable an alliance of mid-market employers (50 – 500+ employees) to replicate the risk profile of a single large company. That is, enabling the spread of risk, stability and achieve cost savings from different service providers otherwise not as readily available to each employer alone.

In general, the structure of a group medical stop loss captive is as follows:

  • A group, whether heterogeneous or homogeneous, procures stop loss insurance from one provider
  • Each employer has their own self-funded health plan administered by one TPA or a variety of pre-approved TPA’s (keeping in mind that you want to leverage size)
  • Each employer purchases specific and aggregate stop loss insurance based on their risk appetite, size, etc. This is purchased from the same carrier that will also provide excess reinsurance to the members of the captive.
  • The captive, jointly owned by all the members, assumes a layer of specific medical stop loss risk (i.e. capped at $250,000 excess each employers self-insured retention)
  • The fronting stop loss carrier provides specific and aggregate protection to the captive, capping the risk of the members.

Group medical stop loss captives can be sponsored by benefit consultants, an alliance of brokers, associations or other organizations that work with mid-market employers.

The Vermont Regulatory Advantage*

Over 1,000 companies have already realized the advantages of captive insurance operations licensed in Vermont. In fact, for several years now, Vermont has ranked as the number one captive domicile in the United States and the number three-ranked domicile internationally.

Vermont’s success to date can be attributed to a combination of factors, not the least of which is the ongoing leadership of Vermont’s Governors, both past and present, and both houses of the State Legislature who continue to uphold Vermont’s longstanding tradition of providing solid support for this state’s captive industry. This fact ensures that as captive industry needs change, captive legislation in this state evolves and is further enhanced with timely and meaningful changes made to Vermont captive law.

Vermont continues to be recognized as a quality domicile by captive owners, brokers, regulators, and others in the industry due to its high level of professionalism. An ever-increasing number of companies are further recognizing Vermont as their captive insurance domicile of choice.

*Vermont Department of Financial Regulation

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Take Control, Reduce Costs, Customize Coverage

Managed by Strategic Risk Solutions, Vermont’s leading Captive Management Firm all Green Mountain clients are guaranteed a level of service that is second to none.

Providing a full range of captive management services in the formation of captives and their on-going operation, SRS services are tailored to fit the individual needs of our clients. We enforce a strict peer review process to ensure the accuracy and quality of our work including an annual stewardship report detailing our activities during the year.

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