A Simpler Way to do Captives with ALPHA
October 3, 2023 | All Things Captive
An ICS employee benefits group captive poses a lot of insurance benefits for business owners. From financial rewards for health and wellness performance, renewal stability, to peer group support and sharing, it’s easy to see why a company would strive for captive ownership. But what if your business has less than 50 enrolled employees on a health plan? The group captive plan may not be the best fit for smaller companies. We are excited to officially announce the launch of our newest captive program on October 1st – ALPHA, a captive solution for smaller to midsize companies.
ALPHA is a simple-funded captive program designed for best-in-class companies that are committed to improving the health of employees with a long-term solution. Designed for small to midsize businesses who are looking for a simpler and bundled approach to their health insurance, ALPHA members can join at any time but will have a common renewal date of January 1st.
The Simple Solution
In comparison to a typical ICS employee benefits group captive, where payments vary month-to-month depending on claims activity, ALPHA owners are able to self-fund their health plan but with a monthly-billed rate. That’s right – no month-to-month (or week-to-week) fluctuations of claims payments. This simple funded captive will provide organizations with more control, more options, and more transparency with trusted industry partners. Want to learn more? Below are some responses to our most frequently asked ALPHA questions.
What is ALPHA?
ALPHA is a captive program that is formed by a group of organizations to help insure each other’s risk through a comprehensive health plan. ALPHA is an alternative to the traditional insurance market and is managed and owned by its policyholders.
What are the benefits of ALPHA?
Well run captives provide stability, control, and transparency on a monthly basis while reducing the cost of insurance. Companies can realize premium returns and underwriting profit based upon their performance. This program provides accountability, simplicity, the sharing of best practices and access to clinical tools unavailable to them in the traditional market.
What does “Simple Funded” captive mean?
A simple funded captive is similar to a level funded captive, meaning ALPHA members will have a known maximum liability and will be funding to that maximum liability with a fixed monthly payment. However, when there is excess funding available at the close of the policy year, ALPHA members will receive 100% of additional dollars from their claims fund as profit.
How is ALPHA bundled?
ALPHA members are required to utilize an independent Third-Party Administrator. This trusted TPA partner has access to multiple nationwide networks, as well as a Medicare+ option similar to Reference Based Pricing.
Who is an ideal ALPHA candidate?
Ideal ALPHA members will have at least 25 covered employees on their health plan. Candidates will have above average demographics, good historical renewal experience, and a focus on employee well-being. There is not a cap to how large a company can be in ALPHA; however, most common organizations have between 25-200 covered on their health plan.
Discover the ALPHA Difference
Do you have at least 25 enrolled employees and are looking for a long-term alternative to traditional healthcare? Reach out to your ICS employee benefits sales contact today or join us on Thursday, October 5th for an ALPHA Captive 101 and learn about how you can gain stability, control and opportunity with your health plan.
