ClearPoint Health unveils new captive risk strategy

ClearPoint Health has released a new captive risk strategy, designed to solve for adverse risk retention and promote accountability among employer members.

According to ClearPoint small to midsize businesses are increasingly leaving fully insured health plans for captive insurance programs, an alternative funding strategy in which employers become stakeholders in an insurance company and combine risk. Unfortunately, many encounter adverse risk retention, a pervasive issue in which captives continue to retain high-cost employer members by subsidising their uncontrolled costs onto low-cost employers.

With adverse risk retention in mind ClearPoint Health said it has optimised its proprietary captive offering, separating itself from competitor captives through the following features:

• Configurability: The new captive model enables customization, allowing employer members to choose their preferred third-party administrator (TPA), pharmacy benefit manager (PBM), network, and point solution configurations.

• Measurement and Support: The new captive normalizes data from all stakeholders in the captive marketplace to provide insights and analytics on each employer member’s behaviour.

• Incentives: ClearPoint Health’s new captive insurance model solves for adverse risk retention through a proprietary Member Engagement Index (MEI). The MEI ranks employer members’ efforts to manage avoidable and addressable employee healthcare claims costs. Employer members that contribute to the sustainability of the captive are rewarded with incentives including no new laser provisions, the distribution of underwriting surplus, favourable rate caps and renewals.

“The release of ClearPoint’s evolved captive risk strategy is a milestone in the larger accountable insurance movement, which we are proud to lead,” said Gene Pompili (pictured), chief strategy officer at ClearPoint Health. “Whereas traditional captives see claims, we engage people. From custom playbooks designed to help employer members make the most of our MEI, to a support team available to help employers navigate difficult conversations with plan members regarding behavioural changes, ClearPoint Health’s captive leads with empathy.”

The captive is exclusively available through ClearPoint Health’s marketplace of alternative health benefits funding solutions

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