By John Sbrocco
While most employers are stuck choosing between stop-loss Captives or Consortiums, a few quietly save $557,240 in stop-loss premiums:
The truth? It’s all about making the right pool decision.
Public pools lack cost-containment requirements,
leading to:
– Skyrocketing claims
– Unpredictable renewals.
Subsidizing the buying of underpriced groups means employers pay for others’ bad decisions.
Misaligned partners like big PBMs prioritize profits, not savings, compounding the problem.
The result? Premiums in public pools increase by 15%-17% annually, during “good” years.
Over 5 years, this adds up to $557,240 more in stop-loss premiums compared to private pools.
Private pools, on the other hand, require mandatory cost-containment strategies.
Only employers aligned with these practices can join, creating stable, predictable renewals.
Employers see 6% renewal increase during “good” years, compared to 17% in public pools.
This is 1 of the reasons PUBLIC employer Captive & Consortium Programs are blowing up.
Public pools can be just as successful when adopting private pool risk management strategies. Their first step is to remove the politics from the equation. The second step is hiring an independent manager who is immune to foreign ideas that are provably at variance with common sense, reason and logic and who adheres to prudent business practices common to American business practices.
