GHA Medical Stop Loss Program Lunch and Learn Webinar-GHA Medical Stop Loss Program Lunch and Learn Webinar Recording

Video Transcription

Video Summary

The Georgia Hospital Association (GHA) webinar detailed the development and launch of a new Medical Stop Loss Captive Insurance Program, a year-long initiative aimed at moderating rising employee benefits costs for hospitals. Utilizing the existing Georgia Healthcare Insurance Company (GHCIC) captive framework, established since 1995 and domiciled in the Cayman Islands, the program creates a new segregated cell specifically for medical stop loss, distinct from the existing workers' comp reinsurance cell. This structure offers financial and regulatory flexibility, limiting risk to defined layers and protecting member hospitals.<br /><br />The program partners include Gallagher Benefit Services handling consulting and brokerage, Strategic Risk Solutions managing the captive, and MSL Captive Solutions underwriting the stop loss coverage, fronted by US Fire (Crum & Forster) with an A+ rating. The captive model enables hospitals to pool risk collaboratively, reducing premium trend rates significantly—from typical 18-20% increases down to around 6%, improving budget predictability and offering profit-sharing opportunities based on underwriting performance.<br /><br />Hospitals retain their specific deductibles and current TPAs and networks, with the captive covering layers above their deductible to $250,000 and providing aggregate coverage as well. Participation requires collateral to cover potential risk, with GHA contributing capital from existing workers’ comp fund reserves to reduce member hospitals' collateral requirements. Profit credits reward members with better-than-expected claims performance.<br /><br />A feasibility study involving six hospitals demonstrated competitive pricing for five participants, showing potential savings and long-term financial sustainability. The program encourages data submission from hospitals to obtain tailored quotes and improve underwriting precision, aiming for a January 1 full launch. Overall, the initiative seeks to offer a flexible, member-focused financial tool to better control stop loss insurance costs over time.

Keywords

Georgia Hospital Association

Medical Stop Loss

Captive Insurance Program

Employee Benefits Costs

Georgia Healthcare Insurance Company

Cayman Islands Domicile

Gallagher Benefit Services

Strategic Risk Solutions

MSL Captive Solutions

Risk Pooling