Frequently Asked Questions

Quick answers to navigate captive insurance like a pro

Why medTRANS?2022-08-21T11:23:32-04:00

Healthcare costs are a significant expense – a top 3 expenditure – for most businesses. With the medTRANS captive solution, the business can increase profitability and save money.

Who can join the medTRANS?2022-07-06T16:10:55-04:00

medTRANS is a heterogenous captive, and any class of business can join, subject to medTRANS underwriting policies and procedures.

What is the ideal employee size for participation in medTRANS?2022-07-06T16:11:20-04:00

100 employees or greater, but medTRANS can accommodate smaller groups dependent on certain qualifications.

What is the minimum investment period?2022-08-29T08:59:51-04:00

New members are not required to participate in medTRANS for any minimum time period, however, if a captive participant wishes to attain success within the program, a three-year period is recommended to realize the best rate of return on investment. Further, if a member leaves prior to the conclusion of said three-year period, their initial capital contribution is at risk should the member leave medTRANS with net underwriting losses.

What does “funds withheld” mean?2022-07-06T16:12:16-04:00

The premium paid from the insured business to its cell captive is reported on financials of the cell captive, but such premium is remitted to medTRANS for payment of claims until underwriting profits are due to be released to the cell captives.

Who owns medTRANS?2022-08-04T17:30:13-04:00

medTRANS is a licensed and regulated captive insurance facility. It is 100% owned and governed by its participating cell captives.

Who is the fronting carrier in the medTRANS model?2022-08-04T17:29:44-04:00

medTRANS is a direct writer captive, which means medTRANS does not have a fronting carrier like a group captive.

Who issues the stop-loss policy to the insured business?2022-08-29T09:00:20-04:00

medTRANS manages the stop-loss policy and subsequently provides the policy to each cell captive participating in the medTRANS risk pool. Then, the cell captive issues the policy to the insured business.

Can an employer (insured business) select their own specific deductible?2022-08-04T17:31:34-04:00

Yes, each employer may choose their own level of risk retention.

What is the risk sharing/quota share arrangement?2022-08-04T17:32:03-04:00

Each cell captive generally cedes 100% of their captive’s medical stop loss risk to medTRANS, and medTRANS retrocedes 100% of the said risk back to the collective cell captives.

Where is the captive insurance program domiciled?2022-08-04T17:32:34-04:00

medTRANS is domiciled in Nevada.

Who are the key service providers?2022-07-22T11:16:37-04:00

Captives depend on outside organizations to provide key services for their day-to-day operations. The medTRANS service providers include Complete Captive Management Services, LLC (captive manager) and Jeffrey D. Miller & Company (actuary).

What is a captive?2022-07-06T18:41:44-04:00

A captive is a licensed and regulated insurance company that provides insurance to its insured – the business who purchases insurance coverage through the captive. The primary purpose of a captive is to insure the risk of the participating business, and allow the owner of the captive and/or insured business to benefit from the captive’s underwriting profit. Simply put, when you are a business owner and you need to cover insurance risk associated with your business, you either purchase insurance coverage from a commercial insurance carrier or you can establish a captive insurance company to protect your business against those risks.

What is a medical stop-loss captive?2022-07-06T18:42:42-04:00

A medical stop-loss captive provides its participants the opportunity to control their medical insurance costs. The employer (insured business) self-funds an employee benefit plan for their employee, and then insures risk retention limits though a captive insurance program. Unlike fully insured health plans, there are many resources available to the participating employers to control costs and increase underwriting profits in an otherwise pure expense for a business.

What are common advantages to Captive Insurance?2022-07-22T11:08:24-04:00

There are many advantages to captive participation, including:

  • Customized insurance coverage
  • Transparency and risk management
  • Combined buying power among captive participants
  • Underwriting profits and increased cash flow
Is a captive right for my company?2022-08-04T20:14:17-04:00

A good candidate is a mature company that’s currently seeking to control their healthcare spend, and has a desire to engage in proactive risk management and participate in underwriting profits. Successful captive participants are owners who understand that risk financing is a long-term solution, and are willing to get involved in the captive culture by participating in meetings and engaging in the governance.

To find out if your company is a good fit for medTRANS, contact Phillip Holowka at Complete Captive Management Services at 412-396-9696.


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