Miller-Lewis: Consortium & Captive Development
AND HOW CAN IT HELP YOU?
Quite simply, a consortium is two or more government audited entities with the objective of participating in a common activity or pooling their resources for achieving a common goal. Chapter 167 of the ORC sets the rules for group purchasing.
A Consortium may benefit your organization for many reasons. Below are just a few examples:
- Greater plan control and additional options for plan design.
- Pooling of entities to minimize costly effect of large claims.
- Self-controlled governing board.
- Better management of claims dollars.
- Larger variety of network options and TPA’s.
- Helps to eliminate insurance company profits.
- Plan administration costs are shared amongst the groups within the consortium.
- Larger membership numbers allow for volume buying.
AND HOW CAN IT BENEFIT YOU?
A captive works very much like a consortium, except the pooling for large claims must be funded up front and the return of saved funds is returned at the end of plan year. This concept can be very beneficial to groups from 25-200 employees due to the volume buying of Stop-Loss insurance at a high specific deductible.
LET MILLER-LEWIS BENEFIT CONSULTANTS HELP YOU WITH THIS!
- We will review all necessary components that make up a medical plan and all suitable carriers for funding design, to find the right fit for your group/consortium.
- We can be available to work with your group during the negotiation process to find the most comprehensive benefit plan possible while keeping cost increases to manageable levels.
- We are available to assist with all aspects of your new consortium plan. While your group maintains control of your plan, we are available to assist you with set up, ongoing management of your plan, reporting, etc.
- We will assist you with ongoing eligibility and claims issues, taking that burden off your Human Resources department -full customer service assistance.