Program manager establishes cell in Hawaii
BevCap Management, a program manager for multiple captive insurance companies serving the beverage distribution industry, announced the formation of a Hawaii-domiciled cell captive.
BevCap Health is the first cell of BevCap Sponsored Captive Insurance, Inc. A member-driven strategy to provide health benefits for employers, it is a self-funded health plan with group risk sharing. Members implement separate and distinct health plans, yet administer those plans as a group. According to BevCap this leverages the buying power of economies of scale, a system designed to correct the deficiencies driving large price increases in the fully-insured market.
BevCap Health will be joined by a casualty cell within six months, according to BevCap's Lance Abbott.
John Coy, of member Andrews Distributing, said: “the BevCap Group Health program provides Andrews with a toolbox of individual benefits that will not only allow us to actively manage claims costs but also provide the highest degree of wellness for our employees.”
Other participants include Standard Sales Company, Krey Distributing, L&F Distributors, Jordano’s and TriEagle Sales. Together BevCap health covers over 3,000 employee lives.
Hawaii was chosen, according to Abbott, because of the flexibility and stability of the domicile. He explained: "we did an exhaustive search, studying several domiciles and traveling around to interview the regulators along with our partner, USA Risk Group. Hawaii had an appetite for a medical stop-loss captive. The regulators were willing to work with us to figure out what the best structure was going to be. Hawaii has been in the business for over 25 years—they’re one of the longest-operating onshore domiciles in the US. We felt it was the best location for us."