Captive Benefits

Is a stop-loss captive right for me?

Above all, a stop-loss captive is best suited for organizations looking to invest in a long-term risk management approach. More specifically, organizations with strong loss management, fiscal stability and a willingness to participate in a unique health insurance program are most compatible with stop-loss captives. The best fit, from a size standpoint, are organizations with between 100 and 500 employees. For these organizations, stop-loss captives can save money, increase control and improve overall benefits coverage.

But, stop-loss captives aren’t for everyone. In a stop-loss captive program, if your organization’s losses exceed expectations, the program can cost more than a traditional insurance program. That said, when implemented properly, over time these programs have consistently produced exceptional results for member companies.

Additional benefits include:

  • No premium taxes or state mandated benefits
  • Greater cash flow management
  • Ability to establish operating rules
  • Dividend eligible
  • Preferred plan designs
  • Access to preferred partners
  • Top-quality back office support
  • Creation of required health and wellness plans for employees

Learn more about how a stop-loss captive works by clicking here. To determine if a stop-loss captive is right for your organization, email captives@permainc.com.