WGA Launches Healthcare Captive
Press for Immediate Release
BOSTON, MASSACHUSETTS, May 21, 2014 – William Gallagher Associates (“WGA”) is pleased to announce the launch of its Healthcare Captive program. Effective July 1, 2014, the program will apply to companies with 75-400 lives, enabling them to better control healthcare costs and manage risk.
Captive insurance has often been described as an “in-house” benefits plan to cover the assets and risks of a company. Within a captive, employers are able to pool part of their excess medical claims costs with other like-minded companies and then purchase commercial stop-loss coverage at higher attachment points. Interest in healthcare captives is gaining prominence as small and mid-sized employers grow increasingly frustrated by the lack of control over healthcare spending. This is driven by their inability to access claims and utilization data, as well as with the Affordable Care Act’s (“ACA”) limit on renewal rating factors and fees. A captive allows these small to mid-sized groups to aggregate their risks to promote cost stability.
WGA’s captive is being launched through its Collaboration Centric Solutions (“C2”) partner, Scott Insurance, which has successfully launched healthcare captives for its clients since 2011. C2 is a nation-wide joint venture of member firms specializing in employee benefits. The group aims to create innovative products and service offerings while delivering greater quality and value to clients. As one of the founding members of C2, WGA will use these captives to better align itself with regionally dominant firms, while at the same time driving collaborative solutions to its clients.
“Captives will prove to be a popular alternative for employers looking to manage risks and costs associated with their medical plan,” said Chris Nadeau, Principal and Employee Benefits Practice Leader at WGA. “[Scott] is one of the national leaders in captives, and we are thrilled to build off of their experience and success for the benefit of our clients.”
WGA is a leading provider of insurance brokerage, risk management and employee benefit services to companies with complex risks and dynamic needs, within industries that include life sciences, technology, financial risks, healthcare, energy, clean tech and environmental services. The firm was founded in 1983 and is one of the country’s leading independent brokerage firms, with offices in Boston, MA; New York, NY; Hartford, CT; Princeton, NJ Columbia, MD; and Atlanta, GA.