HEALTH CARE CAPTIVES: The Truth Behind the Pitch BY CHRISTIAN MORENO & MARK

SF Friends,

Two of my peers wrote an Article that was published in the April edition of

Increasingly, small- to mid-size groups are joining with like-minded employers to form group medical captives. At their core, the goal of medical captives is to address the stop loss market access/dysfunctionality at the smaller end of the employer market, which is accomplished by providing a lower specific stop loss attachment point for employers with approximately 100-300employees. These captives are sold with a promise to keep medical costs steady and more predictable from year-to-year by spreading the risk among multiple small- to mid-size employer groups.

But do all group captives live up to their promises? How should employers evaluate and avoid pitfalls? With all of the excitement, growth, and sales pitches in this space, it can be hard to discern exactly how these structures work and for whom they are delivering the most value. Medical Captives: