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A Captive Insurance Company created by and for Connecticut Towns and Schools

CT.PRIME is a non-profit specialty insurance company created by and for Connecticut towns and schools. Its goal is to stabilize medical stop loss insurance costs, ensure accurate benefit plan administration, and develop long-term benefit-cost control strategies. Managed by experienced professionals, CT.PRIME offers shared services, employee assistance programs, and other cost-saving initiatives.

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A Captive Insurance Company created by and for Connecticut Towns and Schools

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  1. A Captive Insurance Company created by and for Connecticut Towns and Schools CCIA ANNUAL COLLABORATIVE May 21, 2019

  2. What is CT PRIME? • An association sponsored, non-profit, non-stock specialty insurance company in CT that launched July 1, 2016 • Comprised of “members,” with by-laws created by a working group of towns and schools, all with equal voting power • First municipal captive in Connecticut governed by a member-elected Board of Directors completing its 3rd year • Managed by a team of experienced insurance professionals, under the day-to-day oversight of CREC, as a contracted service provider to the CT PRIME Board

  3. Why was CT PRIME created? • To stabilize cost and coverage terms of medical stop loss insurance for self-insured towns and schools • To assist members in ensuring that health insurance administrators accurately administer benefit plans (CT PRIME has found errors costing towns $$$) • To collaborate and share ideas and resources to develop other long term benefit-cost control strategies • To provide an opportunity for shared services in CT (no county government)

  4. Goals of CT PRIME • To reduce costs and keep employees healthy. Other CT PRIME programs: • Employee Assistance Program – 24-hours-a-day free counseling and other services • Medical claims and dependent eligibility audits – RFP issued • Medicare Advantage Program - plan to provide relief from OPEB and GASB responsibilities for those members who pay all or a significant portion of their 65+ retirees’ medical premiums

  5. Challenges of a municipal captive • Requires review, oversight and participation by members with a knowledge of health care programs • Requires regular actuarial projection updates • Requires discussions about unpredictable catastrophic claims • Transplants, neonatal intensive care, specialty drugs • Requires discussions about renewal premiums based on group experience vs. employer’s actual loss experience • Requires commitment to stay together for long term goals rather than shopping annually

  6. Benefits of a municipal captive • Allows members to obtain MSL insurance as a group to ensure economies of scale • Allows members to share expertise, best practices and trends • Provides a review of claims by the MSL carrier to ensure compliance with underlying health care plans • Provides support to members to procure additional health and wellness programs such as Employee Assistance Programs • Provides stable pricing and predictability over the long term (claims will always be what the claims are for members)

  7. Key savings • CT PRIME this year issued $8 million in premiums for 12 member towns and schools and close to 10,000 employees • CT PRIME has historically beat industry stop loss trend • Carrier retention percentages included in the pricing for traditional stop loss policies are between 32-36% compared to 26-30% for stop loss captive • 2019-2020 – CT PRIME going out to market to ensure the best financial rate and policy terms

  8. Future plans for CT PRIME • Increase interest in towns and schools working together to improve efficiencies • Explore ways to increase preventative care to reduce health care costs • Expand the number of medical stop loss members • Allow the addition of new captive cells

  9. Future for CT municipal captives? CT PRIME, Inc. – first municipal captive in CT established in 2016 Connecticut Foundation Solutions Indemnity Company, Inc. (“CFSIC”) - chartered and licensed as a captive insurer in 2019 to assist the State of CT with the fair and equitable adjustment of homeowner claims resulting from the pyrrhotite-affected home foundations natural disaster. The State of CT allocated $5 million to reimburse homeowners for the cost of testing their concrete foundation. Special Education Model Task Force Cooperative Model – Task force established by the CT Legislature in 2018 to analyze the potential to establish a captive insurance company to finance special education costs in Connecticut.

  10. A Captive Insurance Company Created by and for Connecticut Towns and Schools CCIA ANNUAL COLLABORATIVE May 21, 2019

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