Is This the Future Of Health Insurance?

Medical stop-loss captives are becoming a preferred alternative response to the rising costs of healthcare, the problems posed by legislative compliance with the Affordable Care Act, and exponential rate increases in the traditional market. According to Joe Parrilli, senior vice president at Captive Resources, “The lack of transparency in the traditional market makes it difficult for companies to gain any insight into their cost. They are turning to group captives to find control and stabilization of total medical spend.” Employers that are required to leverage solutions such as high deductible health plans and other forms of cost sharing find stop-loss solutions to be a sustainable approach to increasing costs. MSLs provide a layer of coverage to protect against catastrophic specific or aggregated events. Funding MSLs through a captive allows companies to leverage timely data and savings to concentrate on initiatives most useful for its employee demographic.